Manage Trust Safeguards
Employ the inherent trust safeguards to guarantee compliance with each recorded transaction. Nevertheless, be aware that there are specific safeguards that you have the option to override.
Caution: Activating these override options will result in the system no longer generating the corresponding warning messages. It is strongly advised to restore any of these settings once the necessary transactions have been completed.
When it becomes necessary to record an overdraft for accurate record keeping, you have two areas where you can enable this feature to override this safeguard:
- Matter
- Bank
Allow a Negative Ledger Balance
The built-in safeguards are designed to prohibit negative trust ledger balances.
Here’s an example of the warning the system generates when a transaction is likely to lead to a negative trust ledger balance:
Negative Balance Allowed – Matter Level
To allow a negative ledger balance:
1. While viewing the relevant matter, click on the matter’s Settings.
2. From the tabs atop the Settings section, click Accounting.
3. Check the box next to Negative Balance Allowed. By doing so, negative account balances will be permitted for this particular matter.
Negative Balance Allowed – Existing Bank Account
To allow a negative ledger balance:
- From the left navigation panel, click Banking.
- Click the three dots located to the right of the Trust account, and then choose the Edit option.
- Scroll down to view the Trust Safeguard options.
- Check the box to the left of the Negative Balance Allowed.
- Scroll up, and click Save. Negative balances are allowed for this bank.
- An icon appears on the left of the bank’s row, signifying that matters associated with this bank account now have the option to permit a negative ledger.
Negative Balance Allowed – New Bank Account
To allow a negative ledger balance:
- From the left navigation panel, click Banking.
- In the top right, click on +Add Bank.
- Choose Trust from the Bank Type options, and input the Bank Name, Account Name, and any additional information.
- Scroll down to view the Trust Safeguard options.
- Check the box to the left of the Negative Balance Allowed.
- Scroll up, and click Save. Negative balances are allowed for this bank.
- An icon appears on the left of the bank’s row, signifying that matters associated with this bank account now have the option to permit a negative ledger.
Duplicate Check Numbers Allowed for Your Trust Account
This is the warning the system produces for duplicate check numbers:
To allow duplicate check numbers in your trust account:
- From the left navigation panel, click Banking.
- Click the three dots located to the right of the Trust account and then choose the Edit option.
- Scroll down to view the Trust Safeguard options.
- Check the box to the left of the Duplicate Check # Allowed.
- Scroll up, and click Save.