Effect on Deductions when Moving Agents from one Office to Another

Effect on Deductions when Moving Agents from one Office to Another

Deduction or fees that are assigned to an Agents profile are associated with a specific office for Accounting and Reporting purposes. 

When you are moving an Agent from one office to another, Loft will archive the current profile deductions so it is important that you re add new profile deductions once you've added a new reporting office. 

Warning for deductions calculating a cap based on "This deduction year to date": 

Deductions, fees or commission plans that are set to "roll over" or "cap out" on "this deduction year to date", meaning the fee resets once the Brokerage has earned the upper limit or cap, will no longer include the prior deductions for the initial office the Agent was licensed in. This also applies to deductions that have graduated levels.

This means that you will need to adjust the "cap" or upper limit for the deductions taken to account for the total amount deducted before the Agent switched offices. 

For example: 

An Agent was in the SOUTH office until May 30 and had a fee of 20% until the Brokerage earned $10,000, the cap. 
Prior to May 30th, $7,000 had already been deducted from several transactions. 

Action Items to Ensure the Cap works for the new office: 
1. When the Agent moves to the NORTH office on June 1, the new deduction should be set up with a cap of $3,000 rather than the original $10,000 to ensure the Agent does not overpay on this fee. 
2. To automate the cap resetting the following year just ensure that the new fee for the new office expires on the last day prior to the commission plan resetting or rolling over. 
3. Add an additional fee to the Agent profile that will start on the first day of the next rolling period with the original cap amount of $10,000. 

*** If you are not concerned with the accounting records being recorded in each separate office for reporting periods you can reach out to support to ask us to merge the financials for the Agent to avoid having to adjust the caps and fees as noted above. 

For more information on Agents moving offices, follow this detailed guide when moving an Agent from one office to another. 

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