Overview

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

Payments 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
• Recalculates the affected balances
• Creates reversing entries
• Retains the original payment for a complete audit trail

When to Reverse a Payment

Reverse a Client/Trust Payment when:

• The payment was posted in error
• The incorrect Matter was selected
• The payment amount was incorrect
• The payment must be cancelled and entered again correctly

Before You Reverse a Reconciled Payment

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

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

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

Payment Matched in an Open Reconciliation

If the payment is matched within an open reconciliation:

• Open the current Reconciliation

• Locate the matched payment

• Unmatch the payment from the bank entry

• Open the payment again

• Select Reverse

The transaction details display Transaction is matched in reconciliation while the payment 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 Payment From the Cash Account

Navigate to:

Banking → Client/Trust → Select Account

Alternatively, open the account from the Accountant Dashboard.

1. Locate the Payment

1. Open Cashbook Entries.

2. Locate the required payment.

3. Select the payment to open its transaction details.

2. Check the Reconciliation Status

If Reverse is unavailable:

• Undo the completed reconciliation, or

• Unmatch the payment from the current reconciliation

Return to the payment 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 payment was reversed

Reverse a Payment From a Matter

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

1. Locate the Payment

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

2. Check the Reconciliation Status

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

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

Undo or remove the reconciliation 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.

What Happens After Reversal

After the payment has been reversed:

• The original payment is marked as reversed

• A separate reversing transaction is created

• The Client/Trust Ledger is updated

• Affected Matter balances are recalculated

• Linked journal and ledger entries are reversed

• The original payment remains visible in the transaction history

Reversing Payments 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 payment

• Check whether the payment is matched or reconciled

• Record reconciliation details before undoing a reconciliation

• 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 payment only after the incorrect payment has been reversed