Possible Reasons for Variances Between the Balance Sheet and Prepaid/Delinquent Summary Reports
Prepaids May Need to Be Applied
- If there are any Open ("Posted" or "Partially Paid") deposits and/or credits that can be applied to an Open ("Posted" or "Partially Paid") charge, the user can run prepaids to apply them.
- Navigate to Accounting > Receivables > Deposits & Payments.
- Select the "Apply Prepaids" button.
- In order to move any Open Credits (Credits added using a charge code) to an Open charge that used a different charge code, they will need to select the box next to "Enable Cross-Apply Credits". This is not allowed in all states.
- Select the "Yes, Apply Prepaids" button.
Adjustment Journal Entries May Need to Be Reversed
- To see "Adjustment" Journal Entries for the GL that is out of balance:
- Navigate to: Accounting > GL > Journal Entries.
- Filter your date range to include the dates where the variance could have taken place. You may need to review previous financials to see when the variance began.
- Select "Adjustment" from the "Type" dropdown.
- Search for the GL number or name where the variance occurs.
- This is where you will see all manually entered Journal Entries the user entered. In some cases they meant to post this temporarily to turn in previous financials and meant to create a reversing Journal Entry. You can provide the list to the client to have them review the transactions for accuracy.
Balancing Variance Between Accounts Receivable and Prepaid GLs
- If the net variance between the Prepaid Summary (PP) and Delinquent Summary Aging (AR) report is 0.00, then an adjusting Journal Entry might be needed between the two GL's.
- For example, if the variance between the Balance Sheet and the Prepaid Summary report is $50.00 and the variance between the Balance Sheet and the Delinquent Summary Aging (AR) report is ($50.00), the client might need to enter a Journal Entry between the AR GL and the PP GL for $50.00.
- Adjustment Entry:
- DR PP GL $50.00
- CR AR GL ($50.00)
Deposit May Not Be Fully Applied due to Rounding
- You may see a deposit amount does not get fully applied to a charge resulting in a credit balance where there should not be.
- In this instance, you will see .01 and $1.00 rounding variance.
- These currently require submitting a ticket via the Contact Us form above, since the UI does not allow the remainder to be manually allocated.
- An enhancement is planned to enable the system to solve for this instance.
Past Owner Accounts May be Excluded
- Another common user oversight is if Past Owner are omitted from the Prepaid Summary (PP) and/or Delinquent Summary Aging (AR) reports.
- Smartwebs allows users the option to Exclude Past Owners from Reports (navigate to the Report > More options).
- Users might have selected this option, to exclude past owners from their reports, which will cause a variance to the Balance Sheet, since the Balance Sheet shows all transactions, regardless of owner status (past or current).
- To reconcile the variance, create a report copy without excluding past owners.
Variances Between Homeowner Ledgers and AR/PP Reports
- To determine if there are variance between the Homeowner Ledger(s) and Prepaid Summary (PP) and/or Delinquent Summary Aging (AR) reports.
- Export the homeowner grid (including Past Owners).
- Generate the AR and/or PP reports to export to Excel.
- Copy the reports into new worksheets in the homeowner export and do vlookups between the three spreadsheets to locate accounts where the ledger balance does not match the report balance.
Note: Linked is an aid you may use to help you reconcile your Accounts Receivable (AR) and Prepaids (PP) reports against your Balance Sheet: Reconciling AR_PP_vs_Balance_Sheet