When a new Market Center is in the process of opening, you will be supported by the Launch team, led by the Launch Coordinator. The Launch Coordinator will send you a link to a launch checklist that will be used throughout your launch process. There will be a weekly call with the market center leadership team, the region and the commitment department.
If the MCA is already in the KW system, they can start their MCA training with our on demand MCA JumpStart Course. Visit the JumpStart page on KWConnect to get started.
WinMORE System Date
The WinMORE program is very date specific and because of this it requires that your program be set to the date it was released from KWRI. The WinMORE program is updated each month when the All Associates Update is done on the 21st of the month. This will require a system advance every month on the 21st until your WinMORE program is advanced to the period that corresponds to your first transmittal month. Please contact MCASupport@kw.com for the password and instructions to do this.The Defer Transmittal process rolls the Listings, DAs, and Enroll Dates to the first of the month to which we are deferring. Note: All DAs must have Status = U.
Agent Entry into WinMORE
Once the new Market Center—incubating Market Center—receives all applicable state business and real estate licenses/permits, they will begin inputting Associates into WinMORE. Do the following
- Once the new Market Center WinMORE is up and running, the host Market Center can print ‘Associate Transfer Forms’ from the host WinMORE – Print menu. They will sign (per the instructions on form) and send to the new Market Center for signature and submission to KWRI. These forms should be faxed to KWRI no later than the last business day of the new Market Center’s first transmittal month to ensure timely processing by KWRI.
- For incubating Market Centers: Prior to the month of the new market centers first transmittal these transferring associates will be in the host market center as status =A production status = O.
- It is very important that the host Market Center NOT “Remove” these transferring associates from their WinMORE system until (1) the new Market Center has transmitted AND (2) KWRI sends confirmation of the transfer completion in a future Load All Associates file. Only after this confirmation is received (it will be seen in both Market Center’s during the Load All Associates “Sponsor Change and Transfer” log) can the host Market Center safely “Remove” these associates.
- The host Market Center should change the Associate record Status/Production Status of transferring agents to Status = PO/Production Status = O during the month of the New market centers first transmittal. When they see confirmation during a future Load All Associates that KWRI has processed the transfer(s), then these associates can be removed.
- The original Market Center (referred to as host Market Center) should produce an Anniversary DA List for the incubating Market Center showing all agents who have closed transactions for their anniversary year so that the incubating Market Center can properly record Company Dollar and Royalty Base amounts. Additionally, the host market center should produce a list of pending transactions for the transferring agents.
- For example, if an agent closed $25,000 GCI at the host Market Center and paid in $10,000 Company Dollar; the incubating Market Center would enter a Royalty Base of $25,000 ($50,000 less $25,000) and a Company Dollar base of $8,000 (assuming Company Dollar base is $18,000 less $10,000 already paid). In addition, on page 2 of the associate record, the MCA should make note in the “Royalty Exceptions & Explanations” field: “Agent transferred from MC### on MM/DD/YY with CO$ paid of $$$$ and Royalty GCI of $$$$.”
- The host Market Center should also produce a WinMORE DA List for any pending (unposted) closings of transferring associates and when their transactions close, communicate this, by sending updated Anniversary DA reports to the incubating Market Center so that the associate’s base can be adjusted. Likewise, if the agent has pending transactions with the host, and closes transactions at the incubating Market Center, then the incubating Market Center must let the host Market Center know this by sending updated Anniversary DA reports so the host Market Center can reduce their base amounts for the associate accordingly.
- If an associate’s Anniversary Year rolls over to a new Anniversary Year before the Market Center transmits for the first time, the MCA will need to edit the Associate record Company Dollar Cap and Royalty Base Cap amounts to full Caps. For example, if an agent’s Anniversary date re-sets on March 1st, the Market Center’s first transmittal month is March, and the agent had closings in February, then the MCA would need to post the February DAs with the prior year’s Caps in the Associate record and then increase the Cap amounts before posting the closings that actually occurred in March so that Company Dollar and Royalties are properly taken out of the transactions. This is a good time to contact MCASupport@kw.com for guidance in this process.
- To ensure transferring agents do not over pay royalty, set up a royalty tracking google spreadsheet. Click here for instructions for creating the google spread sheet. Add the spreadsheet to the launch materials folder. The new market center mca and the host mca will both update this sheet while agents are closing transactions in both market centers.
- Transferring agents will use the same Username and Password to access the KW Intranet or their KW email account as they did in the host Market Center. New email addresses are not issued. If your agent is having problems accessing their email or kw.com, please refer to the online help at answers.kw.com or contact Support. You can contact KWRI Tech support directly via Live Chat Monday-Friday 8am-6pm CST by clicking on the question mark icon in the upper right corner of the Command web page and selecting "Chat with Support", or email at email@example.com.
