Adjustment DA – Remove GCI from a Personal Transaction

When an associate has a personal transaction – buying or selling the personal home in which they live – be sure to follow the instructions in DA – Collecting Royalty Only on a Transaction. Occasionally, GCI is booked on the DA when it is not reflected on the HUD; this must be corrected before a royalty adjustment can be issued. 

If this is your first Adjustment DA, please review the Adjustment DA Guide to understand the process for correcting transaction errors through Adjustment DAs. 

Adjustment DAs are used to correct production on a DA that was entered in a prior month and has been transmitted. 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. 

If the DA is in the current month, you will correct/update the original DA.  

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 referral back in your clearing commissions account so you can issue the correct checks/ACH to each party owed.  

If you have the original check un-cashed, then you will void the original check in AE and enter $0.00 as the amount collected in the check box when posting the DA. When you void the original check in AE and write the new check for the correct amount, the difference stays in your clearing commission to write to each party owed. 

Begin with a $0.00 balance in 50060 

This is necessary to confirm when all steps have been completed correctly. 

Step 1 / Page 1 – Closing Information 

• 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 - yes, use S even if it was a listing or dual agency 
• Class: P 
• Property Code: R 
• Street Address: Adj to DA #### 
• Click Save/Part 2

Step 2 / Page 2 – General Commission Information 

Because you are not changing any of the numbers related to sales price or commission listed on the HUD, these entries are 0 to reflect no change. 

• Price: 0 
• Sales Commission: input a negative number to remove the recorded GCI 
• Unit: 0 

Step 3 / Associate Detail Screen 

• Add associate to DA 
• Type: S 
• Class: P 
• Agency: B 
• Unit: 0  
• GCI: input a negative number to remove the recorded GCI  
• Keep tabbing through the detail screen, making sure to zero out E&O Insurance and any automatic deductions. 
• Note the amount in the Associate Check field. If negative (adding a deduction), this is the amount the original agent owes back to the market center. If positive (removing a deduction), this is the amount the market center owes the agent. 
• Click OK 

Page 2 – Complete the Deposit Balancing Information 

To complete the terms on Page 2 to balance the Adjustment DA,  

In the Check For Box, enter 1. 

In the Deposit # Box, enter a unique deposit number; adjustment DAs should always be on a deposit by themselves. 

In the Check Box, 

• Enter 0 in the first box 
• Enter $0.00 in the second box 

In the Reconcile Box 

• Click into the first empty cell to reveal funds balance 
• Add “Pay to KW” in the Description field 

Recording the Transaction 

All DAs – regular and Adjustment – must be recorded in AccountEdge/LoneWolf even when no new funds are being received or issued: 

• Save the DA 
• Save the DP 
• Import the DP into AccountEdge or Lonewolf 

You should observe no change in the balance of 50060.  

End with a $0.00 balance in 50060 

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.