Reversing Trust Deposits

If the trust deposit has not been posted, you can just delete the entry on the Trust Deposits window (Trust > Trust Deposits).

NOTE: To be able to delete transactions, Allow Ledger Deletions must be checked and Accounting Method must be set to Cash in Company Preferences.

However, if the trust deposit was posted, follow these steps to reverse the entry.

1. Enter a trust deposit for the same amount, matter number, and trust account as the original trust deposit, but add a minus (-) in front of the amount. This will make it a negative trust deposit.
   
   NOTE: Do NOT enter a trust deposit for the same POSITIVE amount as your negative trust deposit and post it in the same batch as this one! Neither deposit will post to your General Ledger.

2. Enter a description that notates the purpose of the reversal.

3. Before posting the deposit, change the deposit date to the date of the original, incorrect deposit.

TIP: If you would like to prevent a reversal from appearing on the client's next invoice, edit the reversal transaction and change the Billing Status to Billed.