Adjusting a transaction for bank or wire fees deducted from the commission deposit check
There are times when the Entity issuing commission funds will withhold a certain amount to cover bank, service or wire fees.
In order to record that amount:
1. You will want to ensure you record the correct amount of commissions on the commissions page.
2. Create a deduction (if you don't have one already) of the type "reduce AR" - this is a Deduction that reduces the expected funds to be received on a deal. The offset is ALWAYS defaulted to commission payable. For more information, check out our deductions 101 article here: https://support.loft47.com/portal/en/kb/articles/deductions101#Types_of_Deductions
3. Add this deduction on the deals deduction page and enter the amount of the bank/wire fee. Even though you are reducing the expected deposit amount you will want to enter a postiive number on this fee. Loft knows to reduce the expected amount.
In order to record that amount:
1. You will want to ensure you record the correct amount of commissions on the commissions page.
2. Create a deduction (if you don't have one already) of the type "reduce AR" - this is a Deduction that reduces the expected funds to be received on a deal. The offset is ALWAYS defaulted to commission payable. For more information, check out our deductions 101 article here: https://support.loft47.com/portal/en/kb/articles/deductions101#Types_of_Deductions
3. Add this deduction on the deals deduction page and enter the amount of the bank/wire fee. Even though you are reducing the expected deposit amount you will want to enter a postiive number on this fee. Loft knows to reduce the expected amount.
4. If the Brokerage would like to cover this amount for their Agent they can reduce their fees to the Agent by editing the active deductions or adding a new deduction for a negative amount. This will reduce the amount of income the Brokerage will receive.
Related Articles
PAYLOAD - HOW TO SET UP A NEW BANK ACCOUNT IN LOFT 47
Loft47 has embedded the payload.co payment gateway to offer direct payouts to agents for their commission on deals. Payload tracks your brokerages transaction payouts during the month, and Payload will bill your brokerage once a month so you may pay ...Adjusting a deal if an Agent has been overpaid or underpaid commissions
There are times when an Agent is paid out on a deal and we get information after that fact that means the Brokerage either needs to recover funds back from the Agent or need to pay the Agent a little more. The good news is that you don’t necessarily ...How to add a deposit
Whether you're adding a Trust deposit or receiving commission funds on a deal, you'll use the Add a Deposit module in a deal. First, head to the Add a Deposit menu under the Deal parent menu. Next, Choose the bank account you're depositing to Next ...Payload: Paying Mentor fees, Third Party payouts, and Agent Savings
!!Important Please read before proceeding: Third party paying from Payload CAN NOT BE REVERSED, so please make sure everything is correct before you finalize a payment. There are different scenarios to consider so please click the on the scenario ...Adjusting your Deductions for Tax Reporting
Determining How you will Report Whether you're reporting Gross, Full or Partial NET Commissions, you will have to adjust each deduction accordingly to how you will be reporting. Here's the definitions for all three ways to report: Gross Commissions ...