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CosmoLex - Invoice Payments - Immigration Law

CosmoLex - Invoice Payments - Immigration Law
Written by
Paul W Carlson, CPA
Published on
Dec 12, 2023

Paul W. Carlson, CPA (00:00):

Hi, this is Paul Carlson, CPA with Law Firm Velocity. We are working through this CosmoLex case study. In previous episodes, we created a new matter, created an invoice for the $6,000 flat fee, and we deposited $7,300 into the IOLTA trust account. In this video, we're going to go ahead and transfer the $6,000 from trust into operating and mark that invoice as paid. So let's jump over to CosmoLex. And from the CosmoLex dashboard, to record an invoice payment we select activities, invoices, we select the invoice we're going to apply a payment to, so here we have the $6,000 invoice for the test company, and do an invoice payment, and we have the $7,300 in IOLTA trust account. So we're going to apply to that trust account. And from this screen, it has already selected the correct trust account balance. So notice it has a remaining amount of 7,300, which is the amount we deposited.


So just to show you how smart CosmoLex is, let's say we're going to do an $8,000 draw. We're going to do an EFT, and so here we have monies coming from trust into operating. It tells us already that our remaining amount is 700. We do receive payment. It will actually block us from making the transaction, and it won't even let you enter the transaction into CosmoLex, which is a wonderful control when we're delegating work to office managers and other folks within the firm. So let's change this to the correct $6,000. So here we're telling it we moved $6,000 from trust to operating, and we do receive payment, and we are done. So if we go back to our invoices screen that that invoice is no longer showing as open. And with the payment posted, let's go pull up the matter and pull up that $6,000 invoice to see what it looks like after the invoice has been applied.


So we go to our test company, Immigration Work matter, we go into invoice, usually the default here is to show only current, we want to see all the invoices. So let's click into our $6,000 invoice, and from this screen we can see that we had the $6,000 fixed fee invoice. At the bottom, it shows us that we still have $1,300 left in IOLTA. And below we have the trust account detail that we have the $7,300 deposit and we have a $6,000 withdrawal. So there's where we can see that we can actually print a report and hand it to clients and it's understandable showing the transaction flow.


All right, and so with that, we've covered how to record invoice payments within CosmoLex. And so now let's take a look at a variation on the invoice payment process we just looked at. Say the client paid us and the funds were deposited directly to the operating account. It's the same concept. We find and select the invoice, we select payment using, but instead of saying the payment came from the trust account, we just select the payment came via cash or check. And from here we can see that the payment would be deposited directly into the operating account. And with that, we've shown the two ways to record a invoice payment within CosmoLex. All right, so the next video we'll cover how to pay filing fees directly from trust. If you need accounting help for your immigration law firm, please contact us through Thank you.