How to Delete or Reverse Checks, Payments, Trust Deposits, or Journal Entries

The following explains the best way to delete or reverse most transactions that touch the general ledger (G/L).

Index

• Direct Deletion of Records
• Reversing Client Payments
• Reversing Trust Deposits
• Reversing Whole Trust Checks or A/P Checks
• Partially Reversing Trust Checks Applied to Multiple Matters
• Reversing Journal Entries

Direct Deletion of Records

Deleting records altogether in Abacus Accounting is often the best option if the transaction was entered recently and was not posted in a batch with a large number of other postings, or the error touches every transaction in the posting batch (e.g. an incorrect date). However, deleting records comes with the following caveats:

1. The transaction must not be Billed (i.e. it has not appeared on a posted bill). This can apply to client payments, trust deposits, and trust checks.
2. If the transaction (such as a client payment or trust deposit) was posted in the same batch as other transactions, those transactions collectively were posted to the G/L as a SINGLE transaction. As a result, to delete the transaction on one matter, it must be deleted on ALL matters where it was posted, so that the G/L transaction can also be deleted. 
3. In addition, the following settings must be set within File > Setup > Company Preferences to be able to delete transactions:
4.  Allow Ledger Deletions must be checked.
5.  Accounting Method must be set to Cash. If it is set to Accrual, deletion is not available under any circumstances, and records can only be reversed (see below).
   
   
6. If the above are true, a Delete button is available from the Matter Billing Activity, Matter Trust Activity, and Journal Activity screens. Simply highlight the relevant record, and click Delete.
   
   

Reversing Client Payments

1. Enter a client payment for the same Payment Amount, Matter Number, and Deposit Accountas the original payment, but add a minus (-) in front of the Payment Amount. This will make it a negative client payment.
2. Do NOT enter a client payment for the same POSITIVE amount as your negative client payment and post it in the same batch as this one! Neither payment will post to your General Ledger.
3. Select No Invoice, Payment on Account.
4. Enter a Description that notates the purpose of the reversal.
5. Be sure to complete the Breakout and Fee Distribution tabs, matching them to the breakout and fee distribution on the original payment you are reversing.
   
6. If you need to verify the Fee Distribution, you can run the Timekeeper Cash Receipts report under Reports > Productivity for the date and matter number of the payment.
   
   
   
7. Before posting the payment, change the Deposit Date to the date of the original, incorrect payment.
   
   

Reversing Trust Deposits

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.
2. 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.
3. Enter a Description that notates the purpose of the reversal.
4. Before posting the deposit, change the Deposit Date to the date of the original, incorrect deposit.
   
   

Reversing Whole Trust Checks or A/P Checks

To reverse a trust or A/P check, you will need to void the check. View this article for more information on how to void checks: How to Void Checks

If you are reversing a trust check that withdrew money from multiple matters, the void will need to void the withdrawal on all matters.

If you need to re-enter the check afterward, re-enter it with the same details (except correcting whatever was incorrect), but add a .1 to the end of the check number. Abacus Accounting will not allow you to re-use the same check number, but this will allow the check to still be associated with the same check number when viewing your Check Register.

Partially Reversing Trust Checks Applied to Multiple Matters

If you need to reverse a transaction from a trust check that applied to multiple matters, but only need to reverse it on a small number of those matters and would prefer not to void the whole check, follow the instructions below.

1. Enter a trust deposit on each matter for the Amount of the withdrawal that you need to correct on that matter.
   
   
   
   
2. Before posting the deposit, change the Deposit Date to the date of the trust check.
   
   

Preventing a Reversal from Appearing on a Client's Bill

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

Reversing Journal Entries

1. Find the original journal entry within the Journal Activity window (G/L > Journal Activity).
2. Note the Journal # column. This will show both the number (e.g. 16) and the type (e.g. Gen).
   
   
   
   
3. Navigate to G/L > Reverse Journal Entry.
4. Enter the Journal Entry Number and Journal Entry Type that you previously found.
5. Click Reverse