Facilities Management
Reconciliation for integrated facilities management companies and service contractors
Reconciliation in Facilities Management
Integrated facilities management (IFM) companies provide housekeeping, security, technical maintenance, and soft services to corporate campuses, hospitals, and commercial properties — typically under multi-year managed service contracts with monthly billing. The business sits at the intersection of high-volume subcontracted labour (where Section 194C TDS applies on every payment) and complex client billing (where TDS is deducted by the client on the IFM invoice). A mid-size IFM company servicing 200 sites with ₹80 Cr annual revenue manages 2,400 monthly client invoices, 1,200 subcontractor invoices, and 3,000+ payroll transactions — with NACH-based collections from some clients and standing instruction payments from others.
Where reconciliation breaks down
These are the structural problems that generic tools cannot solve for Facilities Management businesses.
Multi-site contract billing reconciliation
IFM billing is per site per month, with variable components (manpower deployed, consumables, overtime) added to a fixed base. Client payments often cover multiple sites in a single bank transfer — and clients routinely deduct penalties, credit notes, or TDS before remitting, without advance notice.
TDS on both sides of the contract
IFM companies deduct TDS at 2% under Section 194C on subcontractor invoices (housekeeping, security, technical); clients deduct TDS at 1–2% on IFM invoices. Both flows must be tracked simultaneously — payable TDS for quarterly filing, and receivable TDS for 26AS credit — across potentially hundreds of clients and subcontractors.
Security deposit management
IFM contracts typically require a security deposit (2–3 months of billing) from the client, held for contract duration. Deposits must be tracked per client and refunded at contract end after deducting any outstanding amounts. Mismanaged security deposit accounts are a frequent source of disputes at contract renewal.
Payroll disbursement reconciliation
IFM payroll is disbursed to thousands of site-level staff via NACH or NEFT batch. Payroll amounts vary monthly based on attendance and must be reconciled against client billing (manpower cost recovery) and subcontractor invoices to verify cost accuracy across all sites.
How TransactIG solves this
TransactIG is built by Terra Insight with facilities management-specific configuration, not generic matching logic.
Site-wise billing vs receipt matching
TransactIG allocates multi-site client payments to individual site invoices, identifies deductions applied by the client, and classifies each deduction (TDS, penalty, credit note) as a named variance type.
Dual TDS tracking
Subcontractor TDS (Section 194C payable) and client TDS (Section 194C receivable) are tracked in separate registers with quarterly reconciliation against Form 26AS and TDS return data.
Security deposit ledger
Security deposits are maintained per client with deposit date, amount, and contract expiry. At contract end, the balance is computed net of deductions and flagged for refund — with complete audit trail.
Reconciliation patterns
Configuration presets
No custom development
These presets are included with every Facilities Management deployment of TransactIG. Go live in 2–4 weeks.
Frequently asked questions
How does TransactIG handle a client who pays for 12 sites in one bank transfer?
TransactIG applies the multi-invoice aggregation pattern to allocate the consolidated payment to individual site invoices — either using the exact match or a pro-rata allocation rule configured per client.
Can TransactIG track subcontractor TDS across 150 vendors simultaneously?
Yes. TDS deductions are tracked per vendor across all 150 subcontractors, with quarterly summaries for Form 26Q filing and per-vendor TDS credit reports.
We manage security deposits ranging from ₹2 lakh to ₹50 lakh per client. Can TransactIG track all?
Yes. Each deposit is tracked per client with the full deposit history, any partial deductions applied, and the net refundable balance at any point — with alerts when contracts approach expiry.
How does TransactIG help when a client deducts a penalty from the invoice without prior communication?
The deduction is classified as an unilateral client deduction (penalty or disputed amount) in the variance taxonomy — flagged for review with the account manager rather than automatically accepted as valid.
Ready to automate Facilities Management reconciliation?
Terra Insight will walk you through a live TransactIG demo using facilities management transaction data — matching patterns, variance taxonomy, and ERP integration.