Total Legal Accounting 3
SECTION 184.108.40.206 - THIRD PARTY CHEQUES
USAGE: To register a cheque that you have on-sent to a third party without first depositing in your bank accounts. You can also use this function to transfer a Securities Cheque to a third part.
DISCUSSION: There is no net effect on any balances unless you involve a Securities file. Beyond this, the transaction is purely documentary, however required by the Law Institute. Although possible, this function is rarely used for anything but Cheques.
When you start the THIRD PARTY CHEQUES program, T.L.A. initially asks you for a Trust file number. If you cannot remember the file number, press <F9> to initiate a search. T.L.A. will check that the code does not refer to a Trust file that is closed.
Typically, the screen will now look like this:
The file will be displayed with its corresponding Name, Address and Matter Re. Also the current Disbursement, Client and Trust balances are displayed on the left of the screen.
Next you must enter the details of the transaction. These fields are required by the Law Institute.
There are several fields to enter:
DATE RECEIVED This field defaults to today’s date (as per the date at the top right-hand-corner of your screen. You may change it to any valid date within the calendar (as defined in SECTION 7.1.6.) You may also return the date to today’s date by pressing <F1>. You should enter the date you actually received the Cheque.
RECEIVED FROM This is the name of the party you received the Cheque from. It is not necessarily the same as the DRAWER.
VALUE This is the value of the Cheque. This amount can be negative if you are reversing a previously incorrect entry.
PAYEE NAME This is the name of the party for whom the Cheque is for. The assumption is that you will actually pass the cheque onto that party
PAYMENT TYPE This defines the type of payment. Normally it is Cheque and this is by default a type Q.
DRAWER This is the name of the Drawer on the Cheque.
DESCRIPTION Here you enter the purpose of the Cheque, eg. SETTLEMENT.
REFERENCE This field will default to the last reference number you entered, plus one. Depending on your settings in SYSTEM DEFAULTS (see SECTION 7.1.2) you may be able to change it to a different, non-zero value. The largest value available is 999999.
DATE PAID-OUT This field defaults to today’s date (as per the date at the top right-hand-corner of your screen. You may change it to any valid date within the calendar (as defined in SECTION 7.1.6.) You may also return the date to today’s date by pressing <F1>. You should enter the date you actually transferred the Cheque to the PAYEE.
SEC & INV. This field is only required if the Cheque being transferred is either coming out or being paid into a Securities file. In this case, enter the code of that file here. If you cannot remember the code, press <F9> to initiate a search.
At each point, you may cancel the third party cheque by pressing <ESC>. However, it is possible to return to a specific field by using <CsrUp> or <F8>.
At the end of the THIRD PARTY CHEQUE you will be asked to confirm the update. This is the point of no return. Once you answer Y, T.L.A. will update all the relevant files. Up to this point you can cancel or modify the details. After you have updated the THIRD PARTY CHEQUE, you can only remove it by entering a negative THIRD PARTY CHEQUE i.e. the same entry but with a negative value.
Files updated by the Third Party Cheque program:
Client/Trust master-file: The last Trust transaction date is updated.
Client/Trust transaction file: Because of the large amount of information contained in this type of transaction, T.L.A. creates two entries in the transaction file, a Third Party Receipt and a Third Party Cheque. These cancel each other’s value and are always printed together in transaction reports.
Audit transaction-file: Each transaction creates a line in the Audit file, which can then be printed in the AUDIT TRAIL.