Adjustment DA – A Guide and Library – KWMCAngel

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.

The basic principle behind an Adjustment DA of any kind is that adjustment DAs reflect the addition or subtraction of specific data points – the difference between the original and the corrected. If the new figure is less than the original, enter a negative value; if the new figure is more than the original, enter a positive value. And if there is no change from the original, enter zero.

Adjustment DA FAQs:

do not change posted DAs; those terms remain exactly as transmitted. The Adjustment reflects the addition or subtraction of specific data points.
do not change reports of production transmitted in the past; they are effective the month they are posted.
affect the 1099 income of the year they are posted in, not the year of the original, incorrect DA.
must be saved and the DP imported into accounting, even if no funds are being received or issued.

Adjustment DA Library:

When you have more than one feature to correct, use this Decision Tree to determine the order of corrections. In most cases, you’ll first fully reverse the original associate details and then add the correct associate details:

Adjustment Need	Adjustment DA Library
Is the transaction marked the correct Type – Commercial versus Residential?	Adjustment DA - Correct Property Type on a DA from a Prior Period (Residential vs Commercial)
Is the correct associate given production credit	Adjustment DA – Change Associate Attribution (Wrong Agent Paid on DA)
Is/Are the right associate(s) on the DA with the right unit/GCI splits?	Adjustment DA - Correcting Split between Associates
Does any associate on the DA need a CO$ and/or royalty refund.	Adjustment DA - Refund Company Dollar and Royalty Over-payment
Does any associate on the DA need an outside referral removed from, added to, or changed on the DA?	Adjustment DA – Add, Remove, or Change Who is Charged an Outside Referral
Does any associate on the DA need a concession removed from, added to, or changed on the DA?	Adjustment DA – Add, Remove, or Change Who is Charged a Concession
Does any associate on the DA need a deduction removed from, added to, or changed on the DA?	Adjustment DA – Add, Remove, or Change Who is Charged a Deduction
Does the GCI need to be removed from a closed and transmitted DA (personal closings)?	Adjustment DA – Remove GCI from a Personal Transaction
Does the closed and transmitted DA need to be reversed, cancelled, or terminated?	Adjustment DA – Terminate or Cancel a Posted DA
Are you transferring company dollar to another market center (Sending)?	Adjustment DA - Company Dollar Transfer (Sending)
Have you received a company dollar transfer from another market center (Receiving)?	Adjustment DA - Company Dollar Transfer (Receiving)

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.

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