Overview

A Client/Trust Receipt Reversal is used to reverse a receipt that was posted incorrectly to a Client or Trust Account.

Receipts can be reversed from:

• The Client/Trust Cash Account

• The relevant Matter

Throughout this guide, Client/Trust refers to Client Accounts and Trust Accounts or Ledgers, depending on your jurisdiction.

A reversal:

• Updates the Client/Trust Ledger

• Reverses the receipt allocations

• Recalculates the affected balances

• Creates reversing entries

• Retains the original receipt for a complete audit trail

When to Reverse a Receipt

Reverse a Client/Trust Receipt when:

• The receipt was posted in error

• The incorrect Matter was selected

• The receipt amount was incorrect

• The receipt was allocated incorrectly

• The receipt must be cancelled and entered again correctly

A receipt involving a Statutory Deposit cannot be reversed using this workflow.

Before You Reverse a Reconciled Receipt

A receipt included in a completed bank reconciliation must be removed from the reconciliation before the Reverse action becomes available.

Receipt Included in a Deposit Slip

A receipt can be reversed after it has been included in a deposit slip.

You do not need to reverse the deposit slip before reversing the receipt.

When the receipt is reversed, Efimis:

• Creates the required correcting entries

• Reverses the receipt allocations

• Updates the relevant cash account and ledger balances

• Retains the original deposit slip and receipt for the audit trail

The deposit slip is not automatically reversed.

Reverse the deposit slip separately only when the deposit itself needs to be corrected.

Reconciled Deposit -  If the receipt or deposit has been included in a completed bank reconciliation, undo the reconciliation before reversing the receipt.

Completed Reconciliation

Use Reconciliation History to undo the completed reconciliation:

1. Open the relevant Client/Trust Cash Account.

2. Open the account’s Reconciliation screen.

3. Open Settings.

4. Select View Reconciliation History.

5. Locate the most recent reconciliation.

6. Select Undo Reconciliation.

7. Confirm the action.

Only the most recent reconciliation can be undone.

If the receipt belongs to an older reconciliation, undo each later reconciliation first, working backwards until the required reconciliation can be undone.

After correcting the receipt, complete the affected reconciliations again where required.

Receipt Matched in an Open Reconciliation

If the receipt is matched within an open reconciliation:

• Open the current Reconciliation

• Locate the matched receipt

• Unmatch the receipt from the bank entry

• Open the receipt again

• Select Reverse

The transaction details display Transaction is matched in reconciliation while the receipt remains matched.

Access the Client/Trust Cash Account

The Client/Trust Cash Account can be accessed from either location:

Both routes open the same Client/Trust Cash Account.

Reverse a Receipt From the Cash Account

Navigate to:

Banking → Client/Trust → Select Account

Alternatively, open the account from the Accountant Dashboard.

1. Locate the Receipt

1. Open Cashbook Entries.
2. Locate the required receipt.
3. Select the receipt to open its transaction details.

2. Check the Reconciliation Status

If Reverse is unavailable:

• Undo the completed reconciliation, or
• Unmatch the receipt from the current reconciliation

Return to the receipt after completing the required action.

3. Enter the Reversal Details

Select Reverse and complete the following fields:

Select Reverse to complete the transaction.

Audit Requirement - Enter a clear and meaningful Reason explaining why the receipt was reversed.

Reverse a Receipt From a Matter

Navigate to the required Matter and open its Client/Trust Ledger.

1. Locate the Receipt

1. Open the relevant cash account or ledger entries.
2. Locate the required receipt.
3. Select the receipt to open its transaction details.

2. Check the Reconciliation Status

The receipt cannot be reversed through the UI while it is:

• Included in a completed reconciliation
• Matched in an open reconciliation

Undo the reconciliation or remove the match before continuing.

3. Complete the Reversal

1. Select Reverse.
2. Review the Reversal Date.
3. Enter a clear Reason.
4. Select Reverse to confirm.

Insufficient Client/Trust Funds

Reversing a receipt removes the funds originally added to the Matter.

If those funds have since been used, the reversal may result in an insufficient Client/Trust balance.

Efimis may display a warning identifying:

• The affected Matter
• The balance that would result from the reversal
• Whether the user has permission to overdraw the Client/Trust Account

Review the Matter balance and your firm’s compliance requirements before continuing.

What Happens After Reversal

After the receipt has been reversed:

• The original receipt is marked as reversed

• A separate reversing transaction is created

• Receipt allocations are reversed

• The Client/Trust Ledger is updated

• Affected Matter balances are recalculated

• Linked journal and ledger entries are reversed

• The original receipt remains visible in the transaction history

Where the receipt was allocated to an invoice, reversing it restores the applicable invoice balance.

Reversing Receipts in Earlier Periods

Review the Reversal Date before completing the reversal.

A reversal cannot be posted:

• Before the original transaction date

• Into a locked or closed ledger period

• To a locked, closed or inactive account

Use Ledger Locking to prevent transactions from being posted into previously reported accounting periods.

Key Behaviour Summary

Best Practices

• Confirm that you have selected the correct receipt

• Check whether the receipt is matched or reconciled

• Record reconciliation details before undoing a reconciliation

• Review the original receipt allocations

• Check whether the funds have subsequently been used

• Enter a clear and descriptive Reason

• Review the Reversal Date

• Reconcile the account again after completing the correction

• Follow your firm’s approval and compliance procedures

• Enter a replacement receipt only after the incorrect receipt has been reversed