Adjusting for bank or wire fees deducted from commission deposit

Adjusting for bank or wire fees deducted from commission deposit

Sometimes, the entity issuing commission funds withholds an amount for bank, service, or wire fees.

To record this:
  1. Ensure the full commission is recorded on the Commissions page.
  2. Create a “Reduce AR” deduction if one doesn’t exist. This reduces the expected deposit and automatically offsets the commission payable G/L. If you don't have a Reduce AR deduction, you will need to create one in your Deduction Template page found under your Brokerage menu.  https://support.loft47.com/portal/en/kb/articles/deductions101#Reduce_AR
  3. Add the deduction on the Deal Deduction's page and enter the fee as a positive amount. Loft will reduce the expected funds accordingly.
  4. If the brokerage is covering the fee, adjust the agent’s deductions by reducing their fees (enter a negative amount). This lowers the brokerage’s income.

    • Related Articles

    • 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 ...

    • 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 ...

    • Paying Mentor fees, Third Party payouts, and Agent Savings with Payment Processors

      !!Important: Please read before proceeding. Third-party payments from payment processors CAN NOT BE REVERSED, so please make sure everything is correct before you finalize a payment. Loft47 offers several options for processing payments and ...

    • Beginning Balance/Mid Year/Year End Commission & Deduction adjustments

      When switching Back office software Mid year we require to add ytd adjustments for agents commissions, production and fee information in order to have accurate 1099 and T4A information. This is also the case for agent's switching from being payable ...

    • How to Create a New Deal as an Admin

      Navigate the Deal Menu Click New Deal in the menu on the left - add the information as well as the Deal Source, either Company or Agent. Fill out as much as you can, but don't worry if you can't fill out all the fields or have information that ...