{"id":150697,"date":"2026-10-04T12:53:05","date_gmt":"2026-10-04T12:53:05","guid":{"rendered":"https:\/\/docs.daftra.com\/tutorial\/%d9%84%d9%85%d8%a7%d8%b0%d8%a7-%d9%8a%d8%ae%d8%aa%d9%84%d9%81-%d8%b1%d8%b5%d9%8a%d8%af-%d8%a7%d9%84%d8%b9%d9%85%d9%8a%d9%84-%d9%81%d9%8a-%d8%a7%d9%84%d8%aa%d9%82%d8%a7%d8%b1%d9%8a%d8%b1-%d8%b9%d9%86\/"},"modified":"2026-10-15T07:43:18","modified_gmt":"2026-10-15T07:43:18","slug":"why-does-the-clients-balance-in-reports-differ-from-the-net-result-of-invoices-minus-payments","status":"publish","type":"tutorial","link":"https:\/\/docs.daftra.com\/en\/tutorial\/why-does-the-clients-balance-in-reports-differ-from-the-net-result-of-invoices-minus-payments\/","title":{"rendered":"Why Does the Client’s Balance in Reports Differ from the Net Result of Invoices Minus Payments?"},"content":{"rendered":"
\n

This guide covers the cases in which a client’s balance appears in reports with a value different from the expected result of subtracting the total payments from the total invoices during a specific period, and explains how the balance is calculated in each report, and the steps to reconcile the balance and determine the cause of the difference.<\/p>\n

An Illustrative Example<\/h2>\n

When extracting a report for one of the clients, say “Example Trading Company,” for the period from September 1 to September 30, the following data appeared:<\/p>\n\n\n\n\n\n\n\n\n
Item<\/th>\nAmount<\/th>\n<\/tr>\n
Total invoices issued during the period<\/td>\n50,000<\/td>\n<\/tr>\n
Total payments during the period<\/td>\n40,000<\/td>\n<\/tr>\n
The expected balance (50,000 \u2212 40,000)<\/td>\n10,000<\/td>\n<\/tr>\n
The balance shown in the report<\/strong><\/td>\n8,500<\/strong><\/td>\n<\/tr>\n
The difference<\/strong><\/td>\n1,500<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The result of subtracting payments from invoices isn’t the client’s balance, since the balance shown in reports includes, in addition to the period’s invoices and payments, the following items:<\/p>\n

    \n
  1. The client’s balance before the start of the period<\/strong> (the beginning-of-period balance).<\/li>\n
  2. Refund invoices and credit notes<\/strong> issued during the period.<\/li>\n
  3. Other movements recorded on the client’s account<\/strong>, such as the opening balance, manual entries, received cheques, advance payment settlements, and point of sale sessions.<\/li>\n<\/ol>\n

    Since the balance shown in the report is less than the expected result by 1,500, this indicates amounts in the client’s favor of the same value, and this is usually due to one of the following reasons:<\/p>\n\n\n\n\n\n\n
    Possible Cause<\/th>\nHow It Appears<\/th>\n<\/tr>\n
    The client had a credit balance before the start of the period (an overpaid amount, an advance payment, or a negative opening balance)<\/td>\nThe beginning-of-period balance appears as \u22121,500<\/td>\n<\/tr>\n
    A refund invoice or credit note was issued during the period<\/td>\nA refund or credit note line appears among the period’s movements<\/td>\n<\/tr>\n
    A received cheque, a manual entry, or an advance payment settlement was recorded on the client’s account<\/td>\nAn entry line appears among the movements, and doesn’t appear as a payment on the invoice<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    The correct formula for calculating the balance is: beginning-of-period balance + invoices \u2212 payments \u2212 returns and credit notes \u00b1 other movements = end-of-period balance<\/strong>. If the beginning-of-period balance is \u22121,500, the balance is: \u22121,500 + 50,000 \u2212 40,000 = 8,500, which is the balance shown in the report.<\/p>\n

