Adjustment DA - Correcting Split between Associates

Adjustment DAs 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 issued checks to the Associate and those checks have already been cashed. Following the process as documented places balance due for the second agent's back in your clearing commissions account so you can cut the checks to the second agent.

If the 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 second agent.

ADJ DA to Correct split between associates

• 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: S
  • Class: P
  • Property Code: R
  • Street Address: Adj to DA ####
  • Click Save/Part 2

• DA Entry – Part 2

  • Price: 0
  • Sales Commission: 0
  • Unit: 0
  • Check For: 1

• Associate Detail Screen

  • Add first associate to DA
  • Type: S
  • Class: P
  • Agency: B
  • Enter zero for unit a negative or positive to adjust their unit from the original transaction (example here: Harvey Specter was given the whole unit originally, but it should have been split 50/50 with Donna Paulsen. Here, we give Harvey a -.5 unit and a negative GCI amount)
  • Enter GCI (negative amount if agent was originally overpaid, positive if underpaid)
  • 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 or underpaid by the associate on the original transaction due to the incorrect split.
  • Note the negative amount in the agent check amount. This is the amount the original agent owes back to the market center.
  • Click OK

• Add the second agent to the DA and enter the unit and GCI that they are either owed (positive) or were overpaid (negative)

• DA Entry – Part 2

  • Post the DA to a deposit
  • Enter the check number and amount of the check received (check for $0 in all instances).
  • Then click the reconcile box. The amount in reconcile should be the amount you owe the associate. (If voiding original checks this will be the difference in the Pay to KW amounts and needed to adjust the difference in royalty/company dollar on the transaction)
  • Save the DA
  • Print the deposit slip in WinMORE

AccountEdge

• Import the deposit into AccountEdge

1. • Write the check to the associate owed $, collect from the associate who owes $
   • Clearing should be zero.

• If the associate(s) hasn't cashed their check yet, you will void the original check by debiting cash and crediting clearing commission.
  • On page 2 of the DA, leave the Check For field as "2" and the check amount as zero, since you will not be receiving money from the associate who was originally paid the incorrect amount.

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.