Use this process to reverse a payment that was applied to an invoice in error, or to dishonour a tenant's payment that has bounced. Both actions are managed from the bank statement or invoice in your Client/Trust Account.
Reversing a Receipt
Open the invoice and click the Less Payment link.
Click the Reconciled link to open the bank statement containing the original payment (highlighted in blue).
Click Dishonour or Unreconcile. If Unreconcile is greyed out, the ledger has insufficient funds to reverse.
Under Unreconcile This Transaction?, enter a reason and click the red Unreconcile and Reverse This Transaction button.
The bank statement will show the transaction as unreconciled and the invoice as unpaid. To re-reconcile, return to Client/Trust Accounts and select the unreconciled transaction.
Note: Do not use the orange Unreconcile This Transaction button — it removes the reconciliation link only, without reversing the payment or marking the invoice as unpaid.
Dishonouring a Tenant's Rental Payment
In Bank Statement Reconciliation, find the dishonoured payment entry on the left and click Dishonour.
A list of matching payments appears — click the correct entry to dishonour it.
This reconciles, reverses, and marks the payment as dishonoured.
Note: If both the original deposit and the dishonour withdrawal appear in the same bank statement, record the deposited funds first before processing the dishonour.
In Asia-Pacific, "Trust Account" is standard; European customers use "Client Account". Client/Trust Accounting does not apply to North American customers. For more information, see our Glossary of Regional Terminology.