Sometimes a deal needs to be adjusted after an agent has already been paid due to updated information. In these cases, you don’t need to reverse and repost the original transactions. Instead, Loft allows you to quickly update allocations or deductions, and it will automatically record the difference to ensure the deal and your accounting records stay accurate.

An Agent underpayment can happen in three ways; 

• You deducted a fee that you shouldn’t have 

• You charge them more than you should have for a specific fee

• You recorded lower commissions than what they actually received

An Agent overpayment can happen in three ways; 

• You forget to deduct a fee 

• You charge them less than you should have

• You recorded higher commissions than what they actually received 

UNDERPAYMENT

Rather than unreconciling transactions and reposting the original payout, you should make a quick adjustment directly in the deal within Loft and then post the updated payout.

If the agent has already been paid, you will need to record an additional payout. In this case, the brokerage owes the agent money. Loft will generate a new payout, which will create an additional bill to the agent in your accounting platform.

If the underpayment is due to overcharged deductions, follow the steps below to make the necessary adjustments.

In this example:

• The agent earned $3,000 in commission
• Two fees were deducted, resulting in a net payout of $2,200

We will correct the deal fee, as the agent should have been charged $300 instead of $500. This reduces the total deductions by $200, meaning the agent was underpaid. The corrected net pay should be $2,400.

You can complete this adjustment in either of the following ways:

• Add a new Deal Fee of -$200 to offset the original $500 deduction, which will automatically update the net payout to $2,400 after saving, or
• Override the existing Deal Fee deduction and update it directly to $300

Both options ensure the deductions are correctly aligned and the agent is paid the correct amount.

Before:

After:

Add an additional Deal Fee of -$200. Since $500 was already deducted, this brings the total fee to $300 and adjusts the net pay to $2,400.00.    

Alternatively, you can override the existing deal fee deduction and update it directly to the corrected total of $300 as shown below.

Now, by going to the Payout Commission page, you will see that Loft has generated a second payout, which will create an additional bill to the agent.

If a cheque has not yet been issued for the initial bill, you can group both payouts together and issue a single combined payment. Alternatively, you may process each payout separately.

Please ensure you are paying from the correct bank account where the funds are currently held to avoid any transfer or reconciliation issues between accounts.

Make sure you are paying from the bank account that is currently holding funds to avoid any transfer issues between accounts.

Underpayment: Commission Recorded Too Low

• Increase the commission amount on the Commission page.
• Check that the allocation updates automatically (or manually correct it if it was overridden).
• Go to Payout Commission. A new payout will appear for the difference.
• Post it to create a second invoice for the agent.

OVERPAYMENT

Rather than unreconciling transactions and reposting the original payout, make a quick adjustment to the deal in Loft and post the updated payout.

If the agent has already been paid, you will need to recover the funds. In this case, the agent owes the brokerage money. Loft will create a negative payout, which will generate an invoice to the agent in your accounting platform. This amount will be added to their accounts receivable balance.

If the overpayment is due to undercharged deductions, follow the steps below to make the necessary adjustments.

• The agent earned $3,000 in commission
• Two fees were deducted, resulting in a net payout of $2,200

We need to increase the deal fee from $500 to $700, adding an additional $200 to the total deductions. You can do this by either:

• Adding a new fee of the same type for $200, or
• Overriding the existing deduction to reflect the corrected total of $700

This update ensures the total fee is accurate and the overpayment is properly corrected.

Before:

After: 

Now by going to the Payout Commission page you can see that Loft has created a negative payout which will post an invoice to the agent in Xero. 

Overpayment: Commission Recorded Too High

• Reduce the commission amount on the Commission page.
• Check that the allocation updates automatically (or manually adjust it if it was overridden).
• Go to Payout Commission. A negative payout will appear since the commission is now lower than what was originally paid.
• Post it to generate an invoice to the agent.

Make sure you are paying from the bank account that is currently holding funds to avoid any transfer issues between accounts.