Clicking Clawback against a landlord expense will refund the balance to the landlord. It is most commonly used when an invoice has been incorrectly raised, and functions as a credit note process.
The process differs depending on what stage of processing the expense is at.
1. Expense has not yet been deducted, and has not been paid to the contractor
If the expense has not yet been deducted or has not been included in a now-complete payment run, it can be deleted by clicking the red X.
Go to Financials > Landlord deductions
Locate the expense (users may need to check the Closed page, which can be accessed from the top left)
Within the Delete column, click the red X
The red X will not show if this is not applicable as an option, so if the red X shows then the expense can just be deleted without clawing back.
2. Expense has been deducted but not paid to the contractor
If clawing back, and the expense has not been paid to the contractor, the landlord will instantly be refunded.
Go to Financials > Landlord deductions
Locate the deduction to be clawed back (users may need to check the Closed page, which can be accessed from the top left)
Within the Delete column, click on Clawback (shown below)
As above, if the contractor has not been paid, the landlord will have the balance of the deduction refunded to them immediately. This will show in the landlord's ledger, to pay out on the next payment run.
3. Expense has been deducted and paid to the contractor
If clawing back, and the expense has been paid to the contractor, SME Professional will set a process in place that allows the user to deduct this from the next payment to the contractor, after which the funds will automatically funnel through to the landlord's ledger to pay out.
Go to Financials > Landlord deductions
Locate the deduction to be clawed back (users may need to check the Closed page, which can be accessed from the top left)
Within the Delete column, click on Clawback (shown below)
4. Go to Contractors > Contractor summary
5. Locate the contractor and click the arrow icon (
) to expand the items
6. If a balance is available, pay the contractor as normal, ensuring the clawback is included in the payment like any other invoice.
Note: Do not click Clawback received. If not enough funds are available, users will need to wait until there are sufficient processed expenses to deduct the payment from before paying the contractor.
7. After processing the payment, the refund will show in the landlord's ledger ready to pay out on the next payment run.
4. Expense has been deducted and paid to the contractor, and the contractor has directly refunded the money to the agent
Clawback received should only be selected if the contractor refunds the money directly, and the user no longer needs to reduce the next payment to the contractor.
Assign the returned funds to the property as Landlord other income (tax applicable)
Go to Financials > Landlord deductions
Locate the deduction to be clawed back (users may need to check the Closed page, which can be accessed from the top left)
Within the Delete column, click on Clawback (shown below)
5. Go to Contractors > Contractor summary
6. Locate the contractor and click the arrow icon () to expand the items
7. Click Clawback received
5. The contractor has refunded the money directly but a commission has been taken
Navigate to Financials > Unassigned lines
Click on the ID number of the refund transaction to split it
In the first amount box, enter the full amount due back to the landlord (this will include the commission)
Set the category as the property and the subcategory as Landlord other income
Select Clawback difference at the bottom of the page
Click Add lines above and the full deduction amount will be refunded to the landlord's balance
In Financials > Unassigned lines there will be a negative transaction for the commission amount
Click the pencil icon against this transaction
Assign this to the property as Landlord fee refund (to draw down profits by the commission amount)
Go to Financials > Landlord deductions
Locate the deduction to be clawed back (users may need to check the Closed page, which can be accessed from the top left)
Within the Delete column, click on Clawback (shown below)
13. Go to Contractors > Contractor summary
14. Locate the contractor and click the arrow icon () to expand the items
15. Click Clawback received