Working with negative settlements

There may be times when you don't run but still receive a weekly settlement with deductions that are taken out each week. In these situations, you will have a negative settlement that has no revenue but has expenses. You will still need to enter these settlements to account for the expenses.

Entering a Negative Settlement:

  • On weeks you didn't run you do not need to add anything under the Income section.
  • You'll notice that the net settlement is a (-) negative number.
  • The negative expense is already being accounted for on the negative settlement so you only need to deduct it under expenses if your carrier deducts it from your next settlement that has revenue.
  • If and when your carrier lists the negative amount on the next positive settlement, you will create a subcategory in the Expense section of the settlement under Retained Earnings.
  • Enter the name of the transaction so you can easily refer back to it on future settlements, most carriers title this deduction as 'Previous Balance' or 'Balance Forward'.
  • With the subcategory created under Retained Earnings this amount will be deducted from your settlement so it balances out but will not double the negative amount.
  • After you add the amount of the Previous Balance then you'll see your net settlement decrease and match the settlement.
  • Also, if you go and check on your Business Report you'll notice that the Previous Balance (or whatever you titled the subcategory) amount was not deducted as an expense.