This is usually because a balance was left unpaid from the previous month.
For example, if rent is $200 a month and July sales were $100, there will be a balance of $100 on August 1 as July’s sales did not cover August’s rent. If the credit card on file declines, and an invoice payment is not made, this $100 balance will carry over into the next month. If sales in August are $75 and rent of $200 is taken out at the end of the month for September, the balance due on September 1 will be $225.
| August 1 Balance: | ($100) |
| August Sales: | $75 |
| Sept 1 Rent: | ($200) |
| Sept Invoice | ($225) |
*Please note any number in parentheses is a negative number. So in the above example, -100 plus -200 = -300. -300 plus 75 = -225
