Understanding fund flows

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Transfers

Transfers allow you to move funds collected from payments to different owner accounts. We support a variety of use cases for fund movements. When creating invoices, subscriptions, or one-off payments, you can specify different transfer behaviours that dictate the fund flows of the payments.

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Transfer behaviours

Yorlet supports three main transfer behaviours:

• automatic - initiates transfers to owners of the supplied unit’s ownership structure.

• owner - initiates transfers directly to a specific owner.

• none - will not initiate any transfers.

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Automatic transfer behaviour

Automatic transfers are recommended when you want to transfer funds based on the current ownership structure of a supplied unit. You can set up Unit Ownership records to create these structures for accurately moving funds to the desired owner accounts.

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Owner transfer behaviour

Owner transfers are recommended when you want to transfer funds to a single owner, regardless of the ownership structure of the unit. For example, you want to collect utilities from customers and need to allocate these funds to a supplier owner account.

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Collecting fees

When initiating transfers you can collect fees on the transfer amount with Collections, this enables you to charge owners for services, like rent collection. When using the automatic transfer behaviour fees are automatically deducted from the owner based on the unit’s owner fees. For example:

• An invoice for £1,200 is successfully paid

• The associated unit has the management fee set to 10%

• The line item of the invoice has the type rent and is set to automatic transfer

• Yorlet initiates a transfer to the owner of the unit

• An owner payment is created on the destination owner account

• Yorlet creates a collection for £120 from the owner based on the unit’s management fee

• Your platform balance is credited by £120, the amount collected from the owner’s balance

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Transfer events

This table illustrates the events and resources that are created when transferring funds:

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Reversing transfers

You can reverse a transfer to correct a misallocation of funds to an owner’s balance. You can do this by navigating to the transfer you wish to reverse and clicking Reverse in the top right. You can then specify the amount to reverse and add a note about the details of the reversal.

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Refunding payments

When you refund payments collected through Yorlet Payments, Yorlet will also reverse the associated transfers to owners and refund any collections made against those transfers’ destination owner payments.