Active and passive residuals in condominium accounts

Active and passive residuals are the accounting positions that remain open at the end of a fiscal year and carry into the next one. Active residuals are the receivables the condominium still has to collect, typically instalments owed by defaulting owners; passive residuals are the debts the condominium still has to pay, such as unpaid supplier invoices. Recording them precisely in the statement of assets and liabilities is what makes the accounts compliant with Article 1130-bis of the Italian Civil Code and readable for the owners' meeting.

Why residuals exist

The condominium statement is not kept on a pure cash basis. Case law on Article 1130-bis describes a mixed system: the accounting register records actual receipts and payments, but the statement of assets and liabilities and the explanatory note must also account for open accrual items. If an expense accrued during the year but the invoice was not paid, that debt exists and must be shown. Likewise, if an instalment was resolved but the owner did not pay it, that receivable exists and must be shown. Residuals are the photograph of these open relationships.

Active residuals: the condominium's receivables

Active residuals represent what the condominium is owed by third parties. The most common item is the receivable from defaulting owners, that is instalments issued under the budget and not yet collected at the closing date. They also include receivables from suppliers, for example advances paid for works not yet carried out, or receivables from insurers for claims to be settled. Every active residual must be traceable to a named position: a total is not enough, you need to know which owner owes how much, because that receivable can be enforced through the injunction order provided by Article 63 of the implementing provisions.

Passive residuals: the condominium's debts

Passive residuals represent what the condominium owes to third parties. They are mainly debts to suppliers for invoices received but not yet paid, but they also include debts to owners, for example when an owner has paid more than due and has built up a credit to be refunded. Funds set aside and not yet used also appear among the liabilities in the balance sheet. Recognising passive residuals prevents the condominium from looking more liquid than it really is: a full account burdened by invoices to pay is not free availability.

How they appear in the balance sheet

The statement of assets and liabilities compares the condominium's assets and liabilities at a given date. An orderly structure clearly distinguishes the quantities involved.

• Liquid assets: cash and bank account balance at closing.
• Active residuals: receivables from defaulting owners and from other parties.
• Passive residuals: debts to suppliers and to owners in credit.
• Funds: reserve fund, arrears fund, special funds for works.
• Net position: difference between assets and liabilities, consistent with management.

The ban on netting

The most insidious mistake is netting active and passive residuals into a single balance. If the condominium has 3,000 euro of receivables from defaulters and 2,500 euro of debts to suppliers, showing only the 500 euro difference hides both positions and makes the document unintelligible. The two figures must be shown separately and by individual position: only then does the meeting understand how heavy the arrears are and how much the condominium still has to pay. Hidden netting is one of the most frequent grounds for challenging a statement.

The transition from one year to the next

Residuals are not reset when the statement is approved: they form the opening balance of the following year. The receivable from the defaulter stays recorded until it is collected or deemed uncollectible; the debt to the supplier stays recorded until it is paid. This continuity is what lets you track a default or a work paid in instalments over time without losing sight of it. Carrying residuals forward badly generates differences that drag on for years and complicate every adjustment.

Keeping receivables, debts and carry-forwards aligned is easier with software that updates the balance sheet at every transaction and links each residual to the individual owner or supplier. AmministraPro handles residuals, funds and carry-forwards automatically and verifiably; the accounting features are shown on the /funzioni page and the plans on the /prezzi page.