Settlements between co-owners
Track who owes whom between co-landlords, covering cash rent collected for others, deposits and shared expenses, and settle the balances.
Overview
When a property has several owners, one landlord often collects money on behalf of another. For example, one owner may collect all the cash rent, or receive a deposit instalment for both. Misc. Due Reconciliation keeps the net balance between each pair of landlords. It combines:
- one-off dues you record,
- monthly dues created by recurring arrangements, and
- the net result of Expense Reconciliation, added automatically and tagged auto.
The ledger holds only the balances between owners. The underlying rent, deposit and expense records stay in their own pages.
Before you start
- The page is available to landlords, master admins and CAs. Only landlords and master admins can record, offset, settle or delete dues.
- A landlord sees only dues that involve them. A master admin sees all of them.
- To work out a cash share automatically, the lease needs a Cash Rent amount and the property needs ownership percentages.
Steps
- Open Operations → Reconciliation → Misc. Due Reconciliation.
- Each landlord has a card showing Owed to them, They owe and a Net figure. Each line below reads, for example, "R. Iyer owes A. Sharma ₹30,000". Click a line to see the items behind it.
- To record a one-off amount, click Record a due. Choose Landlord who owes (pays), Landlord who receives, Amount (₹) and a Category (Deposit, Cash rent, Account rent, Shared expense, Adjustment or Other). You can also add a property, tenant and notes. Click Record due.
- To set up a monthly due, click Recurring rule. Choose Collected by (owes) and Payable to (receives), then pick an Amount basis:
- Derive from a lease's cash share (recommended), then choose the lease.
- Fixed monthly amount. Set Starts (month) and Starts (year), then click Add rule.
- Recurring dues are created automatically each month. Click Generate this month under Recurring arrangements to create them straight away.
- If part of a due was used another way, click Offset on the item. Enter the Offset amount (₹) and What was it used for?, then click Save offset. Net owed goes down by the offset.
- When the money changes hands, click Settle up on the item.
- Click Export Excel to download a Who Owes Whom summary and a details sheet to share.
Example
Bluebird Cafe pays ₹20,000 cash rent at Lakeview Plaza, owned 50/50 by A. Sharma and R. Iyer. A. Sharma collects all of it. You add a recurring rule: collected by A. Sharma, payable to R. Iyer, derived from Bluebird Cafe's cash share. Each month a ₹10,000 due is created. After three months, A. Sharma's card shows "A. Sharma owes R. Iyer ₹30,000".
A. Sharma also paid a ₹4,000 electricity bill for R. Iyer, so you offset ₹4,000 against one month's due. The net owed becomes ₹26,000.
FAQs
What if I settle a due by mistake?
Expand Settled dues and click Reopen. The due goes back to pending.
Why are some properties not netted automatically?
A property marked Partial · external books in Expense Reconciliation is left out of the automatic netting. Square it up with a manual due.
Can an offset be larger than the due?
No. An offset can't be more than the gross due.
Troubleshooting
A rule shows "cash rent not set on lease"
The lease has no agreed cash rent, so the rule creates ₹0 dues. Add the Cash Rent on the lease in the Lease Dashboard.
The page says "No pending reconciliations"
There are no open dues yet. Record a due or add a recurring rule.