Associate Commission Checks
When you pay associate commission checks in Account Edge, you will always code the check to Clearing Commission account. Associate commission checks are never coded to any Income or Cost of Sale account other than the Clearing Commission account. Click here for further details regarding cutting commission checks.
Pending closings written during incubation at the host Market Center typically close with the host Market Center, or as agreed to between the Market Center ownership groups. Once the DA closes, you will need to refer to Incubating Market Center instructions (Click here for US instructions; Click here for Canada instructions).
The Market Center must not post any closings until WinMORE is in the first transmittal period (see above WinMORE System Date). The MCA should calculate the DA and determine what the actual amount of the check(s) should be, but leave the DA as pending with Status = “U (under Contract).” Money will be received into Account Edge, but not yet recorded in WinMORE. When receiving money into Account Edge (Banking – Receive Money) for closings prior to the transmitting month, use the actual date the transaction occurred and post to account Unidentified Income (2-4000). When paying the agents, use the actual date the transaction occurred and post to account Clearing Commission (5-0060). This process is only used prior to your transmittal month. Note: The clearing commission account (5-0060) will not be zero until after you reconcile the account in your first transmittal month.
In the first transmittal month, post closings in WinMORE. All WinMORE closings must be posted in the month that the Market Center is first transmitting. For example, if the closing actually occurred February 21st, and the Market Center’s first transmittal is for March data, the closings are dated March 1st in WinMORE and in Account Edge.
The MCA will do the following to bring Account Edge into agreement with WinMORE and to correct the Account Edge cash balance(s) for DAs that actually closed prior to the first transmittal month. You must complete ALL of the steps below BEFORE posting DAs that actually did close within the first transmittal month.
- When posting all prior month DAs in WinMORE during your first transmittal month, post only one deposit (all DAs on same deposit #) in WinMORE) for all DAs that were actually closed in the prior month(s). Click here for the instructions.
- After the prior months DAs WinMORE Deposit is imported to Account Edge (US click here for instructions), go to Transaction Journal – General, click the arrow to the left to open this GJ, and edit the cash account to debit account Unidentified Income instead. This will result in a $0 balance in Unidentified Income account (2-4000).
- Run an Account Edge Accounts – Reports - Trial Balance Detail for Clearing Commission dated 1/1/xx thru the last day of month prior to the first transmittal month. The total should equal the total commission checks cut for DAs that closed in month’s prior to the first transmittal month. Create a journal entry dated the last day of the prior month to move the balance of this account to Prepaid Expense, 1-1880, (credit Clearing Commission/debit Prepaid Expense). This results in a $0 balance in the Clearing Commission account in the prior month.
- Create a second journal entry dated the first day of the transmittal month to zero out the Prepaid Expense account (credit Prepaid Expense/debit Clearing Commission).
Run a WinMORE Print – Deposit Summary report.
Run an Account Edge trial balance detail for 4-0010 thru 5-2000 dated for current month only. Confirm that all “Beginning Balances” are $0 and that the “Ending Balance” matches the WinMORE Deposit Summary column totals. Confirm that the Clearing Commission account is now a zero balance.
- Once ALL of the above are complete, the clearing commission account, 5-0060, and the unidentified income account, 2-4000 should be zero year to date. Confirm this by reviewing the KW balance sheet and income statement.
- All current month closed DAs will be posted with their true closing date and assigned to the appropriate deposit number.
- Request an updated anniversary da list from the host market center and confirm the associate’s royalty base and company dollar cap are correct.
Entering Organizational and Start-Up Costs into the Accounting Software
For detailed instructions for entering organizational costs for US & Quebec Market Centers, click here.
For detailed instructions for entering organizational costs for Canadian Market Centres, click here.
Review Organization and Start-up costs with your CPA. Enter all organizational and start-up costs into the accounting software. The organizational and start-up costs entered should only be for those expenses related to the Tax ID of the Keller Williams Market Center. Expenses related to any other entity are not permitted in the KW books. Expenses should be recorded by check (cheque) or journal entry. Deposits should be recorded by entering a journal entry. KWRI guidelines for organizational and capital expenses are:
- Code to Organizational (Start-up) Costs—anything that occurred prior to your Market Center opening the doors for business, excluding anything that qualifies as a Fixed Asset (i.e., printers, furniture, fixtures). Business organizational or start-up costs are the expenses you incur before you actually begin business operations. They may include costs for advertising, legal fees, travel, surveys, and training.
