Rents → Reversing a settled rent due charge
So you have a rent charge (or “other” charge) on a tenant’s rent book (rent collection panel) and you have disbursed the money related to this to the property owner (or to your organisation) and possibly also disbursed management fees. All of these are in a settlement.
You cannot delete the settlement because you have already paid out the money to the property owner, this would not be the correct course of action.
You cannot manually add reversals into COHO for the rent because by intention and design the software controls this to make sure all the numbers add up.
Instead, what you need to do is reverse the specific rent charge on that tenancy’s rent book (rent collection panel).
Example data
We will be looking at a tenancy for Derek’s Office. His rent book was set up incorrectly as rent was charged at £2,400 but then increased incorrectly to £2,640 (increased early) from the 1st of March instead of on the 1st of May.
These charges need to be corrected to be at £2,400. The data before we start is below with the two items we will reverse marked in red.
STEP 1 → Browse to the tenancy you want
Using the search, occupancy panel, or manually drilling into the appropriate property (and room if applicable) find the tenancy and navigate to the rent collection panel.
Find the rent due charge you want to reverse and click the VIEW button on the right-hand side of it.
STEP 2 → Open the rent due item and click REVERSE
Note: The reverse button will only be visible for items which have 1 or more settlements against them. If a rent due item isn’t part of a settlement then you should be able to delete, edit, or remove payments associated against it.
Open the payment as shown below and click reverse.
STEP 3 → Re-create the rent due charge correctly
Reversing a charge creates ‘inverse’ settlement items that you can pull into the next settlement you create. It will also “remove” the rent due charge from impacting the balances on the rent book and free up those payment (or parts of them) to be assigned to other charges.
You can click on the Load Items button (under the financial items heading) to see the new reverasls and visually confirm you are happy with the data. The rent book should now show as follows (with the payments freed up to assign elsewhere).
The payments that were released from the reversal are re-assigned as we see fit, and this then brings the rent book fully up to date with all charges correct and all payments accurately reflected. We are now ready to go and create a new settlement.
NOTICE: Previously the charge 1 May to 31 May had no money associated against it, but now it does. This makes complete sense as the two months before were incorrectly billed at £2,640 thereby taking up £480 of the rent that should have gone to the month of May.
STEP 5 → Create a new settlement and review
In this example the correct amount of money and management fees were disbursed, but the items they were associated against were incorrect. Due to this the balance on the settlement come downs to £0 and there is no bank payment to make.
ADVISORY: Where possible, clear out these reversals to a £0 balance so that you have the option to leave the settlement in the APPROVED state. The property owner is only given settlements that are PUBLISHED.
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