Business Center Accounting: Transactions

1. Enter a transaction
2. Correct a transaction

Overview
Now that both your Market Center and your Business Center(s) are set up as Jobs, transactions may be entered into AccountEdge and coded as either a Market Center Revenue or Expense, or a Business Center Revenue or Expense.
It is important now that EVERY transaction you enter into AccountEdge from this day forward be coded to either your Market Center or your Business Center IF it affects a Revenue General Ledger account (those accounts beginning with a 4 in your Chart of Accounts) OR an Expense account (those accounts beginning with either a 5 or a 6).

Agent Billing
When setting up your billing schedule in KWAR2 for the monthly agent bills, make sure to add the job code to each item on the invoices that needs to be tracked for the market center or business center.

Job Coding Transactions
Step 1
To code a transaction to a job, click the Job box arrow,

You will see all of your sub-jobs pop up as illustrated below. Select the appropriate job code:

Step 2
Select the correct sub-job from the pop up list. Click Use Job.

Step 3
Occasionally, you may have invoices or other transactions that are for both your Market Center AND your Business Center. In that case, simply break down the Revenue or Expenses on two lines: one for the Market Center, the other for your Business Center. Use the same General Ledger account for both lines, but enter the Market Center Job on one line and the Business Center Job on the other line. 

Step 4
WinMORE cannot currently distinguish between a BC versus MC closing, do separate deposits in WinMORE. After a Business Center WinMORE deposit is imported into AccountEdge, edit the General JE and add in the appropriate Job number. Do the same thing for a Market Center WinMORE deposit. Here is an example:

Step 5
At End Of Month, using the WinMORE Month End – EOM Reports – Closed Sales Volume by Associate, manually calculate how much Royalty Base and Co $ was paid into the Market Center versus the Business Center. Calculate the percentage of the whole for each profit center and make sure you split out your Agent Royalty, Franchise Royalty, and Profit Sharing based on these percentages.

Using the following formulas you can successfully split out Royalty and Profit Sharing to the two profit centers:

Franchise and Agent Royalty
Calculate % of MC Royalty Base to Total Royalty Base and multiply by 6%. 

Do the same thing for BC Royalty Base.

Profit Sharing
Calculate % of MC Co $ to Total Co $ and multiply the “AGT. PROF. SHARE” amount found on the WinMORE Profit Share Calculation report.

For example:
Total Company $ $60,000 100%
Market Center Co $ $40,000 67%
Business Center Co $ $20,000 33%
Total Royalty Base $225,000 100%
Market Center Royalty Base $130,000 58%
Business Center Royalty Base $ 95,000 42%

Agent and Franchise Royalty Calculations:
Market Center = $130,000 X 6% = $7,800

Business Center = $95,000 X 6% = $5,700

Profit Sharing Calculations:
For this example we’ll assume WinMORE calculated $5,700 to be paid into the KW Profit Sharing Pool.
Market Center = 67% of $5,700 = $3,819
Business Center = 33% of $5,700 = $1,881

This is how the entry would look in AccountEdge:

Correcting Transactions
If data-entry errors are caught during the current month, AccountEdge allows you to edit the transaction. Simply pull up the transaction to be changed, change the Job number to the correct one, and click OK.

Sometimes, however, it is not possible to edit a transaction because it may be dated in a previously transmitted period or other reasons. In that case, to reallocate a Revenue or Expense that was either posted to a Job in error, or not posted at all, follow this procedure:

Step 1
Pull up the transaction that needs to be corrected. Notice the General Ledger account you posted this transaction to because we will need this account number when correcting the transaction. Once you have obtained this account number, click OK to close.

Step 2
Click Accounts from the main AccountEdge menu. Click Record Journal Entry.

Step 3
Enter a line as a debit and another line as a credit for the same dollar amount, and use the same General Ledger account number on both lines. The only change between the two lines will be the Job number and the debit/credit columns. The end result is removing an amount from one Job and adding it to another Job without affecting the General Ledger at all.

Note: This type of correction is not the norm, but is available when needed.



Need Additional Assistance?
If you have any questions regarding your Business Center data, please email MCASupport@kw.com.