Why use a prepayment bucket?
A prepayment bucket enables you to hold funds on behalf of a tenancy contact that are not required to be disbursed immediately. This is particularly useful when a tenant pays in advance, or when you wish to set funds aside for a specific recurring expense, such as water rates or maintenance charges. Once configured, Rex PM can automatically allocate those funds when a matching invoice is received, removing the need to process each payment manually and ensuring the right charges are covered at the right time.
How to create a prepayment bucket
- Click on Settings.
Click on Prepayments.
Click on Add prepayment bucket.
Add the name of the prepayment bucket.
- Add the chart of accounts this bucket relates to.
- Tick the box to Automatically allocate funds to invoices using the specified chart of account(s).
- Click on Add bucket.
How automatic allocation works
When the automatic allocation option is enabled, invoices will only be paid automatically if they exclusively match the chart of accounts defined in the prepayment bucket.
For example, if you have set up a prepayment bucket for Water Rates and linked it to the Water Rates chart of accounts, any invoice categorised solely under Water Rates will be automatically paid from that bucket. However, if an invoice includes any additional chart of accounts — such as Utilities Expense alongside Water Rates — Rex PM will not automatically allocate funds to pay it.
To summarise:
- Automatic payment condition: The invoice must only include items from the chart of accounts defined in the prepayment bucket.
- Example: If you have a prepayment bucket for Water Rates and receive an invoice solely for Water Rates, Rex PM will use the funds in that bucket to pay it automatically.
- Exclusion scenario: If the invoice includes Water Rates and any other expense category, such as Utilities Expense, the system will not automatically use the prepayment funds.