Overview

Protected Funds refers to setting aside Client/Trust monies for a specific intended purpose.

Protected Funds can be created:

• From a Matter
• When processing a Client/Trust Receipt

Protected Funds ensure money is reserved and cannot be used until formally released.

Creating Protected Funds

Option 1 – Create from Matter

Step 1 – Access Matter

• Navigate to the relevant Matter

Step 2 – Open Protected Funds

• Go to:
  • Client/Trust Ledger
  • Select Protected Funds from dropdown

Step 3 – Create New

• Click New Protected Funds

Step 4 – Enter Details

Step 5 – Select Payee (Entity)

• Start typing in Payment To
• Select from directory OR create new entity

If a new entity is created:
Additional address & payment details must be completed
The entity will go through a Supplier Verification process before payments can be made.

Step 6 – Save

• Click Save

The Client/Trust Ledger must have a balance before Protected Funds can be created.

Option 2 – Create During Receipt

Protected Funds can also be created when processing a Client/Trust Receipt.

Step 1 – Post Receipt

• Enter a Client/Trust Receipt as normal

Step 2 – Enable Protected Funds

• In Receipt Allocations, toggle:
  • As Protected Funds → ON

Step 3 – Enter Details

• Complete payment details
• Click Add

For full receipt instructions, refer to the Client/Trust Receipts guide.

Releasing Protected Funds

Protected Funds must be released before funds can be used.

Step 1 – Access Protected Funds

• Navigate to the Matter
• Go to:
  • Client/Trust Ledger
  • Protected Funds → View Protected Funds

Step 2 – Select Fund to Release

• Click the currency icon (release option) on the line item

Step 3 – Payment Screen

• System will display:
  • Relevant Matter Number

Some fields may automatically populate based on the details entered when the protected funds were created, such as Cash Account, Pay To, Matter Number, and Amount. All fields can be reviewed and edited if required before posting the payment.

Step 4 – Enter Payment Details 

Step 5 – Select Payee (Entity)

• Start typing in Pay To
• Select from directory OR create new supplier

If the supplier does not exist:
A "New" indicator will appear
A new entity will be created upon selection

Step 6 – Finalise Payment

Choose one:

• Post → Record payment
• Post and New → Record and open new payment screen

Best Practices

• Ensure sufficient Client/Trust balance before creating Protected Funds
• Use clear, auditable Reasons for both creation and release
• Verify supplier/entity details before payment
• Only release funds when the intended purpose is confirmed
• Maintain consistency in naming and descriptions for reporting