When a Market Center elects to accept prepayment of an associate’s company dollar and agent royalty cap, it is imperative the following procedures are followed to ensure Profit Share, 1099 income, and WinMORE’s cap tracking abilities are not disrupted.
Adjustment DA to Record Prepayment of full cap:
- Create New DA
- Enter the first day of the current month for both the Closing Date and the Contract Date
- Enter NS (Note Sale) in the Type field.
- Enter P (Property) in the Class field.
- Enter X for Property Code
- Tab and enter the period in the street number field.
- Tab and enter “Prepayment of Cap – Agent Name" in the street name field.
- Click Save/Part 2
- Enter Zero for the price, Listing %, Sales %, and Units, and Commission Fields
- Change the “Check For” field to 1
- Click on the Associates on this DA button and add the associate to the DA
- For Type, enter S for Sale
- For Class, enter P for Property
- For Agency, enter B for Buyer
- Enter 0 For Units
- Enter 0 in the Gross Field.
- Tab to the Associate Commissions Field and change the amount to the prepaid cap amount as a negative number.(EX -18,000.00 )
- Zero out any E&O insurance that populates
- Enter the amount of royalty as $3000.
- Continue to tab through and zero out any deductions or donations that automatically populate
- Associate check amount should be a negative amount equaling the amount they are prepaying.
- The Pay to KW amount should be the full amount the agent is prepaying (company dollar plus royalty)
- Click OK
- On page 2 of the DA, enter the Check # and tab to the check amount field. Enter the full amount (Cap + Royalty)
- Post the DA and Save it.
Note:You will get a Error DA_Verify message.This indicates the transaction is not calculating franchise royalty.
26. Print the deposit slip in WinMORE and import it into AccountEdge
This will result in a royalty exception since the Agent Royalty was manually input as the full $3000; however Franchise Royalty charged to the Market Center is $0 (No GCI to collect Franchise Royalty from).
Follow the instructions here for a royalty adjustment to pay the Royalty to KWRI.