For our Asia-Pacific customers, the term "Trust Account" is used, while European customers refer to it as "Client Account". It's important to mention that the Client/Trust Accounting functionality does not apply to customers in North America. For further information on regional terms, check out our Glossary of Regional Terminology.

Setting up Bank Adjustments

Step 1: Enable Adjustments in Company Settings

To begin using bank adjustments, you need to enable the feature in your company settings:

1. Navigate to Settings.
2. Under Manage Companies, select your company.
3. Scroll down to the Optional Features section.
4. Locate the option Allow trust account bank adjustments and set it to Yes.
5. Click Save to confirm your changes.

Step 2: Select the Adjustments Report

After enabling adjustments in the company settings, you’ll need to configure the adjustments report in your Trust/Client Account settings:

1. Go to Settings and navigate to the Trust/Client Accounts section.
2. Select the relevant Trust/Client Account.
3. Scroll down to the Close of Period section.
4. Select the Unpresented Bank Adjustments Report.
5. Click Save to apply the changes.

Next Steps

Once the adjustments feature is activated, you’re ready to manage bank adjustments during the reconciliation process. This ensures your Client/Trust Account records align with your bank statements, improving the accuracy and reliability of your financial data.

Reconciling to Adjustments

Follow these steps to reconcile a bank transaction as an adjustment:

1. Navigate to the Bank Reconciliation page.
2. Locate the transaction on your bank statement that needs to be adjusted.
3. Click Find and Match.
4. Select Create Adjustments.
5. The transaction will now be marked as an adjustment and reconciled.

Where Are Adjustments Reflected?

Once reconciled, adjustments will appear in the following reports and sections:

• Bank Trust Account Reconciliation Report – Adjustments will be listed as part of your reconciliation details.
• Unpresented Adjustments Report – This report contains all adjustments that have not yet been cleared.
• Bank Adjustments – You can view all adjustments by selecting the Bank Adjustments link available in the Balances section on the Client/Trust Account home screen.

Unreconciling an Adjustment

To unreconcile a bank adjustment, follow these steps:

1. From the Client/Trust Account home page, go to the Balances section.
2. Select Bank Adjustments.
3. In the list of bank adjustments, locate the relevant transaction.
4. Click the Audit ID link for the adjustment. This will display the corresponding transaction on the bank statement.
5. Select Unreconcile.

Once you've completed these steps, the transaction will now be available to reconcile again.

Maintaining compliance with trust accounting regulations requires careful handling of trust account funds. In many jurisdictions, the use of a Suspense Ledger is not considered appropriate, as trust monies must be recorded in separate ledgers for each customer. Trust account receipts may also be required to include specific payer and property details, which means unidentified funds cannot typically be accepted.

To support compliance, we recommend using the Bank Adjustments feature as an alternative to the Suspense Ledger.

As compliance requirements vary by location, we encourage you to confirm your practices with your auditor or relevant regulatory authority.