DA - Collecting Company Dollar and Royalty Only on a Transaction

Collecting Company Dollar and Royalty Only

For more information, please visit the most recent Policy & Guidelines Manual section 4.9.1.24

If commissions are paid on the transaction (HUD), the sale or listing commission should be entered into WinMORE and match what is on the HUD just like a normal closing transaction. You will follow the instructions in DA - How to Book a Personal Transaction and Royalty.

If commissions are not paid on the transaction (HUD), and the money to cover Company Dollar and/or Royalty is paid by the agent, the sales or listing commission amounts will be $0 as in the examples below. 

1. Complete page 1 of the DA as usual.
2. Click Save/Part 2
3. Since no commission is paid on the transaction (HUD), the sales or listing commission amount will be 0.
   
   
4. On the associate detail screen, add the associate to the DA.
   1. Gross commission should 0.
   2. Associate split will be 0%.
   3. Royalty split will be 100% 
   4. Associate commission field should be a negative number in matching the amount of company dollar you are collecting.
   5. Tab through the DA to the Associate Royalty and enter the full royalty amount
      Note: this will create a royalty exception. To resolve your royalty exception, please click here for information.
   6. The Associate Check should be the amount they owe the market center for company dollar and royalty.
   7. The Company Commission should be equal to the amount of company dollar collected.
   8. The Pay to KW amount will equal the amount you collected for royalty and company dollar.
      
   9. Click OK
   10. Post the transaction as Check For 1 and use the amount of the check from the Agent and Check number in the appropriate fields. 
   11. The associate will not be issued a commission check.

Pay careful attention to the Royalty Exception effects of completing adjustment DAs. Run your Royalty Exception Report following each Adjustment DA posted and follow the instructions in How to Request a Franchise Royalty Adjustment to address an imbalance between your royalty accounts on your Income Statement well before transmittal. 

Resolving Royalty Exceptions

Requesting Royalty Adjustments