"The Net-off function is designed to ensure that an owner of multiple properties is not overpaid when some of their properties have an overdrawn balance.
1. This is done by creating a reverse payment for the overdrawn properties in order to reduce the total of all payments to the balance on the owner account.
2. Payment and reverse payments will usually clear the property balance back to zero.
3. Net off only applies if the owner balance is positive, otherwise the owner is not paid at all.
4. An owner is also not paid if the payment method on the owner record is set to Hold.
5. An owner may also not be paid if a property with a positive balance has a keep back amount that reduces the amount to be paid for that property, resulting in the total of all properties to zero or negative.
6. Palace first checks how much is to be paid for each property by adjusting the property balance by the keep back amount, and adding up the resulting total of all properties.
7. If that calculated amount is still positive, then payments will be generated for each property, some of which may be reverse payments for overdrawn properties.
8. If that calculated amount is negative or zero, no payments will be generated.
NOTE that a keep back amount on one property has no effect on other properties. An owner will still be paid for other properties even if there is a very large keep back amount on one property.
A further "net-off" circumstance can prevent the whole owner generation process from proceeding.
1. This is where the net off function creates a reverse payment for a property that is allocated to it's own bank account.
2. Palace can only create a bank import file to put money into bank accounts - it cannot take money out of a bank account.
3. In order to proceed, that owner record must either be placed on hold to allow the other owners to be paid, OR the overdrawn property must be switched to another bank account so that the net off can take effect.
Users may also wish to check all overdrawn properties before generating owner payments, and manually creating transactions to move money from one property to another to eliminate the overdrawn balance.
This puts the user fully in control over what the owner will be paid.