How to handle Suspense Receipts?

More often than not society receives few payments from members (or non-members) an amount which cannot be really traced to the specific flat or non-member. Typical example is a member doing a NEFT into the society bank account and does not record the same in the portal or inform the treasurere. Now, society will have no idea who has made this transfer – but has to acccount for it as the amount is in bank. Typically, these are called ‘Suspense Entries’.

A recommended way to handle such receipts is to follow the steps below:

1. Create a non-member income category called ‘Suspense Account’, if not already there.

2. Record the receipt received as a regular non-member income by going to Income->Non Member Income->Add Non Member Income.

Now, when you have realized who has actually paid this – there are two options you have:

Option-1: Delete the non-member income entry. Go to Income->Enter and Verify Payments and issue the receipt to the member as usual. This is usually preferred when the suspense entry identification happens with in the same financial year and auditing is not yet complete and books are not frozen.

Option-2: This option is to be used usually when you have identified last financial year’s suspense entry (after the books for last year are frozen). Here, we suggest you to pass and adjustment from Suspense account to the flat. To pass an adjustment against a flat, please go to Member Income -> Make Payment against the flat and then select ‘Adjustment’ as the payment type – you will get an option to select the Suspense Account’s ledger – select the same and then confirm the payment. This will ensure the amount is reduced from Suspense Account’s ledger and is accounted towards the flat’s ledger.

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