Agent advances can be handled in Loft47 using one of two methods depending on who provides the advance.

• Scenario 1: Advance is provided by a third-party advance company.

• Scenario 2: Advance is provided directly to the agent by the brokerage.

Scenario 1: Advances Paid by a Third-Party Company

For advances provided by an external company, use the Third Party Payment deduction.

1. Add the deduction to the deal using the Third Party Payment deduction type.

2. Enter the advance company name in the Payee field.

3. Once the deal is closed and paid out, Loft47 will generate the payable in Xero or QBO for repayment to the advance company.

Scenario 2: Advances Provided Directly by Your Brokerage

When the brokerage provides the advance directly to an agent, there are four steps to complete the process:

1. Create a bill for the agent to record the advance payment and assign the expense back to the agent.

2. Create a new invoice from the assigned expense for the agent to record the receivable.

3. Add an A/R deduction to the related deal. This will create a credit note in Xero or QBO that can be applied against the agent’s outstanding invoice.

4. Apply the credit note against the agent’s outstanding invoice.

Step 1: Create a Bill for the Agent

Go to Accounts/Purchases or Add New Bill

Enter or Select the following information:

• Select the Agent

• Add the deal address for reference
  

• Use Item #1
  

• Enter the advance amount $ 

• Click on the Assign expenses to a customer

Open "Assign Expenses to a Customer" and select the agent’s name.

Select OK and approve the invoice.

You can now issue payment to the agent by cutting a cheque or post a payment to this bill.

Step 2: Create an Invoice for the Agent

Go to Accounts / Sales or Add New Invoice 

You can create the invoice immediately or wait until the related deals close. Creating it immediately allows you to track the outstanding advance balance as an accounts receivable.
In a few minutes, when you add the agents name to a new invoice it will show you that there is an outstanding billable expense that can be added.  This link will also show in the draft version of the Agents bill if you’d rather enter that line. Click on that link
Select the Advance bill and click Add items: 

If the account code does not populate, reselect Item #01 to refresh the account codes.

Confirm:

• Due date

• Reference

• Advance amount

If applicable, add the Advance Fee as a separate line item.

The billable expense will appear in the invoice description as shown below.

Step 3: Add the Advance Deduction to the Deal

Open the related deal and go to the Deduction page.

Add the Agent Expense Account deduction for the advance amount.

This will create a credit note that can be applied against the agent’s outstanding invoice.

Step 4: Apply the Credit Note to the Invoice

If the invoice has already been created:

1. Open the credit note.

2. Select Options and Allocate Credit.

3. Apply the credit to the outstanding invoice balance.

If the invoice has not yet been created, you can view outstanding items billed to agents that have not been invoiced. Select the item to create the invoice, then apply the Loft47 credit note.

Process Summary

• Third-party advance company: Use the Third Party Payment deduction. Loft47 will create a payable in Xero or QBO after the deal is paid out.
• Brokerage-funded advance: Create a bill → Create an agent invoice → Add an A/R deduction → Apply the credit note.

Following these steps ensures agent advances are properly tracked as both an agent receivable and a deal-related deduction.