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FeaturesBlockManOSUpdated March 15, 2026

Service Charge Payment Recording & Arrears Tracking

Service Charge Payment Recording & Arrears Tracking

This feature enables property management agents to record payments received against service charge demands, automatically track arrears balances per unit, and manage debt through a structured escalation workflow — all within the block management platform.

Recording a Payment

Payments are recorded against individual service charge demands raised for a unit.

Required Fields

FieldDescription
Bank Transfer ReferenceThe reference from the bank transaction (e.g. SC-2025-UNIT12)
Payment DateThe date the payment was received
Amount ReceivedThe amount paid (may be less than the demand total for partial payments)

Partial Payments

If the amount received is less than the demand total, the system automatically records the shortfall as an outstanding balance on that demand. The unit's arrears balance is updated accordingly.

Arrears Balances

Arrears are calculated automatically at the unit level:

  • Total Demanded minus Total Received equals Arrears Balance
  • Balances are recalculated in real time whenever a payment is recorded or a new demand is raised
  • Each unit's current arrears balance is visible from the unit detail view and the aged debtors report

Late Payment Interest

Interest can be applied to overdue balances:

  • Interest rules are configured at the OMC or development level in line with the service charge agreement
  • Once configured, interest is calculated on the outstanding balance from the due date
  • Interest charges appear as line items on the unit's account ledger

Payment Plans

For units carrying arrears, a payment plan can be established to formalise an agreed repayment schedule:

  1. Navigate to the unit's arrears record
  2. Create a new payment plan, specifying instalment amounts and due dates
  3. Record each instalment payment as it is received against the plan
  4. The outstanding plan balance reduces with each payment recorded

Payment plans provide a clear audit trail and allow agents to monitor compliance with agreed terms.

Arrears Escalation Workflow

The escalation workflow tracks the progress of arrears cases through defined stages, ensuring consistent and auditable collections activity.

Typical Escalation Stages

  1. Reminder Notice — First contact with the unit owner
  2. Formal Demand — Formal written demand issued
  3. Legal Referral — Case referred to solicitors

Each stage transition is logged with a timestamp and the acting agent, providing a full audit trail for compliance and legal purposes.

Note: Escalation stages may be configured to reflect the OMC's own collections policy.

Aged Debtors Report

The aged debtors report provides a portfolio-wide view of outstanding service charge balances.

Report Structure

Age BucketDescription
0–30 daysRecently overdue balances
31–60 daysModerately aged debt
61–90 daysSignificantly aged debt
90+ daysLong-standing arrears

Using the Report

  • Filter by development or OMC to scope the report
  • Use bucket totals to prioritise escalation activity
  • Export the report for board reporting or auditor review

Bank Feed Reconciliation

In the current release, all payments are entered manually by the property management agent.

The platform is architected to support automated bank feed reconciliation in a future release, which will allow imported bank transactions to be automatically matched against outstanding demands, reducing manual data entry and the risk of misallocation.

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