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Record a Voided Integrated Payment (CosmoLexPay, LawPay)

An integrated payment is a transaction initiated in CosmoLex, but processed through an integrated app such as CosmoLexPay or LawPay. These transactions are processed by the system in real-time, impacting bank balances almost immediately. 

Void vs. Refund

You can reverse an integrated payment in one of two ways, by voiding it or refunding it. A void is a reversal completed before the original transaction has settled. The transaction is voided before ever hitting your bank account. A refund is a reversal completed after the original transaction has settled (after the transaction was deposited into your bank account).

Note

CosmoLex refers to all reversals as “voids” . For simplicity, we will do the same in this article.

Voids can occur in a few ways:

  1. By initiating the void from CosmoLex
  2. By voiding the charge through the payment processing portal (not recommended)
  3. Automatically due to a NSF on an eCheck/ACH payment  

Initiating a Void In CosmoLex

If you need to initiate void a transaction, we highly recommend using the CosmoLex void feature. The system voids the entire transaction in real-time and automatically makes the corresponding accounting entries in your system.

Note

The CosmoLex void function cannot void a transaction in part. For partial voids, You must initiate the void from your payment portal, then follow the Recording a Partial Void instructions below. 

  1. Locate the transaction within Matter Details > Banking or from the Accounting > Bank > Transactions area. Integrated payments have a credit card or eCheck icon to the far left.
  2. Follow the steps to void based on the payment type:  
    1. For invoice payments 
    2. For trust retainer payments 

Recording a Completed Void

If a void/refund was initiated in your LawPay/CosmoLexPay portal, or was processed automatically by the payment processor, you will want to record the void/refund within CosmoLex without issuing an additional refund. Your options for recording the void in CosmoLex depend on whether the refund was in full or in part, and whether you use CosmoLexPay or LawPay.

Recording a Void in Full

Initiated by CosmoLexPay

You may use CosmoLex’s void feature to record these transactions. The system will recognize that a full void was already initiated and allow you to proceed for recordkeeping only. 

  1. Locate the transaction within Matter Details > Banking or from the Accounting > Bank > Transactions area.
  2. Follow the steps to void based on the payment type:  
    1. For invoice payments 
    2. For trust retainer payments 

Initiated by LawPay

Note

If you attempt to use the void transaction feature for a refund initiated through the LawPay portal, you will receive the prompt “Transaction Previously Voided: The operation cannot be completed in the current status” To record this void, follow the instructions below.

If  the transaction is an invoice payment: 

    1. Unlink the payment from the invoice.
    2. Issue a credit memo to document the voided transaction. 
      1. Enter the same amount as the refund transaction.
      2. From the Type field’s drop-down, click Wire/ACH-Out.
      3. From the Method field’s drop-down, click Wire Transfer.
      4. In the Memo field, enter Voided/Refunded Transaction in LawPay/CosmoLexPay, or something similar. 

If the transaction is a trust deposit: 

    1. Edit the original trust retainer transaction 
      1. Leave all information on the original transaction alone, except for the Memo field
      2. In the Memo field enter Void/Refund transaction in LawPay/CosmoLexPay on xx/xx/xx, or something similar
    1. Enter a trust withdrawal on the matter to document the voided transaction
      1. Enter the same amount as the original transaction.
      2. From the Type field’s drop-down, click Wire/ACH-Out.
      3. From the Method field’s drop-down, click Wire Transfer.
      4. In the Memo field, enter Void Transaction original date xx/xx/xx, Ref# xxxx, or something similar. 

Recording a Partial Void

CosmoLexPay or LawPay

If the transaction is an invoice payment: 

      1. Enter the same amount as the partial refund transaction.
      2. From the Type field’s drop-down, click Wire/ACH-Out.
      3. From the Method field’s drop-down, click Wire Transfer.
      4. In the Memo field, enter Voided/Refunded Transaction in LawPay/CosmoLexPay, or something similar. 
    1. Re-apply the non-refunded portion of the payment to the invoice 
      1. From the Invoice Payment Using drop-down, click Existing Operating Retainer
      2. For the Date, make sure you use the date of the original payment on the invoice
      3. Select the invoice to be paid
      4. Click on the pencil icon to the right of the invoice enter the Amount to be applied

If the transaction is a trust deposit: 

    1. Edit the original trust retainer transaction 
      1. Leave all information on the original transaction alone, except for the Memo field
      2. In the Memo field enter Partially Voided – $xxxx on xx/xx/xx, or something similar
    1. Enter a trust withdrawal on the matter to document the partial void
      1. Enter the same amount as the original transaction.
      2. From the Type field’s drop-down, click Wire/ACH-Out.
      3. From the Method field’s drop-down, click Wire Transfer.
      4. In the Memo field, enter Partial Void of Transaction original date xx/xx/xx, Ref# xxxx, or something similar. 
Updated on September 14, 2021

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