I have been entering Trust Receipts in LEAP with the Payor as PEXA and then the description being 'Purchaser's Equity', etc with the PEXA reference number beside it. When I enter payments made through PEXA I select PEXA as the Payor and enter the BSB and account number that goes with it. I enter a description of 'Settlement Funds' for larger amounts but for smaller payments just tend to enter 'PEXA Funds' as I do not know exactly what these payments are for. My method of entering receipts and payments has never been questioned (even by Trust Auditors) up until now, but I have just been advised it is incorrect. Instead if the purchaser is transferring money via PEXA into our law firm's trust account, I am advised that person or entity's name be on the Trust Receipt as the Payor and the PEXA reference just be listed in the description. Likewise with trust payments, should these also have the vendor's name as the Payee, not PEXA. If the above method is correct, I am assuming that some of the smaller payments may be made for other reasons such as to pay outstanding bills such as Council rates etc. Should the solicitor be supplying me (the bookkeeper) with a PEXA document every time funds go in or out of our trust account? As the bookkeeper I do not have any familiarity with the matter and am just looking for the most efficient and correct way to record these transactions. Many thanks for your assistance.
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