How to Manage Old Rent Collections in FalconPro Real Estate Software

How to Manage Old Rent Collections in FalconPro Real Estate Software

Introduction

When transitioning to FalconPro Real Estate Software, some businesses may have outstanding rent payments from tenants before system implementation. Since these payments are related to contracts not recorded in FalconPro, a special accounting method is required to ensure proper tracking.

This guide explains how to:
✅ Create a separate account for old rent collections.
✅ Configure fee items for old rent.
✅ Process rent receipts for contracts not in the system.
✅ Track payments accurately without linked lease contracts.

1. Understanding Old Rent Collections in FalconPro

If a tenant pays rent for a past period (e.g., 2020 or 2021) but the lease contract is not available in FalconPro, users must:

  • Create a separate account for old rent collections in the general ledger.
  • Configure a fee item to categorize these payments correctly.
  • Process receipts manually without linking them to a contract.

💡 Example Scenario:
Your company started using FalconPro in January 2022, but a tenant is now paying rent for 2020 or 2021. Since the contract does not exist in FalconPro, this payment must be processed as Old Rent Collections in accounting.

2. Creating an Account for Old Rent Collections

To manage old rent payments correctly, users must first create a separate ledger account.

Steps to Add an Old Rent Collection Account:

  1. Go to Administration → Master Files → Accounting.
  2. Select “Chart of Accounts”.
  3. Click “New” to Create a New Account.
  4. Enter Account Name:
    • Example: “Old Rent Collections”
  5. Choose the Account Type Based on Company Policy:
    • ✅ Under Revenue (if considered income).
    • ✅ Under Equity (if considered adjustments).
  6. Click Save.
    • ✅ This account will store old rent payments not linked to active contracts.

3. Creating a Fee Item for Old Rent Collections

Next, users must create a fee item that will be used when collecting old rent payments.

Steps to Set Up Old Rent Collection as a Fee Item:

  1. Go to Administration → Master Files → Accounting.
  2. Click “Fees Item”.
  3. Click “New” to Add a Fee Item.
  4. Enter Fee Item Name:
    • Example: “Old Rent Collections”
  5. Select Fee Type:
    • Choose “Others” (since this is not linked to lease contracts).
  6. Assign the Old Rent Collection Account for Debit and Credit:
    • Debit: Old Rent Collections
    • Credit: Cash or Bank (depending on payment type)
  7. Click Save.
    • ✅ Now, FalconPro can categorize old rent payments separately.

4. Processing a Receipt for Old Rent Payments

Once the account and fee item are created, users can start collecting old rent payments using FalconPro’s receipt module.

Steps to Process a Tenant’s Old Rent Payment:

  1. Go to Accounting → Receipts.
  2. Click “New” to Create a Receipt.
  3. Select the Receipt Type:
    • Choose “Old Rent Collections” as the fee type.
  4. Select the Property and Unit (Optional):
    • If known, select the unit number associated with the payment.
    • If not available, leave this blank.
  5. Enter the Payment Details:
    • Amount Paid: (e.g., 5,000 AED)
    • Due Date: Choose today’s date or a past date for reference.
    • Payment Method:
      • ✅ Cash
      • ✅ Cheque
      • ✅ Bank Transfer
  6. Enter the Tenant’s Name.
  7. Add a Description:
    • Example: “Old rent collection for Flat 102 covering the period from Jan 2020 – Dec 2020.”
  8. Click Save.
    • ✅ The system now records the tenant’s old rent payment separately from new lease contracts.

5. Verifying the Accounting Entries for Old Rent

To ensure the old rent payment is properly recorded, users can check the general ledger transactions.

Steps to Verify the Old Rent Collection Entry:

  1. Go to Accounting → General Ledger.
  2. Search for “Old Rent Collections”.
  3. Check the Debit and Credit Entries:
    • When rent is received:
      • Debit: Cash/Bank Account
      • Credit: Old Rent Collections Account
    • ✅ This ensures the financial records reflect the old rent collection without affecting active lease contracts.

6. Best Practices for Managing Old Rent in FalconPro

✅ Discuss with your auditor whether to record old rent under revenue or equity.
✅ Always use a separate account for old rent payments to avoid confusion with new leases.
✅ Include clear descriptions in receipts for easy tracking.
✅ Ensure payment receipts are categorized correctly for accurate financial reporting.

Conclusion

FalconPro Real Estate Software provides a structured process for handling old rent collections from periods before system implementation. By creating a separate account, configuring fee items, and processing receipts manually, businesses can ensure accurate tracking of outstanding tenant payments.

FAQs

  1. What happens if I link old rent to an active contract?
    This may cause financial inconsistencies since the contract does not exist in FalconPro. Always use the Old Rent Collections method instead.
  2. Can I process partial payments for old rent?
    Yes, FalconPro allows partial payments under the same Old Rent Collections account.
  3. What should I do if a tenant pays old rent in installments?
    Each payment should be recorded separately as a new receipt under the Old Rent Collections category.
  4. Can I generate reports for old rent collections?
    Yes, use Accounting → Reports → Fee Collections to track all old rent payments separately.
  5. Can I add VAT to old rent payments?
    Consult your auditor or tax advisor on whether VAT applies to old rent collections.

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