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Adjustment DA - Company Dollar Transfer (Sending)

Updated

In an Associate transfer situation, please consult the KWRI Policies & Guidelines 4.9.1.35 Transferring regarding the cap amount owed to the originating market center from the receiving market center.

The tracking system described in Tracking Caps Across Multiple Market Centers will facilitate confirmation of

Sending Company Dollar

It is very important for MCAs to send company dollar in the same period it has been booked to prevent profit share discrepancies. Always send advanced notification by email to the receiving MCA so that they are prepared to process the receiving side in the same period also, before transmittal. 

 

  1. If an outside broker record is not already created for the other Market Center, create one.
    1. In WinMORE, click Enter and then Outside Broker.
    2. Enter the other Market Center’s information.
    3. Click Save.
  2. At the end of the month, prior to transmittal, the sending Market Center will pull a DA list for the month’s closings for each associate that transferred. (In WinMORE, click Print, then DA List. Select sub-total by agent name, DA Number, and then select Individual, select your associates and select Posted. Enter the dates for the beginning and end of the current month and select printer.) Review the Co_Comm column and calculate the percentage of Company Dollar to be paid to the other Market Center per the agreement.
  3. Prepare an adjustment DA for this percentage as follows:
    1. In WinMORE, click Enter and select DA.
    2. Enter the same date in the current month for both the closing and contract date.
    3. Select Adjustment Type “Co$Transfer.”
    4. Under Type enter NS for Note Sale.
    5. Under Class enter O for other.
    6. Under Property Code enter R for Resale.
    7. Under Street # enter the year and month; for example, for September 2017 you would enter 201709, February 2017 would be 201702, etc.
    8. Under Street Name enter ″Transfer CO$ to MC # 9999″ (9999 being the number of the Market Center receiving the Company Dollar). This allows you to easily search for this DA later.
    9. Tab through and click Save/Part 2.  Send_1.png
  4. On Part 2 of the DA entry:
    1. Enter $0 for the price and $0 commission.
    2. Go to Outside and enter the Company Dollar amount. For example, if it were a 50 percent split and the DA list for an associate shows $2,000 in Company Commission, you would enter $1,000 in the Outside box.
    3. Enter 0 units.                     send_2.png                 
  5. Click “Associate on this DA” and enter the associate’s ID.
    1. Tab through the DA setting the DA Type Code (Sale) and Class (Property) and Agency (Buyer).
    2. In the Outside Broker Detail pop-up box, select the Keller Williams office that you are paying this Company Dollar to.
    3. Enter 0 in Associate Split (This will take the entire commission adjustment from company dollar).
    4. Tab through and, using this example, you will see a - $1,000 Company Commission and a -$1,000 in the Pay to KW.                                                                                                                      Special Note: The adjusted volume will appear as a negative number. This is fine because when the other Market Center posts this referral to the associate, the adjusted volume will be added back in and for awards both Market Centers GCI will be added together.  send_company_dollar.JPG
  6. Post all the Adjustment DAs for Company Dollar transfers on the same deposit number.
    1. Enter Check for: 1.
    2. Enter 'None' in the Check # field, and 0 in the Check Amount field.
    3. Click under the Reconcile box and, using this example, -1,000.00 will appear.
    4. In Description, enter “CO$ Tran to MC# 9999” (9999 being the number of the Market Center receiving the Company Dollar).
    5. Print the deposit slip and import it into AccountEdge or Lone Wolf. The -$1,000 will appear in your clearing account.
    6. In the accounting software, cut a check to the Keller Williams office you are paying and code this to the clearing account (U.S) or Other Broker account (Canada).  send_4.png
  7. Print the Anniversary DA Company Dollar report for the associate(s) (mark “totals only—NO”). Send this and a check to the receiving Market Center.  send_5.png
  8. The Company Dollar or GCI on your associate’s Company Dollar Anniversary DA list will be reduced by the amount of Company Dollar transferred. In order to keep track of this, so your associates will not overpay on Company Dollar, you will need to reduce the associate’s cap by the Company Dollar amount paid out each month to the receiving market center.
    1. Open the associate’s record and reduce the Company Dollar cap by this amount.
    2. Click Save.
  9. If the Associate involved was not already capped on royalty, this process will create a royalty exception. As long as the process was followed correctly, the exception doesn't mean you did anything wrong, just that you had a legitimate case where royalty was not collected on the GCI. Submit a royalty adjustment request to MCASupport@kw.com following the instructions in How to Request a Franchise Royalty Adjustment. 

NOTE: In their anniversary month when you run the Royalty Exceptions report, their cap will be reset according to the cap reset procedures.

Tracking Caps Across Multiple Market Centers

 

Special Considerations for incubating new Market Centers

  1. The host MCA prepares two new AccountEdge accounts as follows:
    • Cash – Incubating MC
    • Note Payable – Incubating MC Name
  2. The transfer of company dollar will be recorded using the steps above, with the exception of the sending the monthly check. Until such time as the other market center is approved and has their WinMORE system, the host market center shall maintain the funds.
  3. In the accounting software, cut a check to deposit into the bank account for holding the incubating funds as specified above.
  4. Record the deposit to the incubating funds account, code it the “Notes Payable - Incubating MC Name” liability account.
  5. Once the incubating Market Center is approved (i.e., has an active Market Center number), the MCA from the host Market Center will cut a check and code it to Notes Payable – Incubating MC Name to zero out the account. All Anniversary DA Company Dollar reports for the months of company dollar transfer must accompany the check to the Incubating market center.
  6. Once both Market Centers have access to WinMORE, all remaining closings between host MC and incubating MC will be entered using the Company Dollar Transfer (U.S. and Canada) to allow Profit Share calculation in both Market Centers.

 

For instructions on receiving company dollar click here

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