Overview

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

Payments can be reversed either from the Client/Trust Cash Account or directly from the Matter, depending on how you are managing the transaction.

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

Reversing a Client/Trust Payment updates the Client/Trust Ledger immediately and records a reversing transaction to maintain a complete audit trail.

When to Use a Payment Reversal

Reverse a Client/Trust Payment when:

• a payment has been posted in error
• the incorrect Matter was selected
• the payment amount was incorrect
• the payment needs to be cancelled before being re-entered correctly

Accessing the Client/Trust Cash Account

The Client/Trust Cash Account can be accessed from two locations. 

Both navigation methods open the same Client/Trust Cash Account. Use whichever best suits your workflow.

Reversing a Client/Trust Payment

From the Client/Trust Cash Account

Navigate to:

Banking → Client/Trust → Select Account

or

Home → My Dashboards → Accountant Dashboard

Step 1 – Locate the Payment

Find the payment within the Cash Book Entries list.

Select the payment to open the transaction.

Step 2 – Reverse the Payment

Click Reverse.

Step 3 – Complete the Reversal

Enter the required information.

Click Reverse to complete the transaction.

Always enter a clear and meaningful Reason to support auditing and compliance requirements.

From a Matter

Navigate to:

Matter → Client/Trust Ledger

Step 1 – Open the Ledger

Select:

Cash Account → Ledger Entries

Step 2 – Locate the Payment

Find the payment to be reversed.

Click the Ledger icon.

Step 3 – Reverse the Payment

Click Reverse.

Complete the required information.

What Happens Next?

Once the payment has been reversed:

• the original payment is reversed
• the Client/Trust Ledger is updated immediately
• Matter balances are recalculated
• the reversal is recorded as a separate transaction for audit purposes

The original payment remains visible within the transaction history.

Reversing Payments in Prior Periods

When reversing a payment into an earlier accounting period, carefully review the Reversal Date before posting.

Use Ledger Locking to prevent transactions from being posted into closed or previously reported acccounting periods. This helps maintain the integrity of financial reports and prevents historical reporting from being unintentionally changed.

Best Practices

• Confirm you are reversing the correct payment before proceeding.
• Always enter a clear and descriptive Reason for the reversal.
• Use the Client/Trust Cash Account when correcting general payment transactions.
• Use the Matter view when reviewing or correcting Matter-specific payments.
• Review the Reversal Date to ensure the transaction posts to the correct accounting period.
• Follow your firm's approval and compliance procedures before reversing financial transactions.
• If the payment was entered incorrectly, create a new payment after completing the reversal using the correct details.