Understand property keepback

Summary

Learn about property keepbacks.

This article covers:


About keepbacks

Apart from putting an owner on hold, preventing any payments from being generated. Palace also allows users to keep back a specific amount if they expect a receive an invoice in the near future.

The effect of entering a keep-back amount is that the owner payments are reduced by the keepback amount, and the property account will have a closing balance, which will become an opening balance in the new month.

There are a couple of ways that keep backs get entered into Palace.

Enter the keep back manually
When you enter an invoice, it will ask you to put the keep back on it not enough money
This can be done through a work order
This can be done if rent is paid after being paid up to the Vacate date (This will depend on the system setting)


Create a Keepback

A keepback is initiated on a property profile in Palace. To create a keepback:

  • Go to Properties > Current properties
  • Search for and select the desired property
  • Locate the Keepback section under the property tab
  • Enter Keepback Details:
    • Enter the amount in the This month text box
    • Enter a description or reason for the keepback

Property-keepback.png

Note: Even though it says Keep back this month, it will keep back that amount until the keep-back is removed.

  • To apply the keepback, review the details entered and click:
    • More > Save & view or
    • Save & close to be taken to the current property list

Remove an automatic keepback placed on an invoice

If an invoice cannot be paid due to insufficient funds, it will be marked as “Pending invoice”. A keepback will be placed on the property until sufficient funds are available to pay the invoice. Once funds are available, the invoice can be processed, and you will be asked if you want to reduce (remove) the keepback.

This example is for a supplier invoice:

  • Go to Dashboard > Supplier Invoices
  • Select your filters
    • Agent - A specific agent or all agents
    • Status - Current or all
  • Locate and select the supplier's invoice

Process_invoice.png

  • Click Process
  • The reduce property keep back pop-up will appear for you to reduce (remove) the keep back

Reduce-keepback.png

Note: If there is more than one description, ensure you read the reason carefully to ensure you are not removing the wrong amount, which could result in using funds meant for another purpose.

  • Remove the keepback description before reducing the keepback. This feature is not automatic and will stay in the property’s keep back reason text box, which may cause confusion later
  • Under Reduce, click the toggle to YES
  • Click Process

The screen will refresh, and the selected supplier’s invoice will no longer be visible. If additional invoices exist for the same owner and property, and the owner has sufficient funds, you can repeat the above steps. These changes appear in the change log.

Remove the overpaid Rent Keep back - This keepback does need to be removed manually, and you will need to remove it and then go do the Refund Rent transaction.


Accumulated keepbacks

Accumulated keepback allows you to save an amount each month. For example, you have a painting invoice coming up for $2,000. You cannot take $2,000 off the owner in one lump sum. You decide to save for it at a rate of $200 a month. You would set it up as follows:

  • Go to Properties > Current properties
  • Search for and select the desired property
  • Locate the Keep back section under the property tab
  • Enter accumulation details:
    • The amount in the Accumulation text box
    • Enter a description or reason for the accumulation

Property-keepback.png

  • To apply the keepback, review the details entered and click:
  • More > Save & view or
  • Save & close to be taken to the current property list

The amount in the "This month" text box will increase by the amount in the "Accumulation" text box each month. For instance, if $200 is in both boxes, the "This month" text box will increase to $400 in the second month and to $600 in the third month, and so on.

Note: When placing a description in the “keep back reason(s)” text box, it is important to ensure the information is as detailed as possible. This helps when the keep backs are no longer required after invoices have been paid.


What's next

For more information, view our webinar on keepbacks and holding owner funds.

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