Overview

The General Retainer functionality enables U.S. firms to receive, manage, and apply funds paid under a General Retainer fee agreement.

Unlike client funds held in trust, General Retainer funds are deposited into the firm’s office or operating account and treated as earned income upon receipt, subject to the terms of the applicable fee agreement and the professional-conduct rules of the relevant jurisdiction. The funds remain associated with the appropriate matter and can later be applied to invoices issued for that matter.

Efimis tracks General Retainer funds separately from trust funds, office credits, and other matter balances. This gives firms clear visibility into the source, availability, application, transfer, and reversal of retained funds while preserving a complete audit trail.

Benefits

General Retainer helps firms:

• Receive funds under a General Retainer agreement directly into the firm’s office or operating account.
  
• Keep General Retainer balances clearly separated from trust funds and other office credits.
• View the amount available for each matter before applying funds to an invoice.
• Apply General Retainer funds directly to invoices for the associated matter.
• Fund an invoice from Trust, General Retainer, or a combination of both, where permitted.
• Transfer General Retainer balances between matters while preserving the source and history of the funds.
• Automatically restore funds to the correct source when an invoice is unfinalized, unlinked, or reversed.
• Provide clients with visibility into retained funds through Statements of Account.
• Report on General Retainer balances and transactions independently.
• Maintain a detailed audit trail throughout the entire lifecycle of the funds.
  

Configuring a Matter

The Fee Agreement field identifies how the Matter is funded.

Fee Agreement Options

The Fee Agreement field will include options such as Fixed Fee and General Retainer.

Receiving General Retainer Funds

General Retainer funds can be received from:

• Banking → Office Receipt
• Matter → Office Ledger → Post Receipt

When a receipt is posted to a matter where the Fee Agreement is General Retainer, the allocation will default to General Retainer.

The receipt updates the matter’s General Retainer balance and Office balance. It is recorded separately for audit purposes.

General Retainer receipts are available only at Matter level.

General Retainer Balance

Each Matter displays a separate General Retainer Balance within the Office financial section.

The balance can be drilled into to view:

• Retainer receipts
• Invoice allocations
• Transfers

General Retainer transactions remain separately identifiable throughout the matter lifecycle. 

Paying Invoices Using General Retainer

Invoices can now be funded from:

If both balances exist, Efimis displays each balance separately.

Users may:

• allocate entirely from Trust
• allocate entirely from General Retainer
• fund from both sources

Validation ensures:

• each retained allocation does not exceed the available balance for that source
• total retained allocations do not exceed the outstanding invoice balance

Paying an Invoice with Credit

Navigate to:

Invoice → Pay with Credit

Users can offset available credits against an invoice where applicable.

Each allocation is recorded independently to preserve a complete audit trail.

Pending Transfers Widget

Where General Retainer transactions exist, the Pending Transfers widget includes General Retainer information. 

Available tabs include:

• All
• Trust
• General Retainer

The General Retainer tab:

• displays invoices funded by General Retainer
• processes only the General Retainer portion of mixed-funded invoices
• requires a Date and Reason
• does not require a Pay To Office Account or Payment Method

The existing Trust workflow is unchanged.

Matter to Matter Transfers

General Retainer can be transferred between Matters.

Validation ensures:

• the transfer amount cannot exceed the General Retainer balance held on the source matter
• the destination matter receives the transferred amount as General Retainer

The source of funds is preserved throughout the transfer.

Unfinalizing and Reversing Transactions

If an invoice funded by General Retainer is unfinalized, unlinked, or reversed, Efimis restores the funds to the original funding source.

For mixed-funded invoices:

• General Retainer amounts return to General Retainer
• Trust amounts return to Trust

Statements of Account

Where a Matter has a General Retainer Balance, the Statement of Account displays:

• Current General Retainer Balance
• Invoice Balance
• Net Amount Due after deducting the available General Retainer

This provides clients with a clear view of retained funds available against outstanding invoices.

Reporting

Reports may include General Retainer information where General Retainer balances or transactions exist. 

• Fee Agreement
• General Retainer Balance

The following reports support General Retainer reporting:

Office Balance Calculation

General Retainer is included when calculating the Office Balance.

The balance is calculated using:

Office Balance = Invoice Balance + Unbilled Incurred Disbursements - Billed Anticipated Disbursements - Office Credit Funds - General Retainer.

Although included in the Office Balance calculation, General Retainer remains separately identifiable. 

Key Behavior

Best Practices

• Use General Retainer only where a Matter is operating under a General Retainer agreement.
• Review available Trust and General Retainer balances before applying retained funds to invoices.
• Where applicable, review both Trust and General Retainer balances before applying funds to an invoice. 
• Review the Pending Transfers widget regularly to process retained allocations.
• Confirm transfers before posting, as all movements are recorded for audit purposes.
• Monitor General Retainer balances through Matter reports and Statements of Account to ensure funds are applied appropriately.