Accounting: Penalty Reversal on Automatic Penalty

Dec 7,2016 / By Nimesh / No Comment

One of the very crucial pieces of the powerful money manager module of CommonFloor Groups is the ability to calculate penalty based on over 150 possible penalty rule types. This is has been a very widely used feature in our communities. It automatically calculates penalty based on the chosen rule for a particular Invoice line item (Yes, you read it right. Within a single invoice there is a possibility to choose which line items the penalty would be applicable on.)

With great complexity comes greater responsibility. In past we had encountered certain cases when the update/approval of the amount received was delayed on the system. The penalty keeps getting calculated on daily basis on all eligible line items and invoices till the time a payment is made. Due to the delay in updating the system additional penalties were displayed. In this case the system operator had to add the payment and then add a discount against the additional penalty (or delete the penalty invoice) to balance the entry. This was an inconvenience and we decided to take your feedback very seriously about it.

We have now released a very simple on approval/update/add payment flow which ensures that when the payment is updated you have an ability to choose what penalty to apply:

1) No penalty

2) Auto calculated penalty

3) Penalty manually calculated (or as per payment received)

This would create an invoice for penalty as per actual penalty received and save you a lot of time . The flow for this is as below:

a) Choose the Invoice(House & Invoice/Outstanding) for which the Payment needs to be added

or

a) Click on Approve payment(In case the resident has made a payment update/claim)

b) Check the details of the Payment pending

c) Edit the Penalty amount as per actual collected in case system penalty is different that what you have collected. Update/Approve the payment.

Voila!! Its done. The payment received is now updated. Penalty based on your choice has been processed(applied as per your selection or zero)

Some of you might be worried o how do you handle bulk payments and penalty ??

We have you covered, you can also do a bulk upload of payments with penalty actually collected and system will update accordingly.

Step 1:

Facility Booking

Step 2:

Step 3:

Handling of Cash/Payments in your Society post ban on Rs.500/1000 notes

Nov 10,2016 / By Nimesh / No Comment

In a landmark announcement Govt of India has rendered Rs.500/1000 invalid legal tender. This has a widespread impact on how we transact in the society on day-to-day basis.

Lets look at some of the important aspects:

1) Cash in hand (Collections made till Nov 9): Deposit the notes in your bank account without any issue

2) Reassess if your society will fall into Service Tax bracket (Rs. 5000/month or Rs.60000/annum per flat) and do the needful registrations and declarations to avoid any complications

3) Move to electronic media for all payments collection (Either netbanking or preferably to a Payment Gateway to handle all modes(credit card, debit card, netbanking & international payments) )

4) Remember if you are depositing more than Rs.10 L in this financial year as cash in your account, you have a high probability of IT scrutiny and hardships

5) Ensure you have filed IT Returns for your Society

Keeping the above in mind we have to look into two aspects of money management and how you can do the peacefully:

Money Collections:

1) Preferable mode of payments should be electronic. Handling cheques and cheque returns is a big cost. You can also move to a payment gateway to handle all electronic payments including international payments( netbanking, credit cards, debit cards & international cards: Know more here )

2) In case you still are collecting cash, avoid collecting banned notes. Also ensure that you deposit all your collections and withdraw petty cash separately instead of using the collections directly.

Payments:

1) Use cheques or electronic payments for all payments as far as possible.

2) For payments to workers, ask them to create bank accounts and deposit the same in it.

3) Use small petty cash for any other services provided to you

4) Any recurring payments should be moved to electronic medium

Please find attached the benefits of using CommonFloor Groups online payments and comparison with other modes of payment. GET FREE ONLINE PAYMENT GATEWAY

We hope you have a smooth transition to electronic money management for your society. Please reach out to us to help you make the transition: Call 080 4278 2600 or SMS to +91 9901002797 or write to cf-groups-help@commonfloor.com

Disclaimer: This post is for general information perspective. Please talk to your Chartered Accountant for specific queries about your society.

image courtesy : hindustan times

Smart Residential Living uncategorized

Pets can No More be Banned in Apartment Communities!

