There are occasions where it is necessary to adjust an associate's cap for the current year and then have the cap amount reset on the associates anniversary. WinMORE is designed to handle temporary cap reductions and increases, and then reset the cap amount when the Associate moves into a new anniversary year.
Some situations that might apply would be:
1) Associate transfers to a new market center and is given credit for the amount of company dollar and royalty paid in the prior market center
2) Associate is cap managed and given a number of months with no company dollar taken.
3) Associate is on a team and the team members receive a reduced cap each year.
4) The market center is approved for a reduction in their default company dollar cap.
Associate Record - Commission Tab
There are two fields (for both Company Dollar and Royalty) on the associate record. The Company $ Cap or Royalty Base CAP field in the left column is the current anniversary year cap. The Cap Defaults column on the right is the automatic resetting of caps when the associate enters a new anniversary year.
Each month after transmittal, you will be prompted to run the Royalty Exceptions report. When doing this for the first time each month, WinMORE will look at every associate whose anniversary starts in the current month. WinMORE will set the current year cap field (left column) to the Market Center default cap amount UNLESS there is an amount entered in the Cap Default field in which case it will use the value entered in that field.
Example 1: Cap Management
An associate joins in July and is cap managed to an anniversary date of November. When the associate joins, the current cap amount is entered as 0.00. After the transmittal of October data, the Royalty Exception report process is run and WinMORE will set the cap amount from 0.00 to the market center standard cap unless a different amount was entered in the CAP Defaults Field.
Example 2: Shared Caps and Transfer
A couple transfers from market center A to market center B (in the same region), where they split their production equally. They reached their cap before they transferred. In this case, their caps would be set to 0 since they paid the full cap at the prior market center. In the CAP defaults, 1/2 cap would be entered for each associate since they share a cap and split their production equally.
In this example: The Market Center B standard cap is $20,000 and the royalty base is the standard $50,000.
Example 3: Team Member with Reduced Company Dollar Cap
When an associate joins a team in a Market Center whose policy is to grant team members 1/2 company dollar caps, the company $ CAP and CAP Default fields in the associate's record need to be entered to reflect the half cap. In this example, the team member's cap is half of the standard $20,000 company dollar cap for this market center.
Example 4: Team Member with Increased Company Dollar Cap
There may be instances where you increase an agents cap. To do so, adjust the company $ CAP and CAP Default fields (if the new cap amount is different than the standard).
For example when an agent leaves a team. While on the team the agent had a 1/2 cap of 5000. Leaving the team the CAP becomes 10,000. Adjust the company$ CAP to 10,000 and enter the same in the CAP default only if the amount is different than the standard cap and must stay at this amount when the agent enters a new Anniversary year.