    How the Balance Is Calculated in Each Report<\/h2>\n\n\n\n\n\n\n\n\n\n\n\n
    Report<\/th>\nBasis of Calculation<\/th>\nNotes<\/th>\n<\/tr>\n
    Account Movement<\/strong> (a tab in the client page)<\/td>\nInvoices, payments, returns, notes, and the client account entries<\/td>\nStarts with the Beginning-of-Period Balance<\/strong> line and ends with the End-of-Period Balance<\/strong> line, and it is the most suitable report for reconciliation.<\/td>\n<\/tr>\n
    Account Statement<\/strong> (a button in the client page)<\/td>\nThe same movements<\/td>\nDoesn’t include a date filter, and shows the cumulative balance from the start until today’s date.<\/td>\n<\/tr>\n
    Client Balances<\/strong><\/a><\/td>\nThe accounting entries recorded on the client’s account<\/td>\nShows the balance in detail in the following columns: Balance Before<\/strong>, Total Sales<\/strong>, Total Returns<\/strong>, Net Sales<\/strong>, Total Payments<\/strong>, Adjustments<\/strong>, Balance<\/strong>.<\/td>\n<\/tr>\n
    Clients Account Statement<\/strong> (within the sales reports)<\/td>\nThe accounting entries<\/td>\nStarts with the Balance Before<\/strong> line, shows all the entries recorded on the client’s account, and requires the permission to view entries.<\/td>\n<\/tr>\n
    Client Sales<\/strong><\/a><\/td>\nInvoices according to the invoice date<\/td>\nShows sales only, and doesn’t show the balance.<\/td>\n<\/tr>\n
    Client Payments<\/strong><\/a><\/td>\nPayments according to the payment date<\/td>\nShows payments only, and doesn’t include received cheques.<\/td>\n<\/tr>\n
    Debt Aging (Ledger)<\/strong><\/a><\/td>\nThe balance of entries up to a specific date<\/td>\nShows the total balance distributed over the delay periods.<\/td>\n<\/tr>\n
    Debt Aging (Invoices)<\/strong><\/a><\/td>\nThe amount currently remaining on each invoice<\/td>\nDepends on the current status of the invoices, not on a past date.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    Steps to Reconcile the Balance<\/h2>\n

    Step One: Review the Account Movement for the Period<\/h3>\n
      \n
    1. Open the client page, then go to the Account Movement<\/strong> tab.<\/li>\n
    2. Set Period From<\/strong> 1\/9 To<\/strong> 30\/9, then enable the Show Details<\/strong> option.<\/li>\n
    3. Review the first line Beginning-of-Period Balance<\/strong>; if its value is \u22121,500, the cause of the difference is a balance in the client’s favor before the start of the period.<\/li>\n<\/ol>\n

      Step Two: Review the Client Balances Report<\/h3>\n

      If the beginning-of-period balance is zero, follow this:<\/p>\n

        \n
      1. Open the Client Balances<\/strong><\/a> report.<\/li>\n
      2. Choose the client, the period from 1\/9 to 30\/9, select all branches, then enable the View Details<\/strong> option.<\/li>\n
      3. Compare the columns as follows:\n
          \n
        • The Total Sales<\/strong> column should equal 50,000.<\/li>\n
        • The Total Payments<\/strong> column should equal 40,000.<\/li>\n
        • Any amount that appears in the Total Returns<\/strong>, Adjustments<\/strong>, or Balance Before<\/strong> column represents the cause of the difference.<\/li>\n<\/ul>\n<\/li>\n
        • Verify that: Balance = Balance Before + Net Sales \u2212 Total Payments + Adjustments.<\/li>\n<\/ol>\n
          \n

          \ud83d\udec8<\/span><\/p>\n

          Note:<\/strong> Credit notes don’t appear in the returns column, but in the Adjustments<\/strong> column alongside cheques and manual entries.<\/p>\n<\/div>\n

          Step Three: Review the Details of the Differing Amount<\/h3>\n

          If an amount appears in the Adjustments<\/strong> or Balance Before<\/strong> column, open the Clients Account Statement<\/strong> report from the sales reports for the same period, and look for the line whose value is 1,500; each line is linked to the accounting entry and its source.<\/p>\n

