ScaleXP reconciles your prepayments balance sheet account against Xero or QuickBooks every time you open the Prepayments Journal page. When the two ever drift apart, Sections 3 to 5 of that page give you everything you need to find the cause and post a correcting entry. This article walks you through the three causes that account for almost every difference we see.
If the suggested journal in Section 1 won’t post at all, see Why Can’t I Post My Prepayments Journal? — that’s a different scenario covered in its own article.
Review Section 4 of the Prepayments Journal
Go to the Journals tab and open the Prepayments Journal page. Use the Months to display picker in the top-right to land on the month you’re reconciling.
Scroll to Section 4: Balance Sheet Movements. ScaleXP shows you four numbers:
- Opening Balance — the prepayments account balance at the start of the period.
- Closing Balance — the ScaleXP closing balance after the suggested journal in Section 1 is posted.
- Accounting system closing balance — labelled “Xero closing balance” or “QuickBooks closing balance”.
- Difference — the gap between the ScaleXP closing balance and the accounting system balance.
When the Difference is zero you’re already reconciled and can post the suggested journal. When it’s non-zero, note the figure and move on to Step 2.
Three common causes
These three causes between them explain almost every reconciliation gap. Work through them in order — the first cause is by far the most common.
Cause 1. The opening balance for the period needs a one-off adjustment
This applies when you’ve just started using ScaleXP, or when ScaleXP and the accounting system diverged in an earlier period and the gap has carried forward.
ScaleXP calculates the prepayments balance from the future expenses on the bills you’ve selected for prepayment. This may differ from the amounts currently sitting in your accounting system.
The simplest path is to move your prepayments work onto a new, ScaleXP-only balance sheet account, so the two balances start fresh and stay aligned from day one. See How to Change Designated Prepayment Accounts and Prepaid Expenses: Best Practices and Quick Start Guide for the full walkthrough.
Cause 2. A manual journal was posted to the prepayments account outside ScaleXP
ScaleXP reads every movement on your prepayments balance sheet account. Any journal posted directly in Xero or QuickBooks — independent of ScaleXP’s suggested journal — shows up in the accounting system balance and is shown back to you in Section 3 so you can match it inside ScaleXP.
To find these journals, look at Section 3: Journals Already Posted on the same page. ScaleXP splits this into:
3a: Journals posted in month — journals dated within the month you’re reviewing.
3b: Journals posted as late adjustments — journals dated to this month but posted in a later period.
Any line in 3a or 3b that wasn’t generated by ScaleXP is a manual journal. To resolve, either mirror the journal inside ScaleXP — using the Add a Manual Bill flow under Section 7 — or move the prepayments work onto a separate, ScaleXP-only balance sheet account so manual entries and the automation stay cleanly apart. See How to Change Designated Prepayment Accounts for the second option.
Cause 3. A bill has been back-dated, or your accounting period is locked
ScaleXP picks up late-arriving and back-dated bills in the period they relate to. When the Xero or QuickBooks period is locked, the suggested journal lands in the current open period instead — the right behaviour for a closed book, and one that ScaleXP surfaces so you can see exactly what’s happened.
To check, expand Section 3b: Journals posted as late adjustments. Any journal here is a back-dated entry. Compare these to the bills listed in Bills Received in [Month] — see How to Review Bills by Issue Month for the page walkthrough.
When everything in 3b ties back to a bill that came in after the month closed, no further action is needed — ScaleXP has handled the correction and your Section 1 suggested journal already nets it out.
Step 4. You’re done — your prepayments are reconciled
That’s it — your prepayments balance ties back to your accounting system and you can post the suggested journal in Section 1 with confidence.
After working through any of the causes above, refresh the page or wait for the next automatic sync — ScaleXP syncs with your accounting system every 24 hours, usually overnight. Return to Section 4 and confirm the Difference is now zero.
When the Difference has reduced but isn’t yet zero, work through the remaining causes in order — it’s common for two of the three to apply in the same period (for example, a manual journal in Xero combined with a back-dated bill).
Carry on with your month-end close:
Related Articles
Why Can’t I Post My Prepayments Journal?
How to Automate Your Prepaid Expense Journal: Review and Post the Prepayments Journal
How to Automate Prepaid Expenses: Setting up Prepaid Expenses in ScaleXP
How to Add a Missing Bill or Cost Supplier