A question that comes up regularly — especially from firms transitioning from another practice management system — is why the trust bank reconciliation shows unreconciled transaction adjustments at month end, and why a receipt can carry two different dates. Both are a direct result of how Law App applies the trust accounting rules that apply in your state or territory. Every Australian jurisdiction requires the same two dates on every trust receipt.
The Two Dates on a Trust Receipt
Your state or territory’s trust accounting rules require two separate pieces of date information on every trust receipt.
Issue Date — The date the receipt was created: the date someone at the practice sat down and processed it in Law App. This must always be today’s date. A receipt cannot be backdated.
Received Date — The date the money was actually received by the practice. For direct deposits, this is the date the practice first received notice or confirmation of the deposit from the bank.
Every Australian jurisdiction uses the same requirement — the receipt must record “the date the receipt is made out and, if different, the date of receipt of the money.” Where the two dates differ, both must be recorded. The issue date is never backdated to match the received date.
Uniform Law jurisdictions — NSW, VIC and WA share the same national rule:
- Legal Profession Uniform General Rules 2015, Rule 36 (NSW, VIC, WA)
Other jurisdictions — each has their own legislation with the same requirement:
Why This Creates Unreconciled Transaction Adjustments on the Bank Rec
Because receipts must carry today’s date as the issue date, a payment that arrives on the last day of the month but is not receipted until the following day will be receipted in the new month — even though the funds are already in the bank.
This creates a timing difference that appears on the bank reconciliation as an unreconciled transaction adjustment at month end.
Unreconciled transaction adjustments at month end caused by receipts processed after month end are correct — this is not an error in Law App. They will clear off the reconciliation in the following month once the receipts are processed.
The trust bank reconciliation in Law App shows:
- Bank closing balance — the actual balance per the bank statement at month end
- Cashbook balance — the balance based on receipted transactions only
Where funds have been received by the bank but not yet receipted, the cashbook balance will be lower than the bank balance. Those unreconciled transaction adjustments clear off once the receipts are processed in the following month. This is the standard trust accounting position across all Australian jurisdictions.
A Practical Example
| Date | Event |
|---|---|
| 30 April | Client direct deposits funds into the trust account |
| 30 April | Bank statement shows the deposit |
| 1 May | Practice becomes aware of the deposit and processes the receipt in Law App |
| 1 May | Receipt is issued — issue date: 1 May, received date: 30 April |
At 30 April, the bank rec will show the deposit as an unreconciled transaction adjustment. This is correct. The receipt clears it off in May.
Summary
| Term | What it means |
|---|---|
| Issue date | The date the receipt was created — always today, never backdated |
| Received date | The date the money was received or bank notification was received |
| Unreconciled transaction adjustment | Normal and correct — clears in the following month once receipts are processed |
Further Information
View the legislation directly on AustLII:
- NSW, VIC, WA: Legal Profession Uniform General Rules 2015, Rule 36
- QLD: Legal Profession Regulation 2017, s34
- SA: Legal Practitioners Regulations 2014, reg 20
- ACT: Legal Profession Regulation 2007, s38
- NT: Legal Profession Regulations (No 9 of 2007), reg 42
- TAS: Legal Profession Regulations 2018, reg 28
For questions about trust accounting in Law App, contact the support team:
support@lawsupport.com.au | 07 3040 3036
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