Royalty Anniversary DA Lists and Royalty Base Updates
If the Launching Market Center has a Host Market Center that it will be receiving transfer agents from, they must acquire a Royalty Anniversary DA List with Detail from the Host Market Center for every agent that they are receiving. This also includes Launch Market Centers who do not have a Host, but will be receiving transfer agents from other Market Centers.
Once the Royalty Anniversary DA List(s) with Detail are received, the Launching Market Center will update the Royalty Base in each Associate’s WinMORE Associate profile in the Commissions tab. This will need to be updated as the Associate(s) close additional transactions as well. For more information on how to update Royalty Base and track Royalty between multiple Market Centers, please see: Tracking Caps Across Multiple Market Centers.
It’s also important to note that because Launching Market Centers do not put DAs in P (Posted) status, that the Company Dollar and Royalty Base on any reports from the Launching Market Center’s WinMORE will not show Company Dollar or Royalty paid until their transmittal month when they move DAs to P status. It is vital that the Launching Market Center tracks the Company Dollar and Royalty paid in by the Associate on a separate spreadsheet so that they do not overpay on either.
Pending Closings (for Launching Market Centers with a Host Market Center ONLY)
Pending closings written during the incubation period at the Host Market Center will usually close with the Host Market Center, or as otherwise agreed to between the Market Center ownership group(s). Once the DA is closed, please see: Incubating Market Center - (U.S. Only) or Incubating Market Center (Canada Only).
The Launching Market Center must not post any DAs in WinMORE until the Market Center is in its transmittal month, and WinMORE’s date reflects that. All DAs created before the transmittal month should be kept in U, or Unposted, status until the transmittal month begins. Then, all DAs will be changed to P status and WinMORE deposits can be imported into AccountEdge. In order to keep these transactions in order, the MCA will want to use holding accounts in AccountEdge for depositing and writing commission checks.
NOTE: As DAs are created and saved prior to the transmittal month, the Company Dollar and Royalty paid on each transaction should be recorded and added to a spreadsheet tracker (see Best Practice: The One Royalty Policy, Dual Affiliations, Tracking Caps, and the Duplicate Associates Report) for both the Host (if applicable) and Launch Market Center to reference while creating DAs. It is possible for an agent to cap on Company Dollar or Royalty before the transmittal month; the MCA needs to track this and pay agents accordingly in AccountEdge (since WinMORE will not cap agents and stop pulling Company Dollar and Royalty on Unposted DAs) so that they do not over- or underpay on Company Dollar or Royalty.
When writing a commission check, the MCA will follow the printout of the Unposted DA and write the commission check to the agent as normal (Banking > Spend Money), with Clearing Commission as the sub-account and the date that the closing occurred as the Date.
When depositing commission checks, the MCA will go to Banking > Receive Money and receive all checks to the sub-account Unidentified Income. The best practice is to include all checks that will be deposited together on the same transaction, to ensure that bank reconciliation is accurate.
Neither Clearing Commission nor Unidentified Income will be at a $0 balance until the transmittal month. The following steps must be completed after WinMORE reflects dates in the transmittal month, and before any other DAs in the transmittal month are created:
- Mark all DAs from prior to the transmittal month as P, or Posted, and change the close date to the first day of the transmittal month
- Enter the same Deposit Number on all DAs prior to the transmittal month, and import that Deposit into AccountEdge
- Go to Accounts > Transaction Journal and open the Deposit’s journal entry
- Change the Cash account in the journal entry to Unidentified Income
- Confirm that Clearing Commission and Unidentified Income have a $0 balance year-to-date (Find > Accounts > search 5-0060 and 2-4000 respectively)