Print the Royalty Exceptions Report Again Right After Transmittal
The simple 30-second activity of running and printing (save to PDF works too) the Royalty Exceptions Report is what actually resets your associates’ company dollar and royalty anniversaries. Until you “print” this report, your associates who are supposed to reset this month – won't.
When running and printing the Royalty Exceptions Report is delayed – and especially if you delay until transmittal at the end of the month – the results include
- Missing planned, cap managed cash flow for the market center – and potentially not profiting
- Delaying your associates’ capping speed expectations – especially if they are looking to cap faster than last year
- Negatively affecting your associates’ business budgets – making them believe they have more income than they really do
That’s why it’s vital that your immediate post-transmittal activities include run and print the Royalty Exceptions Report – just as we include in the monthly MCA Checklist above and attached.
And that’s why the pop-up persists until you do.
IDENTIFY ROYALTY EXCEPTIONS
REPORT: WinMORE > Month-End > End of Month Reports > Royalty Exceptions
The royalty exceptions report was designed to detect three types of exceptions:
- Individual’s Royalty cap is not the same Royalty cap that is set for most agents in the MC.
- Individual has received KW Anniversary GCI exceeding their Royalty cap but their Royalty Base total is a lesser amount
- Individual has received KW Anniversary GCI less than their Royalty cap but their Royalty Base is less than their KW Anniversary GCI
Rachel Zane's AGT royalty is lower than TOT; this means that the DA processor manually lowered the WinMORE-calculated royalty owed by the associate. This happens when an associate has been overcharged royalty; refunds are due and a royalty adjustment request is required.
Louis Litt's AGT royalty is higher than TOT; this means that the DA processor manually raised the WinMORE-calculated royalty owed by the associate. This can happen when an associate pre-pays royalty or pays only royalty on a personal transaction where GCI is $0.00.
Harvey Specter has his royalty base set to $150,000 in WinMORE. As the company-wide royalty base is $50,000, the allowable changes to royalty base are a result of either a dually affiliate associate closing transactions in multiple market centers or a married couple who operate as independent agents (option 3 in Married Couples - Syncing Royalty Anniversary Date and Sharing Caps).
Commissions are totaled for each agent by summing all commissions paid in their year to date anniversary period.
If there are data entry errors at the MC level, this report will highlight that fact. Errors could mean that the MC will pay less Royalty to KWRI/Region than is owed.
RESOLVING ROYALTY EXCEPTIONS
Discovering the cause for each exception may take some sleuthing and conversations with your associates if you are in your first 12 months as an MCA - the causes of royalty exceptions are stories that the math in the report does not tell for us.
- Whenever an associate shows on your report, begin by printing each associate's Royalty Anniversary Report in detail - click NO when it asks if you want to print a summary.
- Click here to see directions on how to pull the report.
- Find the DA(s) where TOT and AGT do not match - make sure for any associate on the report with spouse in the market center, that you run them BOTH on the report.
- Review the Opportunity and DA details to see what they reveal.
- Call each associate or married couple and discuss the details of the DAs where TOT and AGT do not match.
- Present any challenging situations or formal royalty exception requests by the 21st (or next business day) of each month.
- There should be zero exceptions on your Royalty Exceptions Report when you transmit each month.
- NOTE: Most exceptions will require a Franchise Royalty Adjustment. Please send the required documents to MCASupport@kw.com. See this article for the required documents.
- ONLY WITH KWRI APPROVAL: Resolve the exception by going to the associate's record in WinMORE, click on the Commissions tab, and enter an explanation in the Royalty Explanation box. Save the record, and the exception will come off of your royalty exceptions report.
Your guide is in the article How to Request a Franchise Royalty Adjustment where the allowable exceptions are laid out; these can give you a hint as to what might have happened.