Those located in Asia-Pacific will use the term Trust Account, where customers located in Europe will use the term Client Account. For the purpose of this article, we will refer to it as a Trust Account. For more information on regional terminology, refer to this article or contact support.
The main reason for there being a difference between the closing balance on the Separate balances statement for each ledger - commercial(owner statement) and the ledger balance will be due to a cross-ledger allocation.
A cross-ledger allocation is when a credit note in relation to one ledger has been allocated against an invoice in relation to a different ledger. Re-Leased is not a double-entry system. If you perform this type of allocation, it will not physically move the funds between ledgers. The debtor position will be correct but the ledger position will be incorrect.
It is good practice to reference the ledger balance when forming your owner statements. You can reference this via the Ledgers report found under Reports > Client Accounting, or via the Client Accounts screen under the Rental ledger balance.
If you have come across a discrepancy, you will need to search your owner statement to find that difference. The best way to do this is to check any credit notes that have been allocated and are showing as paid on the owner statement. You will need to check the ledger that is attached to them and where they have been allocated against. Quite often if you have only two ledgers then the difference will apply to both owner statements (one for each ledger).
To correct the discrepancy, you should reverse the cross-ledger allocation. You would need to click into the credit note, click into 'less allocation' and delete the allocation of that credit note against the invoice.
If your owner statement has already been finalised and sent out to the owner, the next statement will have a reverse discrepancy. So if the owner statement shows a closing balance that is £100 too much, the next statement will show a closing balance that is £100 less - effectively they cancel each other out. Moving forward the balance will be correct.
If you would like to know more on how to correctly allocate a credit note in relation to one ledger against an invoice in relation to another ledger, please see below Knowledge Base article: