How to close owners' individual balances at year-end

The individual balance as a mirror of the account

The general account shows the condominium's overall picture, but each owner looks at their own position: how much was due, how much was paid, what remains. The individual balance is the bridge between the two levels and must be perfectly consistent with the statement of assets: the sum of individual debit balances equals the receivables from owners.

To build an owner's position, start from the charges of the year, that is the budgeted shares and any adjustments, and subtract the payments received. The result is the individual balance, which may be a debit if they paid less than due, a credit if they overpaid, or zero if they are square.

Reconstructing charges and receipts

The first step is to gather, for each owner, all the charges of the year: the budgeted instalments, calculated on the thousandths, and the adjustments arising from the previous year's account or from approved extraordinary works. Every charge must rest on a resolution or a plan.

The second step is to total the receipts: transfers, payments, any offsets. It is essential to allocate each receipt to the right position and the right year, avoiding attributing to one year a payment relating to another. A misallocated receipt distorts both the individual balance and the cash.

• Charges: budgeted instalments on thousandths plus approved adjustments
• Receipts: actual payments allocated to the right position and year
• Individual balance: charges minus receipts

Isolating and handling arrears

Debit positions still open at year-end are the arrears. They must be identified precisely, because they feed the receivables from owners and because any recovery action rests on them. Article 63 of the implementing provisions allows the manager to obtain a payment order on the basis of the approved allocation schedule.

Closing positions clearly means distinguishing the owner who is square from the one in arrears and quantifying exactly the amount owed by each. Only a certain individual balance, anchored to an approved allocation, allows recovery to proceed and disputes to be answered with incontrovertible figures.

Adjustments and carry-forward to the new year

With the approval of the year-end account, adjustments arise: the difference between what each owner paid in the budget and their actual share of accrued expenses. A debit adjustment increases the amount owed, a credit adjustment reduces it or creates a credit in the owner's favour.

The residual balance of each position, after adjustments, is carried as the opening of the new year: those in debit start with a negative balance, those in credit with a positive one. This carry-forward must tie to the closing statement of assets, so no individual credit or debit is lost in the transition between years.

Checking consistency with the account

The final check compares the sum of individual balances with the account items: debit balances must add up to receivables from owners, credit balances to payables to owners. If the two do not coincide, there is a misallocated receipt, a missing charge or an unapplied adjustment.

Software that keeps instalments, receipts, adjustments and the statement of assets linked generates the individual statement of account automatically and checks the tie-out with the account. AmministraPro closes owners' balances, highlights arrears and carries balances into the new year consistently with the account: the features are described in /funzioni and the plans in /prezzi.

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