Paying Disbursements from Client/Trust Funds
Overview
This article explains how to pay Purchase and Anticipated Disbursements directly from Client/Trust funds.
This process is commonly used when client funds have already been received into Trust and a supplier needs to be paid before transferring any remaining fees to the Office account.
Key Behaviour: Paying a disbursement from Client/Trust funds will reduce the invoice balance automatically (if the disbursement is included on the invoice).
When to Use This
Use this process when:
- Client funds have been received into the Trust account.
- A Purchase or Anticipated Disbursement has already been recorded.
- The supplier needs to be paid directly from Client/Trust funds.
- Any remaining professional fees will be transferred later using a Client/Trust → Office Transfer.
Important Information
Important
If you pay an Anticipated Disbursement directly from Client/Trust funds before it has been billed, its status changes to Closed.
A Closed Anticipated Disbursement cannot be billed later.
Ensure you understand your firm's billing process before paying an unbilled Anticipated Disbursement.
Pay Disbursement
Navigate to:
Matters → Select Matter → Client/Trust Ledger
Step 1 - Create the Payment
Click:
Post Payment
Complete the payment details.
| Field | Description |
|---|---|
| Pay To | Supplier or payee |
| Amount | Amount being paid |
Step 2 - Allocate the Payment
First remove the default allocation.
- Select the Matter allocation.
- Click Remove Selected.
Then allocate the payment to the correct disbursement.
- Click Add Allocation.
- Enter the Matter number.
- Select the Purchase or Anticipated Disbursement being paid.
Step 3 - Post the Payment
Click:
Post
The payment is processed immediately against the selected disbursement.
| Scenario | Result |
|---|---|
| Disbursement has already been billed | Outstanding invoice balance is reduced automatically. |
| Purchase Disbursement | Supplier is paid and the disbursement is updated. |
| Anticipated Disbursement not yet billed | Status changes to Closed and it can no longer be billed. |
Remaining Invoice Balance
Where the client has already paid the full invoice amount into Trust:
- the disbursement payment reduces the invoice balance automatically
- any remaining fees can be transferred using:
Client/Trust → Office Transfer
This allows disbursements and professional fees to be processed separately while maintaining accurate accounting records.
Key Behaviour
| Area | Behaviour |
|---|---|
| Payment source | Client/Trust funds |
| Allocation | Must be linked to a specific disbursement |
| Invoice impact | Invoice balance reduces automatically when applicable |
| Anticipated Disbursement | Status changes to Closed if paid before billing |
| Remaining fees | Processed using Client/Trust → Office Transfer |
Best Practices
- Confirm sufficient Client/Trust funds are available before posting the payment.
- Always allocate payments to the specific disbursement, not the Matter balance.
- Decide whether an Anticipated Disbursement should be billed before paying it from Client/Trust funds.
- Confirm whether the disbursement has already been included on an invoice before making payment.
- Follow your firm's approval and compliance procedures when making payments from Client/Trust accounts.
- Complete any required Client/Trust → Office Transfer after disbursement payments have been processed.