Feb 28,2015 / By Nimesh / No Comment

In many apartments, petting dogs or feeding them is highly discouraged by other dwellers. In some cases, Committee members have laid down rules prohibiting pets from loitering in common areas (park, elevator) and some have even gone as far as to ban residents from keeping any pet. Apartment authorities have many-a-time also requested residents to refrain from feeding or taking care of stray dogs. After much concern from animal-loving residents & animal rights groups, the Animal Welfare Board of India has finally passed a ruling against the ill treatment that pets & street dogs often receive in apartment communities.

Here are some key pointers from this circular:

1) Committee members CANNOT ban Pets: No one from your society, not even committee members can prohibit you from keeping pets in your house. Neither can they set any restriction on the size or variety of pet breed you choose. There is no law against barking of dogs, and therefore, that cannot be cited as a valid reason for introducing a ban.

2) Pets CAN use Common Areas (Lifts, Parks, Gardens): There is no law that restricts pets from using common areas in multi-block apartment communities and no such ban can be imposed. Committee Members can however insist that residents walk their pets at a particular time (fixed with everyone’s consent).

3) Use of Leash & Cleaning droppings can be Requested: Committee members can request owners to walk their pets on a leash in common areas and to clean up after their pets in case they defecate in community premises. The Management Committee may set up certain pet defecation areas within the complex.

4) Intimidation or Threats Cannot be used Against Pet-Owners: A committee member using intimidation to make a resident “abandon” their pet is actually abetting the violation of law.

5) Animal Cruelty is a Punishable Offense: Cruelty to animals is an offense under Section 11 of the Prevention of Cruelty to Animals Act & Sections 428/429 of the Indian Penal Code. One cannot prohibit residents from feeding stray dogs, beat/drive them out of the premises or kill them. This kind of cruelty can lead to a fine or even imprisonment.

You should know: As long as you don’t violate any municipal law, you have all the right, legally and fundamentally, to keep any pet you wish to and no one can lay a ban on it.

Have you observed any resident mistreat or deliberately abuse a pet in your community? Tell us in the comments how you think your community can take a step against such cruelty.

How to Celebrate Mahashivratri in Your Apartment Community

Feb 16,2015 / By Nimesh / No Comment

“Mahashivratri,” which literally means “the great night of Shiva”, is a Hindu festival that is celebrated the night before Amavasya (new moon) and this year we observe it on the 17^th of February. Devotees gather together to worship Shiva, one of the three Hindu divine trinities, and pray for the happiness and prosperity of their families & loved ones. (Also learn How to Plan an Event in Your Community using CommonFloor Groups.)

This holy night is believed to be the same night Lord Shiva consumed the deadly poison that emerged from the depth of the ocean and saved the world. Many devotees fast through the day and visit a Shiva temple to offer their prayers.

Here, we list a few ways you can celebrate Mahashivratri in your apartment complex:

Organize a Mantra Chanting Meet: Plan a get-together for the spiritual residents to chant the holy Shiva mantras accompanied with the occasional singing of popular devotional hymns. It’s a spiritual experience that will add more meaning to the celebration.

Conduct an Om Namah Shivaya Program: Meditation along with a group of people is simply a divine experience perfectly suited for this day.

Set up a Bookstall for some Spiritual Read: This will help educate and enlighten the ones hungry for interesting spiritual knowledge. You can also add CDs of ‘aarti’ & ‘bhajans’ to your collection. Follow this with a small ‘aarti’ program in your society’s community hall.

Lastly, add some Food to the Schedule: Offer the holy ‘prasad’ as lunch to resident devotees.

Along with all of this, you can also consider organizing a drawing competition & fancy dress contest centring the theme of ‘Shivratri’. This will help educate the younger population about the importance & history of the festival.

Author Archives: Nimesh

Accounting: Penalty Reversal on Automatic Penalty

Handling of Cash/Payments in your Society post ban on Rs.500/1000 notes

Pets can No More be Banned in Apartment Communities!

How to Celebrate Mahashivratri in Your Apartment Community

Protected: Payment Gateway Charges Slashed!