What is Allocation Order of Receipts in Strata Master
A Lot Owner Ledger will comprise of various different types of debts that could be due or outstanding at any time a receipt is being processed. These are categorised in Strata Master as -
- Levies Due
- Miscellaneous Owner Invoices
- Future Levies (Levies posted but not yet due)
So that Strata Master knows where to allocate the receipted funds, especially in automatic bank downloads, the debt types listed are arranged in an order of priority.
Where to Find the Allocation Order Setting
1. Navigate to Configure > Association Types
2. Select the relevant Association Type for the Plan and note the Receipting Allocation Order section as below
Practical Aspects of the Allocation Order
This needs consideration, as to how your Agency will manage your portfolio. It is entirely at your discretion. Support will not recommend an allocation order unless it is to overcome a system error.
If You Choose to Allocate the Levies First
Debt recovery is triggered by overdue levies, not invoices or interest. So, if your Lot Owners payments are always allocated to levies first, then they may run up a large debt in invoices or interest that will not trigger debt recovery.
If you Choose to Allocate Miscellaneous Invoices before Levies
You will have the invoices paid promptly, and the unpaid levies will trigger debt recovery. However, will your owners continually complain and seek to have you reverse receipts and reallocate to their choosing ? And if they do, how will you handle that ? What policies will you have in place on errant Lot Owners ?
It is a general practice that Future Dated Levies are the last allocation.
How To Change the Allocation Order
Refer this linked article for instructions on changing the order of allocation. - https://kb.rockend.com/help/changing-allocation-order-of-receipts-in-strata-master