          Other Causes of Balance Differences<\/h2>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
          Cause<\/th>\nExplanation<\/th>\n<\/tr>\n
          Previous Balance<\/strong><\/td>\nThe client’s balance before the start of the period, or the opening balance recorded for them.<\/td>\n<\/tr>\n
          Returns and Credit Notes<\/strong><\/td>\nThey reduce the balance, and don’t appear in the payments report.<\/td>\n<\/tr>\n
          Date Differences<\/strong><\/td>\nA payment recorded during the period on an invoice issued in a previous period (or vice versa) is counted within the period’s payments without its invoice being counted within its sales.<\/td>\n<\/tr>\n
          Received Cheques<\/strong><\/td>\nA cheque added from Received Cheques<\/strong><\/a> is recorded on the client’s account directly, and doesn’t appear as a payment on the invoice or in the client payments report, so the invoice stays “unpaid” even though the balance decreased.<\/td>\n<\/tr>\n
          Advance Payments and Credit Balance<\/strong><\/td>\nPayment from the client’s balance doesn’t appear as a new payment in the payments report.<\/td>\n<\/tr>\n
          Incomplete Payments<\/strong><\/td>\nPayments whose status is “Under Review” or “Failed” aren’t counted in any of the reports.<\/td>\n<\/tr>\n
          Draft and Deleted Invoices<\/strong><\/td>\nThey aren’t counted in the reports.<\/td>\n<\/tr>\n
          Manual Entries<\/strong><\/td>\nAny manual entry recorded on the client’s account affects their balance without appearing within the invoices or payments.<\/td>\n<\/tr>\n
          Point of Sale<\/strong><\/td>\nIf the entry is calculated per session, the session’s invoices don’t appear in the entry-based reports until the session closing is confirmed, and they are recorded with the closing date.<\/td>\n<\/tr>\n
          Currencies<\/strong><\/td>\nThe entry-based reports convert amounts at the exchange rate on the entry date, while the client sales and client payments reports convert amounts at today’s exchange rate when all currencies are chosen.<\/td>\n<\/tr>\n
          Branches<\/strong><\/td>\nThe same branch, or all branches, must be chosen in all the reports being compared.<\/td>\n<\/tr>\n
          Recording on Another Client<\/strong><\/td>\nRecording an invoice or payment on an incorrect client.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

          Recommendations to Avoid Confusion<\/h2>\n
            \n
          • When calculating a client’s balance for a specific period, it is recommended to always start from the beginning-of-period balance<\/strong>.<\/li>\n
          • A direct comparison between the Client Sales<\/strong> report and the Client Balances<\/strong> report isn’t valid; the first shows sales only, while the second shows the full balance.<\/li>\n
          • It is recommended to record collection as a payment on the invoice, or to record cheques from the cheque cycle with the invoice number in the description, to ensure the invoices’ status matches the client’s balance.<\/li>\n<\/ul>\n

            Frequently Asked Questions<\/h2>\n

            Which is the correct balance: the manual calculation or the report?<\/h3>\n

            The balance shown in the report represents the client’s actual balance, because it includes all movements, while the manual calculation is limited to the period’s movements only.<\/p>\n

            Why do all the invoices appear unpaid while the client’s balance is low?<\/h3>\n

            This is usually due to recording the collection through received cheques or manual entries on the client’s account, instead of recording the payments on the invoices.<\/p>\n

            Why does the account statement balance differ from the period balance?<\/h3>\n

            The account statement shows the cumulative balance up to today’s date, while the account movement limited to a period shows the ending balance of that period.<\/p>\n<\/div>\n","protected":false},"author":17,"featured_media":0,"template":"","categories":[2130,2149,2155,2126,2131,2156,2093,6953],"tags":[22306,22308,22307,4813,22304,22305,22311,22310,22309,9017,22312,22313,22314],"class_list":["post-150697","tutorial","type-tutorial","status-publish","hentry","category-clients-management","category-invoices-and-estimates","category-sales-invoice","category-clients","category-manage-clients","category-sales-client-payments","category-reports","category-clients-reports","tag-account-movement","tag-balance-difference","tag-beginning-of-period-balance","tag-client-account-statement","tag-client-balance-reconciliation","tag-client-balances-report","tag-client-payments-report","tag-client-sales-report","tag-debt-aging","tag-received-cheques","tag-which-is-the-correct-balance","tag-why-do-all-invoices-appear-unpaid-while-the-clients-balance-is-low","tag-why-does-the-account-statement-balance-differ-from-the-period-balance"],"yoast_head":"\nWhy Does the Client's Balance in Reports Differ from the Net Result of Invoices Minus Payments? 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