- Code to Furniture and Fixtures—anything that was purchased that could be considered a Fixture or Furniture. Typically assets under $500 are expensed or considered Organizational (Start-up) Costs and are not capitalized, but this is just a general rule.
Code to Office Equipment—anything that was purchased that could be considered Office Equipment (for example, computers, printers, copiers, phones, etc.). Typically assets under $500 are expensed or considered Organizational (Start-up) Costs and are not capitalized, but this is just a general rule.
- Code to Leasehold Improvements—anything that was purchased that could be considered a Leasehold Improvement, including paint, carpet, lighting, architect fees, contractors, etc. Typically assets under $500 are expensed or considered Organizational (Start-up) Costs and are not capitalized, but this is just a general rule.
- You can create other Fixed Asset accounts if you wanted to separate phones and other capital items. This is an OP choice, but not always done. Refer to the KW Chart of Accounts for the Market Center User Defined account number options, or contact MCASupport@kw.com for assistance.
- Code to 9-80xx Opening Cost—anything that is related to opening that occurred after your Market Center opened for business. Opening Costs are the first large purchase(s) to set up office supplies, printed material, recruiting, advertising, grand opening advertising, or parties, etc.
- Code to 6-xxxx true expenses that occurred AFTER your open date. These will all have regionally approved budgets.
- According to KWRI Accounting Guidelines, you should not enter anything into the accounting software (i.e., expenses/spend money) unless you have a receipt. Be sure that you have a receipt for all of your entries (especially those that are reimbursements).
- You should have a set of files with your Balance Sheet accounts and receipts for all debits/credits noted. For your expenses, the file folders should be for vendors.
- At the beginning of the first transmittal month, the MCA will receive an email addressed to their “klrw[mc#]@kw.com” email account from the KW MCAngel Department requesting the accounting software trial balance detail and other specific WinMORE reports. The OP, TL and Region are also copied on this email. The KW MCAngel Department will review the data and any questions or corrective actions will be discussed on the Pre-Transmittal review call.
Associate and Market Center Fees
The host Market Center will be responsible for collecting and paying the Associate Tech fee to the incubating Market Center associates until the incubating market center enters the associates in their WinMORE system. The new or incubating Market Center will enter all associates according to the status combination chart (click here). The new Market Center is responsible for billing and collecting the Associate Tech fee from each of the associates starting with the month the associate is entered in their win more system with status A/A, A/TA, A/TM and A/R. In the same month they are entered into the new Market Center, the host Market Center will change the transferring agents' status to A/O so that both market centers are not charging the Associate Tech fee.
The New Associate Application or Associate Transfer fee is charged for all new entries input into WinMORE, including Market Center staff. This fee is charged every time an associate transfers into a new Market Center, even after incubation. If the incubating/new Market Center chooses not to collect these fees from the agents the first month, then the cost should be absorbed below the line in the Associate Application Fees account, unless you have a regionally approved budget to take this cost as a Recruiting expense.
Market Center Fees
Per the market center Franchise Agreement, the market center is responsible for paying a monthly marketing fee ($79.00) and technology fee ($83.33) to Keller Williams Realty International. This fee is assessed from the market center effective date.
During the launch process, the market center will complete, sign and return a new market center fee calculation and confirmation form. The form will ensure that fees during the launch period are calculated correctly. The form will be sent to market center at the beginning of the first transmittal month.
During the franchise approval process, the Market Center ownership submitted a proposed budget to the Regional Director. The MCA needs these approved budgets (typically in a report named “Forecast Model”) to input into the following areas:
• Input approved budget/goals into the KW Intranet – Goals area. When complete, click “Submit” to send to KWRI and to your region.
• Input into the accounting software – Account List – open each account and click “Budgets” tab to enter.
The MCA must check the klrw[mc#]@kw.com email account multiple times daily. To manage email via Outlook or another desktop application, you will need to turn on that function in your Gmail account. Visit answers.kw.com and search “How to Configure your 20XX Outlook account with Gmail” for instructions. If the MCA also has a personal email account, Outlook and Gmail can easily be set up to check multiple email accounts. Be sure to input the following information into Outlook:
• MCA Name and Market Center# in the Tools – Email Accounts - User Information - Your Name field
• Create a signature in Tools – Options – Mail Format – Signatures that includes the Market Center Name, Market Center#, email address and location (i.e., City and State)
Calculating Market Center Loss Carry-Forward
These instructions apply only to new Market Centers approved and transmitting in the same fiscal year. If your Market Center data spans two fiscal years, see the instructions below. This process is also referred to as LCF. Once your Market Center has the required “Pre Transmittal review” from KWRI Angels and you are certain the data activity is correct, open the accounting software data file (i.e., KWR_MC[mc#].MYO) and reference the KW Financial Statement Guide on KWConnect for detailed instructions on pulling the Income Statement (or click here).
