The initial balance on an owner statement will always be the ending balance from the previous month. If the amount is not what you expect, follow the information below to understand the balance and pay it out if needed.
Understand the balance
Check the previous statement for the following items that can go into the initial balance:
- A new transaction
- A manual entry
- Reservations that were re-processed through a new version of the Business Model
There are many scenarios that can explain why the initial balance is not as expected.
Pay out the balance
To start with an initial balance of zero ($0), record a payout for the ending balance amount, with a recognition date on the last day of the previous month.
For example: You would like to start March with a zero balance. Record a payout for February's ending balance amount with the recognition date of February 28.
Once the payment is recorded, regenerate the owner statement.
What to do if the initial balance is negative
If there is a negative amount in the initial balance, this means that the owner owes money to the PMC.
To zero out the initial balance when it is a negative amount, add a transaction from the Posting Journal, selecting transaction type "Payment from owner". The amount should equal the negative amount that currently appears in the Owner Statement as the initial balance. The recognition date should be on the last day of the previous month.
For example: You would like to start March with a zero balance. Record a payment from owner for February’s ending balance amount with the recognition date of February 28.
Once the transaction is added, regenerate the owner statement.
