How do I Issue a Credit Back to the Client?

For most law firms, the client balance should be in the Trust Account. To refund from the trust account, click here.

The following are three different situations related to issuing credits back to the client if the credit is in operating account i.e. the Payments tab:

  • The Client Underpays an Invoice – Credit the Unpaid Amount

  • The work is completed and the total invoice amount is $10,000. However, for whatever reason the client remits a payment of only $9,500, which is entered in Timesolv as Credit Type = Payment and Payment Method = Check. 
    How is the difference of $500 handled? In this situation, enter a new payment as Credit Type = Credit Memo and Payment Method = Internal in the amount of $500. Once this new payment has been saved in Timesolv, allocate it against the remainder of the original $10,000 invoice that was not paid in full by the client.

    In the next two scenarios, the client has overpaid by $500 for a total of $10,500.

  • The Client Overpays an Invoice – Apply Payment to Future Invoices

  • This is similar to scenario I above, except it is agreed that a $500 credit should be applied toward the next month’s bill or a future bill. In that case, there is no need to do anything different or special in Timesolv: the $500 will show as unallocated credit when the next invoice is generated and will be subtracted from the total amount owed by the client. A $500 credit can be allocated against the new invoice at any time after the invoice has been sent (i.e., an invoice number exists).
  • The Client Overpays an Invoice – Issue and Track a Client Refund

Click on  Payments>Payments screen.

Select ' Refunds' on the top right of the screen.

A list of refundable payments will appear. Click on the ' Refund' link against them.

The ' Refunds' tab on this screen will show a list of refunds processed.

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