Register the promoter entity and its project bank accounts

The promoter entity is the company that develops a project. Its books carry every posting and its bank accounts receive the buyers' money, so a project can't take a booking until the promoter is registered, keeps books, and has its collection, RERA separate and operative accounts with their ledgers. Every buyer payment enters the collection account, and the bank sweeps it daily: the escrow share to the RERA separate account, the rest to the operative account. This task takes you from the company record to a green Ready badge on the project.

Before you start

• Company types and bank account purposes come from Lookups. Choosing them needs the View permission on Lookups; without it no company can be created.
• Have the account details to hand exactly as printed by the bank: holder name, account number and the 11-character IFSC.
• The collection, RERA separate and operative accounts are best pinned to their project, so create the project first if you can (see Create a project); the project form can register the promoter in brief with Create new promoter entity, and you complete it here afterwards. An account left "Not project-specific" counts for every project of the promoter.
• Permissions, in the role editor's words: the Create permission on Companies (Administrator, Finance Lead, Project Manager, Accountant, Sales Manager); the Create permission on Bank Accounts (Administrator, Finance Lead, Accountant); the Create permission on Books (Administrator, Finance Lead); the Edit permission on Projects to sync bank ledgers (Administrator, Project Manager, Compliance Officer).

Steps

1. In the sidebar open Masters, choose Companies and click New company at the top right. The New company page opens with "Only the name and type are required; add registrations and people later."
2. Under Identity, type the Company name and choose Promoter Entity as the Company type. The last section changes to RERA & signatory ("The promoter registration under RERA and who signs agreements for the entity."), and Registrations now offers CIN, TAN and Incorporation date as well as PAN and GSTIN.
3. Fill the registrations (PAN, GSTIN, CIN, TAN, turned into capitals, and Incorporation date), then RERA promoter registration no., Authorized signatory and Signatory designation, and under Contact & address the Phone, Email, Address, State, City and PIN code. Add the Legal name if it differs from the trading name and the Entity structure (Private Limited, LLP, Partnership …).
4. Click Create company. You see “Company "<name>" created.” and the company's page opens (see Company) with a Promoter Entity badge beside the name.
5. On the Bank accounts card ("Where this owner is paid, or pays from.") click Add. The panel "New account for <company>" opens with the owner fixed to this company and the holder name filled in. The card shows only with the View permission on Bank Accounts; the same panel opens from Masters > Bank Accounts > New bank account with Owner set to Company, and from the Add account buttons on the project setup wizard's Promoter & bank accounts step, where the purpose and project are already filled in.
6. Choose the Purpose Collection account (the Purpose hint on a company's account reads "Collection, RERA separate, operative, GST, operating, payouts…") and pick the Project the account belongs to (hint "RERA and GST accounts belong to one project."; leave "Not project-specific" for an account shared by all the promoter's projects). Under Account details fill Account holder name, Bank, Branch, Account type (for example Escrow or Current), Account number (6 to 30 letters and digits, no spaces) and the 11-character IFSC. Click Add account. You see "Bank account added." and the account is listed with the purpose and the project underneath.
7. Repeat steps 5 and 6 for the RERA separate account purpose (it receives the escrow share of every sweep and is drawn only for land and construction cost against certificates), the Operative account purpose (the rest of every sweep; the developer's working account, refunds are paid from it) and, if the promoter keeps one, the GST purpose (optional: it is where a buyer's GST is banked apart so it never enters the sweep; without one a buyer's GST is banked into the operative account or goes into the collection account with the rest and is swept). The four purposes are offered only on a company's account. The card now lists every account.
8. Set up the promoter's books under Accounting > Books with Set up books, following Set up the books for a promoter company. Once the books exist and are active, every collection, RERA separate, operative or GST account you save from then on gets its bank ledger at once. If you set up the books before recording the accounts, the ledgers were created when you saved them and you can skip step 10.
9. Open the project from Projects and read the Ready to sell and collect? card on the Project overview. It lists Promoter entity, Books, and Collection account, RERA separate account, Operative account and GST account (optional) with the bank, the last four digits, "(shared)" for an account not pinned to this project, and the ledger code or "no ledger". The badge reads Ready once nothing is missing, otherwise N to fix with the blockers in red.
10. If a blocker reads "The books have no ledger for the collection bank account <bank> ····<last 4>; sync bank ledgers" (or the same for the RERA separate, operative or GST bank account), click Sync bank ledgers beside it. You see "Bank ledgers created: <codes>." and the blocker disappears; one click creates every missing ledger, and the card now shows a ledger code under each account.

What happens next

• The company can be chosen as the promoter of a project (the Promoter entity picker offers Promoter Entity companies only), and its books receive every posting for those projects.
• Each bank ledger sits under the Bank group of the promoter's chart of accounts, named "<bank> ····<last 4> (<purpose> · <project>)", and is flagged RERA escrow so that it is listed in the RERA accounts statement. See Ledgers.
• Receipts against the project's demands go into the collection account by default; a receipt banked elsewhere is saved with a warning. The daily sweep of the collection account is split by the escrow rule in force (70% unless your organization has changed it under Organization > RERA escrow share, or the project carries its own RERA escrow share) between the RERA separate and operative accounts. See Check the RERA accounts and the sweep share.
• With the promoter, books and the three accounts in place, the only remaining gate to selling is the RERA registration when your organization requires it. Finish with Make a project ready to sell.
• Complete the company later with Edit on its page (see Edit company); renaming an account doesn't rename its ledger.

If something goes wrong

• "A company with this name already exists." on Company name: the promoter is already registered; open it from the list. See Company name already used.
• "Choosing a company type needs the Lookups permission." on the form: ask for the View permission on Lookups. See Lookups permission needed.
• "Enter the 11-character IFSC, e.g. HDFC0001234" or "Enter a valid 11-character IFSC code." on IFSC: an IFSC is four letters, a zero and six letters or digits; a 10-character code is missing one, usually a zero. See Bank account cannot be saved, changed or deleted.
• "An account with this number and IFSC already exists" on Account number: the account is already recorded, possibly under another owner. See Bank account cannot be saved, changed or deleted.
• The readiness card shows "<Promoter> keeps no books yet; set them up under Accounting > Books", "<Promoter> has no collection bank account for this project", "<Promoter> has no RERA separate bank account for this project" or "<Promoter> has no operative bank account for this project": one of steps 6 to 8 is still missing, or the account was pinned to another project. See Project is not ready to sell.
• Sync bank ledgers is greyed out with "Creating the ledgers needs permission to edit projects", or answers "The promoter keeps no books yet; set them up under Accounting > Books.": see Not ready to sell and collect.
• Set up books refuses with "Books can be set up only for a Promoter Entity company.": the company type isn't Promoter Entity; change it with Edit on the company page.

Related

• New company
• Company
• Edit company
• Bank accounts
• Companies
• Lookups
• Books
• Ledgers
• New project
• Project setup wizard
• Project overview
• Organization
• Set up the books for a promoter company
• Create a project
• Check the RERA accounts and the sweep share