Configure owner uncleared funds

Summary

Understand how to use the uncleared funds option in Palace to manage payment clearance and prevent dishonoured transactions.

This article covers:


Uncleared Funds

This is an option to hold back money that was receipted through Receipt Rent, Receipt Tenancy Invoice, or Receipt Owner. This allows the money to clear in the bank, stopping you from paying out the money in case it is dishonoured. This area is permission-based. If you can't access settings, please ask your manager or administrator for help.

  • Go to System > Settings
  • Click on Management
  • Under Owner
  • Change the toggle to YES for Uncleared Funds to include Direct Payment Type

Settings-owner.png
By default, it only works on payment types of cheques or direct debit.

Uncleared funds (days)

If a tenant has paid by direct debit or cheque, you can hold the money for 2 (or any number of days) until it is cleared. This means if rent is paid just before month-end, you can hold it just in case it is dishonoured. This will show as an uncleared fund on the Owner's Statement.

The count is working days and includes the date of the transaction (Not the entry date).

For example, if you receipt a transaction dated the 1st of February (based on a 3-day count), the system will count the 1st, 2nd, and 3rd of February and release it on the 4th of February. 

In summary

Any funds that are brought in using the transaction types:

  • Receipt Rent
  • Receipt Owner
  • Receipt Tenancy Invoice (Applied to the owner)

Will now be held as uncleared funds for X amount of days (based on your system settings) and will prevent you from processing the following transaction types until cleared:

  • Payment Owner (Single Generation)
  • Invoice Supplier
  • Charge Admin Fee
  • Charge Owner Letting Fee
  • Charge Inspection Fee

Once your funds are cleared can proceed with processing any of the above-mentioned transaction types.

Note: This only applies to those that use either Strict Audit Yes (Owners) or Yes (Properties).

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