Understanding Creditor Priority Flags

  • Last updated on June 21, 2022 at 6:02 AM

Summary 

Priority flags allow you to identify important creditors and invoices such as your local council and water supplier who's invoices are often interest bearing. Funds are allocated on a priority basis that can be overridden if necessary, see priority allocation rules below:  
  1. Invoices flagged as priority
  2. Invoices of creditors flagged as priority
  3. Invoice due date
  4. Invoice created date/time

How it Works

Today is the 15/7/16 and we are going to pay our creditors.
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  • Oliver owner has a balance of $4050. 
  • He owes Annie Agent $316.25 in Management Fees. 
  • His outstanding invoices amount to $5576.25 which is more that his balance, so we will not be able to pay all of the invoices. 
  • Annie's Management Fees will be withheld, reducing Oliver's available balance to $3733.75  
Note: Management Fees are withheld by default, to assure that there will be funds available to pay Annie when she processes her owner payments/statements. The default may be overridden during the Pay Creditor wizard.
These three outstanding invoices are prioritised highest, as they are flagged as Priority Invoices.


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  • Sydney Water has also been flagged as a Priority Creditor. This means that it will be allocated funds first, even though the invoice from Carrey's Electrical has an earlier due date. 
  • Carrey's Electrical is next to be allocated funds as its due date is earlier that Carpet Country's.
  • Carpet Country is allocated next. 
  • Allocation of these three invoices has reduced Oliver's balance to $1193.75.                                    
The next three invoices have no priority flags, so will be allocated on due date. Greg and Harry have invoices that are due on the same date, so the priority will be determined on the date that the invoice was created. 


  • normal.png The Pay Creditor wizard will stop allocating funds at this point, as the next outstanding invoice (Kenny Smythe) is a larger amount than Oliver's balance. 
  • Funds will not be allocated to Greg or Harry even though Oliver's balance will cover these invoices. 
  • The Pay Creditor wizard will stop here and give you the option to adjust which invoices will be paid.

We know that rent on Oliver's property is due on the 18/7/16 so have decided not to pay Carpet Country today, as that invoice is not due until 25/7/16.

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  • During Step 3. of the Pay Creditor wizard, we find Oliver's invoices listed on the Insufficient Funds page, allowing us to make adjustments
  • We use the toggle buttons to deallocate funds from Carpet Country's invoice
  • This increases Oliver's balance to $2018.75
  • Allowing us to pay Kenny, using the toggle button to allocate funds to his invoice
  • Carpet Country, Greg's Gardens and Harry the Handyman will then be paid on the 18/7/16 after the new rent has been receipted.

Note: If you are going to Pay Ownerships after you finish creditors, there will be no funds to pay to Oliver this Payment Run. The Pay Ownerships > pane will show Oliver's );" >Pay Amount as 0.00 (zero). Annie's $316.25 will be visible under Fees and the Outstanding Invoices amount will be $138.75.