Preventing negative balances in unit rental accounts

When managing invoices, you may encounter the error:
You may also encounter the following issue when attempting a move-out

This occurs when an action—such as deleting an invoice or applying excessive discounts—causes the account balance to drop below zero, which is not allowed.

Common causes

Deleting an invoice with applied prepayments
  • A prepayment is collected on Invoice A.
  • Part of the prepayment is applied to Invoice B.
  • Deleting Invoice A would leave the prepayment account with a negative balance, so the system prevents it.
The following is an example scenario:
  • You have collected $100 in prepayment in invoice A
  • You apply $50 of prepayment to an account in invoice B
If you were to delete invoice A, the prepayment account would end up with a balance of $-50, which is not allowed.  This is why the system prevents you from deleting invoices or invoice items that would make this happen.
Overlapping discounts exceeding rent
  • Multiple discounts are applied simultaneously (e.g., 30% + 40%).
  • The total discount exceeds the rent, creating a negative revenue balance.
  • This blocks further actions like move-outs.
The following is an example scenario:
  • A unit has a monthly rent of $500.
  • A 30% discount ($150) and a 40% discount ($200) are applied at the same time.
  • The total discount ($350) exceeds the rent amount, reducing the revenue account below zero.
Since the system does not allow a negative revenue balance, this prevents certain actions, such as processing a move-out.

How to fix it

Adjust prepayments or applied transactions
  • Start with the latest invoices and remove "prepayment applied" transactions before deleting older invoices.
  • Ensure prepayments are properly allocated to avoid negative balances.
Correct discount or charge allocations
  • Review and adjust discounts to ensure they do not exceed the rent amount.
  • If necessary, create an adjustment line item in an invoice to balance the revenue account.
Transfer funds between accounts
You may need to do this if income has been accidentally added to the incorrect account. Find the guide here: Transfer funds between accounts.
Verify the revenue account before processing move-outs
Check the revenue refund amount and current balance before processing a move-out.

Following these steps will prevent errors and allow smooth processing of unit rental accounts.
Preventing negative balances in unit rental accounts