To calculate the LCF figure, note the prior month’s YTD Total KW Owner Profit/Loss and use this amount as your Market Center LCF figure. This will be input into WinMORE – Month End – Profit Share Calculation “Enter the Loss Carry Forward from [prior month]”.
The WinMORE Month End - Set Costs step will be done exactly as outlined in the "Send Monthly Data to KWFS", "Save your KWFS", and "Calculate preliminary set costs" steps of the transmittal checklist.
This figure will be only your current months Total KW Approved Cost figure. Any prior month expenses are realized through the LCF figure entry into WinMORE.
Market Center Whose 1st Transmittal Spans Two Fiscal Years
When a Market Center is approved between the third business day of October and December 31st, there are several accounting issues that must be addressed since the Market Center will have transactions in their first calendar year that must be recorded in their first transmittal month, which takes place the following calendar year.
• Accounting software Data File:
The MCA must follow the Year End Process found on KWConnect - Resources - MCA to open the next Fiscal Year once all current year data entry is complete. It is advised that you do not open the new fiscal year until the KWRI MCAngels completed their “pre-transmittal review” to be sure of no errors in coding. You are allowed to input the next fiscal year’s data normally prior to this process being completed.
During the Open New Fiscal Year process, a file named [year]KWR_MC[MC#].MYO will be created and kept for future reference (i.e. MC650 file for 2010 = 2010KWR_MC650.MYO). This is a very important step.
The data file KWR_MC[MC#].MYO will then have the new fiscal year opened and data entry for the new year will continue normally.
• Prior Fiscal Year Closed Transactions:
The WinMORE program is very date specific. See the above “WinMORE System Date” notes regarding how to change the system date.
If the Market Center agents have closings between the Market Center approval date and December 31st, the DAs in WinMORE will be entered and transmitted in the next year as follows:
1.The commission money received is recorded into accounting software – Banking – Receive Money with the actual date and deposits coded to Unidentified Income.
2.Your Market Center CPA must be informed that, for tax purposes, these entries are income for that year.
3.In the accounting software, set up a new Other Asset account in the Prepaid Expense range named “Commission Payments.”
4.Code all commission checks paid to Agents into accounting software – Banking – Spend Money with the actual check date, coded to the new account set up in Step 3.
5.You will manually produce an IRS Form 1099 for all commission payments made to agents for this first year.
6.In the next year, when you plan to transmit for the first time:
a.Include all of the prior year’s closings in the first WinMORE deposit.
• After this WinMORE deposit is imported into the accounting software, you will edit the journal entry (JE) under Accounts – Transaction Journal – General to change the debit from the cash account to a debit in Unidentified Income. This will result in a $0 balance in Unidentified Income account.Record a JE, dated in your first transmittal month, with a credit to the new “Commission Payments” account set up in Step 3 and a debit to Clearing Commission. After this JE is recorded, the new “Commission Payments” account and Clearing Commission account should both have a zero balance.
Calculating Market Center Loss Carry Forward for Two Fiscal Years:
Once your are certain the prior year’s activity is correct, open the prior year accounting software data file (i.e., 2010KWR_MC[mc#].MYO) and reference the KW Financial Statement Guide on KWConnect for detailed instructions on pulling the Income Statement (or click here).
To calculate the LCF figure, add the prior year’s Month = 12 (December) YTD Total KW Owner Profit to the prior month’s YTD Total KW Owner Profit and use this amount as your Market Center LCF figure. This will be input into WinMORE – Month End – Profit Share Calculation “Enter the Loss Carry Forward from [prior month].”
The WinMORE Month End-Set Costs step will be as outlined in the "Send Monthly Data to KWFS", "Save your KWFS", and "Calculate preliminary set costs" steps of the transmittal checklist. This figure will only be your current months Total KW Approved Cost figure. Any prior month expenses are realized through the LCF figure entry into WinMORE.
IRS Form 1099 for the First Transmittal Year:
You will have to deduct the prior year’s 1099 income from the DAs that recorded the transactions that occurred between the Market Center Approval Date and December 31 of the prior year. Do not include the prior year’s 1099 income in the current year’s 1099. Please consult your CPA or Tax Professional for assistance completing your 1099s if needed.