{"id":975,"date":"2020-04-01T11:17:24","date_gmt":"2020-04-01T11:17:24","guid":{"rendered":"https:\/\/blog.isocietymanager.com\/?p=975"},"modified":"2021-05-27T14:01:14","modified_gmt":"2021-05-27T08:31:14","slug":"what-is-item-wise-adjustment","status":"publish","type":"post","link":"https:\/\/factech.ai\/blog\/what-is-item-wise-adjustment\/","title":{"rendered":"What is Item Wise Adjustment?"},"content":{"rendered":"

Almost every invoice includes more than one charge. Item (Charge)\u00a0 Wise Adjustment is a mechanism where charges are knocked off in defined order,\u00a0 whenever a payment is made against the invoice.<\/p>\n

Instead of having multiple bills, a single bill with multiple charges has many benefits including:<\/p>\n

\"bill-payment\"<\/p>\n

#1. Customer Convenience:\u00a0<\/strong>Single bill makes my life easy. I need to refer one bill for all charges and I know what are my current dues easily. Instead of referring separate bills for electricity, CAM, Club, etc. If I can see all my charge-wise distribution make it easy for me to track.<\/p>\n

#2. Faster Recovery:\u00a0<\/strong>With one bill, We have one outstanding amount which comprises all different charges. So this leads to easy tracking of the defaulter. Defaulter can’t keep paying only electricity while bypassing CAM payments.<\/p>\n

#3. Increased Transparency:<\/strong> Single bill with a clear distribution of charges brings transparency. Both management and customer have a clear idea of charge calculations, dues, etc.<\/p>\n

Item Wise Adjustment Example<\/h5>\n

For example, if we have below charges for a unit along with calculation order. Calculation order denotes how the charges will be knocked off.<\/p>\n

Table 1: Tariff Table<\/p>\n

\n\n\n\n\n\n\n
S.No<\/strong><\/td>\nTariff Name<\/strong><\/td>\nAmount<\/strong><\/td>\nCalculation Order<\/strong><\/td>\n<\/tr>\n
1<\/td>\nDelayed Payment Charge<\/td>\n1000<\/td>\n1<\/td>\n<\/tr>\n
2<\/td>\nCommon Area Maintenance<\/td>\n4000<\/td>\n2<\/td>\n<\/tr>\n
3<\/td>\nWater Charges<\/td>\n1000<\/td>\n3<\/td>\n<\/tr>\n
4<\/td>\nElectricity Charge<\/td>\n4000<\/td>\n4<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n

 <\/p>\n

After successful payment of \u20b98000, System will adjust all charges except the Electricity Charges as per the calculation order in Table 1.<\/p>\n

Table 2: Charges Adjusted and Balance<\/p>\n

\n\n\n\n\n\n\n
S.No<\/strong><\/td>\nTariff Name<\/strong><\/td>\nCharge Amount<\/strong><\/td>\nAdjusted against Payment<\/strong><\/td>\nBalance<\/strong><\/td>\n<\/tr>\n
1<\/td>\nDelayed Payment Charge<\/td>\n1000<\/td>\n1000<\/td>\n0<\/td>\n<\/tr>\n
2<\/td>\nCommon Area Maintenance<\/td>\n4000<\/td>\n4000<\/td>\n0<\/td>\n<\/tr>\n
3<\/td>\nWater Charges<\/td>\n1000<\/td>\n1000<\/td>\n0<\/td>\n<\/tr>\n
4<\/td>\nElectricity Charge<\/td>\n4000<\/td>\n2000<\/td>\n2000<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n

 <\/p>\n

So, after successful payment by customer:<\/p>\n