How to Recover an Overpayment from an Agent in Loft

Overview

If an agent has been overpaid (for example due to an incorrect commission split or missed deduction), you can correct the deal and recover the funds while keeping the adjustment hidden from other agents (e.g., co-agent splits should not be exposed to unrelated agents).

In this example, agent John received an extra $1,000 recruiter fee that needs to be recovered from Mina's deal.

Key Principle

• Recruiter fees are grouped so agents only see a net $0 impact where applicable.

• Corrections must not alter historical deductions.

• Recovery is handled through offsetting deductions and Accounts Receivable (A/R), not manual edits to original payouts.

Steps to Correct an Overpayment

1. Re-open the Deal

• Open the affected deal in Loft.

• Do not modify or delete existing original deductions.

2. Add Adjustment Deductions

Click New Deduction and add the following:

• Reverse the overpayment

  • Type: Recruiter Agent Fee

  • Payable to: Agent John who received the overpayment

  • Amount: -$1,000 (negative)

• Create recovery entry

  • Type: Recruiter Agent Fee Recovery

  • Amount: +$1,000 (positive) 

This ensures the system records both the reversal and the repayment obligation.

3. Process Payout

• Go to the Payout Commission page

• You should now see a $0.00 payout for the impacted agent (Mina) 

• Process the $0 payout as normal

This step triggers accounting sync.

4. Accounting Sync (post to QuickBooks or Xero)

• An invoice will be created in QuickBooks /Xero for the overpaid agent

• This represents the $1,000 owed back to the brokerage

5. Collecting the Funds (Optional via Payload)

If you are using Payload for collection:

• Go to the agent’s (John)  profile

• Once the $1,000 appears under Accounts Receivable

• Click Collect A/R

• The system will pull the funds directly from the agent’s (John) bank account via Payload
  
  

Result

• The overpaid amount is corrected in Loft

• The co-agent split remains unaffected and hidden

• The brokerage successfully recovers the $1,000

• Recovery can be completed either via QuickBooks /Xero invoice or Payload collection flow

Summary

This process ensures overpayments are corrected transparently in accounting while keeping internal commission splits clean and preventing unintended visibility to other agents.