Types of Trust Accounting Transactions
There are a limited number of trust accounting transactions possible. The Codes listed below will appear in your Trust Register.
It is important to be aware of what each transaction type means and is used for as they represent the basic building blocks of your trust accounting system.
Each transaction in your Trust Accounting system records money coming from somewhere and to somewhere. These are listed in the From and To columns.
TODO: make a block diagram / flowchart of these.
| Name | Code | Description | From | To | Created On |
|---|---|---|---|---|---|
| Trust Receipt | REC | Money is received in trust from a Client (or other contact on behalf of a Client). This represents money entering your Trust Accounts. This money is recorded directly in the appropriate Trust Bank Account, or in Undeposited Funds (for cash and cheques). | Client 3rd Party | Trust Bank Account Undeposited Funds | Trust Receipt Page |
| Bank Deposit | DEP | Cash and cheques received in trust from a Client (or other contact on behalf of a Client) are transferred from Undeposited Funds to the actual Trust Bank Account. This represents someone physically banking monies at the end of the day. You can also use this type of transaction to record and clear credit card activity for each day (to make reconciliation of merchant statements easier). | Undeposited Funds | Trust Bank Account | Bank Deposit Page |
| Trust Cheque | CHQ | Money is used to pay for disbursements / outlays as part of a particular Matter. They are paid to a 3rd party contact. This represents money leaving your Tust Accounts. Transit monies (such as Stamp Duty) are paid using this transaction. Money refunded to Clients at the close of a matter are paid using this transaction. Payments to your own Firm can be made using a Trust Cheque if you are not using the General Accounting module. | Trust Bank Account | 3rd Party | Write Trust Cheque Page |
| Matter Transfer | MTR | Trust funds are transferred from one matter to another. | Trust Bank Account | Same Trust Bank Account | Matter Transfer Page |
| Bank Transfer | BTR | Trust funds are transferred from one Trust Bank Account to another. This may be transferring money from a Controlled Trust Account to General Trust. It can also represent deposits or withdrawals from the Firm's Special Deposit Account (if you process them manually). | Trust Bank Account | Different Trust Bank Account | Bank Transfer Page Special Deposit Page |
| Reconciliation Adjustment | ADJ | An adjustment to a Trust Bank Account made as part of a bank statement reconciliation. | Trust Bank Account | Same Trust Bank Account | Bank Reconciliation Page |