When reviewing receivables in your Kolleno dashboard, you may notice that the Net Balance displayed does not match the simple sum of Balance Due + Balance Overdue. This is expected and is due to the way Net Balance is calculated.
How is Net Balance Calculated?
Net Balance is designed to reflect the collectible amount after factoring in credits and adjustments.
Example:
Gross A/R (Balance Due + Balance Overdue) = 1,000 + 2,000 = 3,000
Net Balance shown = 2,500
Difference = 3,000 − 2,500 = 500
That difference comes from the total impact of credits, prepayments, and adjustments.
Why Doesn’t Net Balance Equal Balance Due + Balance Overdue?
Balance Due/Overdue: Show the gross value of open invoices.
Net Balance: Adjusts this value by subtracting customer credits (credit notes, overpayments, prepayments) and adding any journal entries.
This ensures Net Balance reflects the true collectible amount.