When viewing loans in Balancer, understanding the discrepancy figure is key. This is ultimately the amount you will want to resolve to get your loans to balance at the end of the month.
How is the discrepancy column calculated?
To understand the discrepancy amount, we need to first understand each aspect of the Balancer transaction listing page:
Amount: The total of transactions that have gone through each side of the loan during a given month
Balance: The closing balance of the loans at the end of the month. Adjusted for any FX gains/losses.
The Discrepancy is simply the difference between the closing 'Balance' of the loans at the end of the month. The amount column is just a total of the transactions and is NOT relevant for calculating discrepancies.
Let's go through an example calculation:
Balance of loan 1 (GBP): £145,100.00
Balance of loan 2 (USD converted to GBP): (£149,040.55)
Discrepancy (GBP): £3,940.55
Cash-in-transit across periods
Where the 'discrepancy' or 'balance' fields have a dashed underline there is a "cash-in-transit" situation between months.
Refer to the article: Cash-in-transit & matching amounts across periods
Special note for multi-currency loans
If you're viewing a loan that is in two different currencies, the amounts on both sides will default to the currency of the 'lender'.
You can swap this to view the loans in the currency of the borrower using the toggle:
You would primarily do this where you want to match an amount or a balance on the borrower's side, to something in Xero.
More information on FX and how it applies to transactions and balances
FX will only be relevant where the loans are in different currencies in Xero.
In order for Mayday Balancer to match transactions across entities, we automatically convert transactions and balances (on the borrower's side of the loan) at the relevant FX rates.
For more information on Mayday's FX rates and setting your own rates, refer to: FX rates & how-to override Mayday's default FX rates
FX on transactions: FX is applied to transactions on the borrower's side as a way to match transactions on the lender's side.
You can hover over any transaction that has been converted to see the source currency amount (which will match the transaction in Xero) and the FX rate applied.
FX on balances: FX is applied to the closing balance in order to determine the difference between loan balances, and the inevitable FX adjustment that needs to be posted into the borrower's account.
Similar to above, you can hover over any balance to see the source amount (which will match Xero) and the FX rate applied.
For more information on posting FX adjustments, refer to: Posting FX adjustments