When approving advances, make sure the amount requested does not exceed the agents portion of the commission (The amount AFTER company dollar and royalty). Advances are loans by the advancement company and should NOT reduce the amount of the commission to the market center, ONLY to the agent.
The full commission amount should be credited to the associate and should count as income for him or her. The agent check is reduced to cover the advance given to them by the commission advance company.
Booking in WinMORE:
- Setup a Deduction, payable to the commissions advance company in WinMORE through Enter Deductions.
- The DA will still be for the full commission, all applicable splits are paid, and the reimbursement to the company will come out of the associate’s net check when it closes.
- Add the deduction to the DA for the amount of the advance.
NOTE: If the commission advance company received a check from the title company, WinMORE will still expect the full commission to come to the Market Center since this is a deduction from the Associate's check. Therefore, you will need to use the reconcile box and enter the amount of the advance with a note that the advance was paid from closing at the title company.