billing

What is Item Wise Adjustment?

Almost every invoice includes more than one charge. Item (Charge)  Wise Adjustment is a mechanism where charges are knocked off in defined order,  whenever a payment is made against the invoice.

Instead of having multiple bills, a single bill with multiple charges has many benefits including:

bill-payment

#1. Customer Convenience: Single bill makes my life easy. I need to refer one bill for all charges and I know what are my current dues easily. Instead of referring separate bills for electricity, CAM, Club, etc. If I can see all my charge-wise distribution make it easy for me to track.

#2. Faster Recovery: With one bill, We have one outstanding amount which comprises all different charges. So this leads to easy tracking of the defaulter. Defaulter can’t keep paying only electricity while bypassing CAM payments.

#3. Increased Transparency: Single bill with a clear distribution of charges brings transparency. Both management and customer have a clear idea of charge calculations, dues, etc.

Item Wise Adjustment Example

For example, if we have below charges for a unit along with calculation order. Calculation order denotes how the charges will be knocked off.

Table 1: Tariff Table

S.NoTariff NameAmountCalculation Order
1Delayed Payment Charge10001
2Common Area Maintenance40002
3Water Charges10003
4Electricity Charge40004

 

After successful payment of ₹8000, System will adjust all charges except the Electricity Charges as per the calculation order in Table 1.

Table 2: Charges Adjusted and Balance

S.NoTariff NameCharge AmountAdjusted against PaymentBalance
1Delayed Payment Charge100010000
2Common Area Maintenance400040000
3Water Charges100010000
4Electricity Charge400020002000

 

So, after successful payment by customer:

  • Electricity Charge will be adjusted partially as this was last in the calculation order.
  • So Online Prepaid Meter, if applicable will be recharged with ₹ 2000 only.
Background

Factech provides Billing Solution through

  1. iBill: The complete recurring billing Product, primarily targeting commercial real estate. For details refer https://factech.co.in/billing-software-solution-real-estate.html
  2. iSocietyManager is a complete suite for Residential real estate and facility to automate their operation including billing, collection, online payment, and Accounting. For details  refer https://isocietymanager.com.
Smart Meters Integrated and Advanced Billing

With the development of large residential societies and installation of prepaid meter solutions, iSocietyManager  comprises billing service which caters below:

  • Single bill with multiple charges like – Maintenance, Grid, DG, Social Club, Delayed Payment etc.
  • Configurable charges and their respective rates.
  • Define and configure the order of different charge adjustments in case of payment.
  • After adjusting all charges balance to be recharged in Online Prepaid
  • Tax applicability at a charge level.
  • Online Payment Facility for the resident.
  • Notify defaulters automatically or with a single click.
  • Generate and send bills with a single click.
  • Integration with ERP like Tally/ SAP etc.

iSocietyManager supports customized bill formats with multiple charges along with UI for :

  • Configuring Tariff ( Charge) Table.
  • Multiple options while defining charges including slabs, flat category level, minimum charge, area wise, fixed etc.
  • Option to define calculation order of the charge so that in case of payment the different charges are adjusted as per the order defined.
  • Delayed payment charge – Day Wise / Cycle wise.
  • Select Tax applicability at charge level.

The Factech team has been helping real estate clients in Simplifying the Facility Operations.

Contact us for a free demo of how our expertise can help you achieve your business goals.

How to get started Billing

What is Best Practice for Late Payment Charges in Billing?

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