How to Identify and Correct Out-of-Balance Conditions

Maxio Core supports accurate financial reporting by identifying and alerting you to imbalances between invoices, revenues, and transaction amounts across customers, contracts, and transactions. The system provides tools and alerts to help you correct discrepancies, but accuracy ultimately depends on reviewing and resolving the flagged records.

An out-of-balance contract indicates a potential invoicing or revenue reporting problem. Maxio Core uses the following logic to define balanced vs. out-of-balance:

Balanced: The total transaction amount, invoice line items, and recognized revenues are equal within the same currency.

Σ Transaction Amount(s) = Σ Invoice Line Items = Σ Transaction Revenues (per currency)

Out-of-Balance: An imbalance exists when any one of these totals differs from the others for a given currency. In other words, an imbalance exists whenever the equality above does not hold. The three totals do not all have to differ from each other.

Where "Σ" is the total sum of each item.

Example:

$12,000 Transaction Amount ≠ $10,000 Invoice Line Items = $12,000 Revenues

In this case, the transaction and revenue totals match, but the invoice total does not, creating an out-of-balance condition.

The term, Invoice Line Items, refers to the total of the line items, not the total of the Invoices. Invoices often include taxes, which are not part of the out-of-balance check because taxes are not recognized revenue. Also, Invoice Line Items that are not linked to Transactions may cause out-of-balance conditions. These line items may appear on invoices but are excluded from revenue-recognition logic unless they are properly linked.

Alerts for customers, contracts, transactions, and invoice line items are designed to draw your attention to any problem records.

Types of conditions

The following table lists the types of out-of-balance conditions you may encounter.

Common causes

The following actions may lead to out-of-balance conditions in Maxio Core:

Maxio Core actions

The following actions can cause or contribute to out-of-balance conditions:

• You create invoices manually instead of through a sales order, thereby skipping automatic linking.
• You edit a Transaction’s amount without regenerating its related revenues or invoices.
• You delete or modify a Transaction that is linked to synced Invoice Line Items.
• You manually edit a revenue schedule without keeping totals aligned.
• You edit or delete unsynced Invoice Line Items that are not properly linked.
• You import incomplete or mismatched data.
• You delete invoices that affect posted balances.

General ledger causes

Certain actions in your general ledger system can lead to imbalances after syncing with Maxio Core, including:

• You delete or void invoices that have already synced.
• You reassign or merge Customers, which moves linked invoices.
• You edit or re-create Invoice Line Items in the GL without updating Maxio Core. The effect depends on your integration settings and how frequently data syncs.

Projects

Projects create invoices and revenue schedules as milestones are completed. Temporary imbalances can appear while milestones are still in progress or partially synced. Once all milestones and related Transactions are complete and properly linked, balances usually realign automatically, though you should confirm before closing the Project.

How to correct imbalances

To correct an imbalance, review the related Transactions and Invoice Line Items:

• If the records are editable (not in a closed period or fully synced), you can use Balance, Edit Revenues, or Edit Invoice Line Items to fix the totals. The Balance action appears on a Transaction only while it is actually out of balance, and is shown disabled on a locked Transaction with the note "Can't change amount on a locked Transaction".
• If the records are locked or fall in a closed period, make adjustments through revenue entries or invoice line items that are outside those periods.

Balancing requires that the Transaction amount, total Invoice Line Items, and recognized revenues match for each currency. When you regenerate revenues or invoices, Maxio Core deletes and recreates those records to realign the totals.

Transaction not in a closed period, with no synced Invoice Line Items

If the Transaction isn’t in a closed accounting period and its Invoice Line Items aren’t synced, you can usually edit most fields directly. Typical corrections include adjusting amounts, regenerating revenues or invoices, or linking invoice line items.

• Use Edit Transaction to change the amount or regenerate invoices/revenues.
• Or use Balance to set the Transaction amount and revenues to the Invoice Line Item total.

Transaction with synced Invoice Line Items

When a Transaction has synced Invoice Line Items, editing options are more limited. You can still rebalance totals, but changes must respect the sync state.

• Use Balance to set the Transaction total to the synced Invoice Line Item total.
• Adjust revenues with Edit Revenues or Generate Revenues, if allowed.
• For any unsynced line items, use Edit Invoice Line Items to correct totals.

Transaction in a closed period

If the Transaction falls within a closed accounting period, you cannot directly change the Transaction or regenerate invoices for that period. You can still correct records outside the locked dates.

• Use Edit Revenues to adjust the timing or totals for revenue entries outside the closed period.
• Use Edit Invoice Line Items to adjust unsynced or open-period line items.

Imbalance originating in Invoice Line Items

If the imbalance originates from Invoice Line Items, such as missing links or incorrect amounts, you can resolve it by editing or associating those items.

• Use Edit Invoice Line Items in the Customer, Contract, Transaction, or Invoice view (based on your permissions).
• If needed, Create Transactions from Invoice Line Items to link orphaned items to new Transactions.

Every tool named above is described in Correction options.

Correction options

Depending on sync status and accounting period, the following tools may be available: