Definitions of ledger balance terms
Operating Balance - This is the funds available to pay bills and distribute to owners.
Operating Balance = cash balance − security deposits not covered by escrow balance − prepayment − liabilities.
- Cash Balance - Net of non-escrow bank accounts.
- Escrow Balance - Net of bank accounts marked “Tracked as Escrow”.
- Payables - Sum of all unpaid bills.
- Receivables - Sum of all unpaid lease charges.
- Security Deposits - Net of liability accounts marked “Tracked as Security Deposit”.
- Prepayment - Net of liability accounts marked “Tracked as Prepayment”.
- Liabilities - Net of all other liability accounts.
- Undeposited - Sum of all undeposited or unsettled lease payments, owner contributions and other payments.
Unsettled are electronic payments that have not funded to the operating bank account yet. For example, if a tenant makes an eCheck payment on a Monday the payment will typically settle on Wednesday. This means that the tenant payment is unsettled until Wednesday.