Welcome to our latest video blog as we explore reversing trust to general (Office) transfers and invoices in Leap Legal Canada
Transcript
0:00 Hi, this is Celine at CHOPS Consulting and this video is on reversing a transaction that’s been a trust to general transfer as well as reversing a, an invoice.
0:13 So basically we’re just going to start by creating some sort of new random invoice to show you. You can see that this fake matter has a lot of access.
0:25 So we’ve got this invoice, it’s got something random, it’s got an email, it’s got a test disbursement. It doesn’t really matter.
0:32 It’s just for the sake of basically reversing this invoice. So just as a quick reminder, if an invoice is in draft either stage, you can just delete it once it’s been finalized.
0:44 Well I haven’t saved it yet, but once it’s been finalized and saved, you can’t delete it. You can only reverse it.
0:51 So what reversing means is basically just that where do we have a reversal here? Here we go. It’s kind of like being deleted, it just, that it still just shows that it’s been reversed.
1:08 Okay, so we have an invoice. If we want to reverse it without any payment applied, it’s super easy. We just hit reverse.
1:16 But let’s pretend that we have done a trust to receivables or trust to general transfer here. So we’ve applied money from trust probably some sort of electronic transfer.
1:32 Doesn’t matter too much. And we’re just going to do it for the most recent invoice. Save and close. And we’ve got two references here.
1:45 One is the money coming out of trust. So from trust to our general account. And the other reference is coming, is the money into the general account.
1:54 So there’s there’s going to be a journal item on your trust account of the money coming out. And an item on your general account of the money coming in.
2:01 So you don’t need anything here, just save and close. And now we have the payment that’s been applied to invoice 78.
2:10 So if you were to try to reverse invoice 78 itself, as you may already know what’s going to happen is you are going to get an error popping up.
2:21 When you try to stay in the event that says you can’t reverse it, this invoice has unreversed transactions. Essentially, you cannot delete an invoice that you’ve already received payment to because you’ve received the payment makes sense.
2:36 So if you had taken a direct payment, like you received payment directly to general, you would just reverse this payment here.
2:45 And you’re going to reverse this payment anyway, what you do is you just open the payment and the reverse arrow.
2:53 And then it’s going to show the amount in brackets down here, out of balance zero, so it’s been reversed. The amount is coming up.
3:03 And then it gives you also warning here because this part of the office or trust to general transfer. You also need to reverse the payment out of trust.
3:12 So you look here there’s the invoice, there’s the payment made, there’s the payment reversed, and the balance is back to what it was before.
3:22 The other thing that you need to do is you need to go into your trust. And you also need to reverse this payment here.
3:28 When you reverse the receipt of the payment in general, it doesn’t. Automatically reverse the payment out of trust. So then you’re going to have you’re going to have a different balance here.
3:39 So what you’re going to want to do is you’re going to also want to go to the corresponding payment in trust.
3:44 And you’re going to want to reverse that one as well. Save and close. And now this payment has also been reversed.
3:54 Once you’ve reverse all this payment. Then feel free to reverse the original invoice. And you can save and close Leap Legal Canada. And now it’s as if nothing ever happened, except for there’s just a record of it for compliance.
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