Trust Accounting - How to Reverse a Check or Receipt

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Trust Accounting - How to Reverse a Check or Receipt

 

Once an item has been posted, you cannot make changes to it. You can however reverse a trust check or receipt. A reversal does not delete a posting but rather creates a counter posting. The counter posting ensures an audit trail is maintained.

Because a trust account cannot be overdrawn, you cannot reverse a receipt that will subsequently overdraw an account. If reversing a trust receipt is going to overdraw the account, you need to first either post a new receipt to replace the one you are going to reverse or you need to first reverse the trust check(s) written on the account.

 

To reverse a trust check or receipt:

Choose Trust module > Ledger tab
Enter the File Number and click OK
Double-click the item you wish to reverse so you are on the check or receipt detail

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Select Reverse Transaction from the Special menu at the top

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Date the reversal the same as the original posting date, enter a reason and reverse

Important Note! If the item you wish to reverse was posted in a period for which a bank rec has already been complete, you shouldn't date the reversal the same as the original posting date. This will throw out your previous bank recs. You should post the reversal as at the current date.

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