Rents account reconciliation overview
Reconciliation - also referred to as balancing the account - is an accounting process used to compare two sets of records to ensure the figures are in agreement and a true reflection of the state of the account. Reconciliation is the key process used to determine whether the charges on a rent account are matched by the incoming payments, ensuring that, ideally, the two sets of values are balanced at the end of the recording period or that any potential arrears situations are identified quickly. Typically, it is recommended that account reconciliation takes place at the end of each month, or more frequently if stipulated by the housing organisation. Reconciling the rent accounts enables the housing organisation to closely track both rent charges and revenue, ensuring that any errors are detected and acted upon promptly.
Within Civica Cx Housing, the end user is able to control the transactions that are displayed for reconciliation: typically those with an Outstanding Balance, or for corrective purposes All Transactions. Transactions can be reconciled - matched - against corresponding entries in full or in part, with the running total of matched components shown in the 'allocated' column. Only once the combined values of the allocated transactions equate to zero can the result be saved. By way of example, an end user would select a collected payment as the source transaction to be reconciled and then match it against any number of charges held on the account, as well as combining it with any expected housing benefit payments. The system automatically handles the sign attribute of each transaction, where payments are shown as negative and charges as positive. Once the overall allocated balance is zero the match can be confirmed. This process can be repeated until all desired transactions are matched. Once a subsequent reconciliation is conducted, those transactions with no remaining balance will be excluded from the default view. Where a transaction is matched in error, the default view can be changed to show 'All Transactions' and the originally allocated value of the transaction reduced to zero, or an alternative lower amount.
The system also provides the facility to transfer a payment value or portion of the balance over to an alternative account, as well as the option to post account adjustment transactions (for corrective purposes or write-off situations), with full transaction audit integrity.
Separate help articles have been created for each key aspect of rents account reconciliation, including: