Once a Trust Check or Trust Receipt has been posted, it may not be edited (other than to change the check number if re-printing a Trust Check). If a posted item requires a change, it must be reversed. It can then be re-entered. The reversal creates a counter-posting to the original transaction, thus leaving an audit trail of the transaction.
Trust Accounts may not be overdrawn in Brief Accounting. As a result, if a Trust Receipt has to be reversed that will result in a negative balance in a given matter, one of the following has to happen:
- a new receipt must be posted prior to reversing the receipt done in error
- the trust check(s) must be reversed prior to reversing the trust receipt
To Reverse a Trust Check or Receipt
Select the Trust module icon > Ledger tab:
Enter the File Number of the matter containing the transaction to be reversed and click OK:
This will display a list of all Trust Receipts and Checks for the matter.
Double-click on the transaction to be reversed to view the transaction detail:
Note: If the Cleared Bank check-box is checked, it must first be un-checked in order to reverse the transaction.
With the transaction detail displayed, click on the Special menu along the menu bar at the top of the screen:
From the Special menu, select Reverse Transaction:
Click "Reverse" to the following message:
Note the Reversal Date. As a general rule, this should be the same as the original transaction date. Enter a reason for the reversal and click OK:
The Trust Ledger for the matter will show the original transaction and the reversal:
Note: Transactions that have been reversed DO NOT show on any statements produced for the client. They are kept in Brief Accounting for audit purposes and tracking.
Exception to the Reversal Date General Rule
If an item to be reversed was posted in a prior period for which a bank reconciliation has been completed, the current date should be used as the reversal date (rather than the date of the original transaction).
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