Adjustment DA – Terminate or Cancel a Posted DA

Occasionally an MCA will have a need to fully cancel or terminate a posted and transmitted closing DA. This can happen because of legal action reversing a closing or when a closing is posted twice. Follow the instructions below to use an Adjustment DA to fully reverse a posted DA.

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

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

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: input a negative number to remove the recorded sales price
• Sales Commission: input a negative number to remove the recorded GCI
• Unit: input a negative number to remove the recorded unit(s)

If the original DA included other entries such as concessions, outside referral, and co-broker, enter those here as a negative number as well.

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 enter negative values for any E&O, inside paid, concession adjustments, charitable contributions, and deductions that appear on the original DA.
• 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 2.

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 the original check amount received as a negative number

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
• Receive Money to 50060 where noted as a negative number on the DA
• Spend Money from 50060 where noted as a positive number on the DA

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.