Ledger Balances

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.