Overview

This guide explains how to cancel and refund unpresented or stale cheques across both Office and Client/Trust accounts.

A cheque becomes stale if it is not presented within 6 months of the issue date. In some cases, this may extend to 12–15 months, however the Accounts Team generally applies a 6-month standard.

Where a cheque becomes stale or remains unpresented, it must be cancelled and refunded appropriately depending on the cheque type.

Important Distinction

• Office Cheque
  Cancel in the Office Ledger → creates a credit in Office Credit Funds
• Client/Trust Cheque
  Cancel in the Client/Trust Ledger → funds must be re-issued from Client/Trust

Additional Note - Matter-Related Cheques

If the cheque is matter-related, it can be cancelled from multiple locations:

• Office Ledger(for Office cheques)
• Client/Trust Ledger(for Client/Trust cheques)
• Directly from the Matter

Quick Process Flow

1. Identify cheque type (Office or Client/Trust)
2. Confirm if the cheque is matter-related
3. Cancel cheque using the correct location:
   • Office → Office Ledger or Matter
   • Client/Trust → Client/Trust Ledger or Matter
4. Office only: Post Receipt to return funds to Office Credit Funds
5. Post Payment to refund client (if applicable)
6. Verify:  
   • Credit Funds / Trust Balance
     
   • Bank Reconciliation   

All actions are immediate and reflected in ledgers straight away. Always confirm details before posting.

Cancel Office Cheque (Return Funds to Office)

1. Access the Office Ledger

• Navigate to the Matter(or Office Ledger if preferred)
• Open the Office Ledger

2. Post Receipt

• Click Post Receipt
• Enter:
  • Received To Account
  • Received From
  • Receipt Method

3. Cheque Payment Method – Additional Step

If Cheque is selected as the Receipt Method:

• A separate cheque details screen will appear
• This screen must be completed before proceeding

Important: You can amend the Clearance Days to 0. This allows the funds to be treated as cleared immediately, and ensures a cheque can be re-issued without delay.

4. Enter Receipt Details

• Posting Date
• Reason
• Memo (if required)

5. Allocate the Receipt

• Select Add Allocation
• Enter:
  • Matter Number
  • Allocation Type
  • Amount

6. Complete the Receipt

• Click Post

Outcome

• Creates a Credit in Office Credit Funds
• Funds are returned to the Office Bank Account

Refund the Client (Office Funds)

1. Access the Office Ledger

• Navigate to the Matter
• Open the Office Ledger

2. Post Payment

• Click Post Payment
• Enter:
  • Pay From Account
  • Pay To
  • Payment Method

3. Enter Payment Details

• Posting Date
• Reason

4. Allocate the Payment

• Select Add Allocation
• Enter:
  • Matter
  • Allocation Type
  • Amount

5. Complete the Payment

• Click Post

Outcome

• Reduces Office Credit Funds
• Updates Bank Reconciliation

Cancel and Re-Issue Client/Trust Cheque

To cancel a Client/Trust cheque:

• Navigate to the Matter and open the Client/Trust Ledger
  or
• Access the Client/Trust Ledger from the main accounting area

Once accessed: Follow the same steps as outlined in the Office Cheque steps above

Key Differences

• The transaction is processed within the Client/Trust Ledger
• Funds remain within the Client/Trust account (not Office Credit Funds)
• After cancellation, the cheque must be re-issued from the Client/Trust account

Outcome

• Cheque is cancelled correctly within Client/Trust
• Funds remain in the Client/Trust balance
• Payment is re-issued accurately

Best Practices 

• Always confirm cheque status, cheque type, and whether it is matter-related before processing
• Use the most appropriate access point:
  • Matter (quick access)
  • Office Ledger
  • Client/Trust Ledger
• If using cheque as a receipt method, ensure cheque details are completed correctly
• Set Clearance Days to 0 where appropriate to avoid delays in re-issuing funds
• Ensure the correct Matter and allocation details are used
• Include clear Reasons to maintain a strong audit trail
• For Office Cheques, always verify Office Credit Funds after posting the receipt
• For Client/Trust Cheques, ensure cancellation and re-issue is completed correctly
• Always review Bank Reconciliation after posting payments
• Avoid delays — stale cheques should be addressed promptly
• Remember: All postings are immediate once confirmed