Last updated: 12 October 2020
Jurisdiction: ALL, except where noted
PEXA’s Financial Settlement Schedule (FSS) is a collaborative tool that contains electronic financial transaction directions for all source and destination line items. All payments are disbursed automatically at settlement, so you’ll no longer spend time waiting for cheques to clear.
On this page, you’ll learn how to:
The Financial Settlement Schedule (FSS) is completed by each participant prior to finalising a transfer in PEXA. The FSS should be completed once the following has occurred:
Note: This section is relevant to users who have access to the Enhanced Settlement Summary (currently SA subscribers)
The Balance due to Vendor* is an agreed amount (between the Proprietor on Title and Incoming Proprietor) that the vendor will receive from the purchaser. This is calculated by purchase price, minus deposit paid, plus/minus net adjustments. The Balance due to Vendor amount is mandatory in the Workspace and the responsibility to enter and agree on this amount is shared between the Proprietor on Title and Incoming Proprietor.
Either the Proprietor on Title or Incoming Proprietor can enter this amount in the FSS. After one participant enters this amount, the other participant (for example, the Proprietor on Title if the Incoming Proprietor entered this amount, or vice versa) can agree to this amount (either via a confirmation dialog, or by signing the FSS).
*This terminology varies based on your jurisdiction:
The Incoming Proprietor and Proprietor on Title are required to enter their destination and source line items.
The following table explains the field options that can be selected when creating Line Items in the financial Settlement Schedule.
Source and Destination Line Item Categories |
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FSS tab |
Description |
Available options |
Select this option if… |
|
Source |
Funds required to settle the transfer transaction |
Source Categories |
Loans proceeds |
You are acting on behalf of a financial institution providing loan funds |
You client has deposited funds to your trust account or the PEXA Source account (whichever is registered as a source account in your profile). Note: Currently only trust accounts with CBA, Westpac, NAB, and ANZ can be registered with PEXA. You must ‘Verify’ and ‘Authorise’ any finds coming from trust. |
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Loan Registry Lodgement Fees / Stamp Duty /. FHOG / PEXA Fees |
You want to clearly identify which source funds are to be allocated to particular fees or outgoings (e.g. stamp duty). |
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Linked Settlement |
You have linked two or more Workspaces for settlement and funds from a preceding Workspace will be used as source funds in the current Workspace. |
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Other |
Funds do not relate to one of the predefined source categories, such as where you represent a Vendor who is required to contribute source funds, for example, where purchase price is not sufficient to payout the vendor’s loan. |
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Purchaser’s Equity |
If there is a shortfall to be drawn. |
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Destination |
Where the settlement funds are going |
Destination Categories |
Loan Payout |
If you act for a lender requiring the loan to be paid out at settlement. |
Third Party Beneficiary / Body Corporate Fees / Council Rates / Water Rates |
Both parties (representatives of the Vendor and Purchaser) are required to Sign these financial line items and will have visibility of the account and BSB numbers. |
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Linked Financial Settlement (Interim Account) |
If you are linking two or more Workspace for Sequential Settlement. |
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Vendor’s Funds |
If you have surplus funds to be disbursed to the Vendor. |
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Professional Fees |
Trust account: Your practice’s trust account. Office account: Your office/everyday account. |
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Other |
Funds do not relate to one of the predefined destination categories. Examples include funds for coverage of a statutory charge or payment. The other participants won’t see the account and BSB number, They will see the category and dollar amount only. |
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Vendor’s Funds |
If there is a vendor surplus to be disbursed. |
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These optional fields are relevant for practitioners representing financial institutions. Both are for informational purposes only and provide ability to include details which will appear on settlement reports.
This information does not drive any functionality in PEXA. It will appear in the financial Line Item details.
Underlying Account Details (optional field): For example, the source Financial Institution is providing loan funds and they want to record the actual loan account that the funds are coming from.
Final Account Details (optional field): For example, where a Financial Institution or practitioner is disbursing all funds to a single account they can then enter a ‘final’ account which shows the actual account that funds are to be disbursed to after settlement; (this would be a manual movement external to PEXA).
Note: This section is relevant to users who have access to the Enhanced Settlement Summary (currently SA subscribers)
Depending on who is assigned responsibility for handling the shortfall or the surplus amount, the buttons available on this screen will vary according to the participant’s Workspace role.
Continue to the next article to find out about Verifying and Authorising Source Funds.
Completing the Getting Started with PEXA program? See whats next.
Now that you'know how the Financial Settlement Schedule operates, learn about how you can verify and authorise funds for settlement in the article Verifying and Authorising Source Funds.
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