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.

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