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Add and Manage Trust Transactions

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Make sure to add a memo for all trust transactions to keep a record of what the trust transaction is for.

Add a Trust Deposit Transaction

Learn how to add money to your trust ledger. An example of a trust deposit is receiving a retainer.

From Matter Page

  1. Click on the Matters Tab on the left-hand menu 
  2. Single-click on the matter you wish to work with
  3. Click Trust Deposit on the right-hand panel 

From Matter Details Page

  1. Click on the Matters Tab on the left-hand menu 
  2. To go to Matter Details, double-click on your desired matter or single-click on the matter and then click on the Details button on the top menu OR 
  3. On the Matter Details page, click the Banking tab 
  4. Click on Trust Transaction and select Deposit 

Complete Trust Deposit Form

  1. Type in the amount
  2. Select Type of Transaction
  3. Select Method of Transaction
  4. Enter Ref #, if Applicable
  5. Enter Payor Information
  6. Select the Trust Bank Account (if matter is related to more than one trust account)
  7. Enter Memo – Memo 2 is for internal record keeping if necessary (this step is recommended)
  8. Select Chart of Account if necessary
  9. Click Save

When recording internal operations (like correcting a mistake), we recommend you use the “Adjustment In” Transaction Type. 

Add a Trust Withdrawal Transaction

From Main Matter Page

  1. Click on the Matters Tab on the left-hand menu 
  2. Single-click on the matter you wish to work with
  3. Click Trust Withdrawal on the right-hand panel 

From Matter Details Page

  1. Click on the Matters Tab on the left-hand menu 
  2. To go to Matter Details, double-click on your desired matter or single-click on the matter and then click on the Details button on the top menu OR 
  3. On the Matter Details page, click the Banking tab 
  4. Click on Trust Transaction and select Withdrawal 

Complete Trust Withdrawal Form

  1. Type in the amount
  2. Select Type of Transaction
  3. Select Method of Transaction
  4. Enter Ref # or Check #, if Applicable
  5. Enter Pay To Information
  6. Select the Trust Bank Account (if matter is related to more than one trust account)
  7. Enter Memo – Memo 1 will print on your trust check if using check printing, Memo 2 is for internal record keeping if necessary (this step is recommended)
  8. Select Chart of Account if necessary
  9. Click Save

Which Chart of Account Do I Select?

When entering deposits, you have the option to select one of two accounts to record your transaction: 2300: Client Trust Funds (Current Liability) and 2310: Client General Retainer (Trust) (Current Liability). 

These are both liability accounts, however they can be used to separate out retainer funds versus third party funds (such as settlements, escrow, judgements, etc.). There is no requirement to differentiate for accounting purposes, but it can be used as more of a preference for law firms that wish to do so.

Locate Trust Transactions

From Accounting Tab

Go here if you’d like to see all trust transactions together by Bank Account – no matter which matter ledger they are related to.

  1. Click the Accounting Tab on the left-hand menu 
  2. Click on the Bank Tab 
  3. Double-Click on the Bank Account or Single-click on the bank account and click Details OR
  4. Under the Transactions Tab, you will see a full list of transactions for this bank account. Use the Search Filter on the right-hand side to locate transactions using various parameters.

From Matter Details

Go to the Matter Details screen if you want to locate all trust transactions for a single matter.

  1. Click on the Matters Tab on the left-hand menu 
  2. To go to Matter Details, double-click on your desired matter or single-click on the matter and then click on the Details button on the top menu OR 
  3. On the Matter Details page, click the Banking tab 
  4. Use the Search Filter to specify Trust Transactions (instead of operating), the specific bank account you’re looking for, and other parameters you may need 

Edit, Delete, or Void Trust Transactions

  1. First, locate your transaction. See above if you’re not sure how
  2. Select the transaction you wish to update
  3. Click the Edit or Delete Icon on the top menu
Note

You cannot edit an already posted or reconciled item.
You must either re-open your reconciliation or unlink this transaction from any invoices to continue.

Void a Trust Transaction

You may want to void a trust transaction, such as a bounced check and you’ll want to make sure you have a record of this voided transaction in CosmoLex.

  1. First, locate your transaction. See above if you’re not sure how
  2. Select the transaction you wish to Void, and click the Action Button on the top menu 
  3. Fill out the Void Transaction form
    • Memo – shows the original date of when the transaction was entered, the amount, and the ref# for the check.
    • Memo 2 – Put in a memo of why the transaction is being voided. (ex. Bounced check) 

  4. When ready, click Save

After you save, you will then see a void check and void adjustment, which means the transaction has been voided successfully and the trust balance for the matter has been adjusted.

Troubleshoot Void Trust Transaction

If you receive the message below when voiding a trust transaction, it means this transaction is related to an invoice payment and you would need to delete the deposit transaction that went into the operating account. Once this is deleted, the trust transaction will automatically be deleted and the funds will go back into the trust account.

Keep in mind that voided trust transactions will not show in reconciliation statements but will show on the trust ledger transaction report.

Internal Transfer of Trust Funds Between Matters

Updated on September 20, 2018

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