Adjustment DA's are used to correct production on a DA that was entered in a prior month. If the DA is in the current month, you will just correct/update the original DA. An adjustment DA is like doing a journal entry where when you take the initial DA and the adjustment DA and add the numbers together, you should end up with the final distribution of commissions.
Note: The below example assumes you have issues checks to the Associate and those checks have already been cashed. Following the process as documented places balance due for the referral back in your clearing commissions account so you can cut the checks to the outside broker.
If you have they original check is un-cashed, then you will void the original check and enter 0.00 as the amount collected in the check box when posting the DA. When you void the original check and write the new check for the correct amount the difference stays in your clearing commission to write to the outside broker.
ADJ DA to Pay Outside Referral
DA Entry – Part 1
- Create a new DA
- Close Date: First day of current month
- Contract Date: First day of current month
- Adjustment Type: Regular
- Change to DA#: Original DA number
- Type: NS OR NL depending on initial transaction type (NS is a note sale that carries no unit value) Class: P
- Property Code: R
- Street Address: add Adj to DA #### to the beginning of the street number
- Click Save/Part 2
DA Entry – Part 2
- Price: 0
- Sales Commission: 0
- Unit: 0
- Check For: 1
- Outside Referral: enter amount to be paid to outside broker
Associate Detail Screen
- Add associate to DA
- Type: S or L (depending on original transaction)
- Class: P
- Agency: B
- Enter zero for unit
- Enter zero for GCI
- Enter amount of outside referral in outside box, tab and choose the outside broker
- Keep tabbing through the detail screen, making sure to zero out E&O Insurance and any automatic deductions.
- Accept the defaults for each other field, the DA will adjust for company dollar and royalty that were overpaid by the associate on the original transaction due to the outside referral not being included originally.
- Note the negative agent check amount - this is the amount you need to collect back from your associate.
- Click OK
DA Entry – Part 2
- Post the DA to a deposit (it is recommended that adjustment DAs be posted to their own deposit to assist with balancing your clearing commission account)
- Enter the check number and amount of the check you received back from the original associate (enter 0 if you are voiding the original check).
- Save the DA
- Print the deposit slip in WinMORE
- Collect from the associate the amount on the detail page of the DA where it displays the agent check amount.
- Import the deposit into AccountEdge (this includes the deposit of the check you collect back from the agent, make sure to deposit that check)
- Write the check to the outside company
- Clearing should be zero.