Shoulder bind off for poncho

I’m new to knitting so i picked a pattern that is for beginners however, there is a bit about the shoulder shaping that i
m a little bit confused about:

Continuing with shoulder shaping, place center 12 sts on holder, join 2nd ball of yarn and, working both sides at same time, bind off at each neck edge 3 sts once, 2 sts once, and 1 st twice. Continue to work shoulder bind-offs until 1 st remains on each side. Fasten off last st.

The bit about placing 12 stitches on a holder and working with a second ball of yarn is confusing to me. After i start binding off the shoulder, what happens to the 12 stitches on the holder?

There will be directions sooner or later to tell you what to do with those 12sts on the holder. They are part of the neck and will probablly be used to do some finishing around the neck opening. Read down the directions, perhaps to some labeled ‘finishing’ and you shouldl find the 12sts on a holder mentioned.

The 12 sts should stay on the holder until you’re done. Then they’ll be knit as part of the neckband. Look ahead in the neckband or finishing instructions and you’ll see it.