Reversing Agent Payouts

Reversing Agent Payouts

IMPORTANT, please read!

Fixing deals are easy but there are a few key things you have to keep in mind.  

One, make sure you always follow what happens at the bank level. If you fix your deal but have changed any of the amounts that have cleared your bank, you will have trouble reconciling.  Two, ONLY USE this method if you HAVEN'T underpaid or overpaid your agent.  If that is the scenario, please follow this help article: https://support.loft47.com/portal/en/kb/articles/adjusting-a-deal-if-an-agent-has-been-overpaid-or-underpaid-commissions or watch the same help article in Video format: https://support.loft47.com/portal/en/kb/articles/correcting-over-under-payments-on-a-deal

If this is not the latter scenario, please proceed :)

REVERSING AGENT PAYOUT

If you get a message notifying you, this can not be reversed, when trying to remove a payout in the deal, this is because the Agent Payout Bill, and/or the income paid bills, payable deductions, credit notes,  and bank transactions associated with the Agent Payout Bill have been marked paid on the Xero/QuickBooks Online side.  The bill’s payments must be removed from the bill and bank transactions must be unreconciled in order to remove transactions on the Loft side. Important, THE BILL MUST NEVER BE DELETED OR VOIDED, see the examples of the possible bill payments and income earned (deposits) you must attend to in your accounting software.

Example of Transactions associated with an Agent bill

Income Paid Bill 

This bill will be the sum of all deductions except Payable types. When an agent is paid out, depending on how your Bank Mapping and the Deduction is set up in Loft, the Income Paid will create a Transfer Out bill.


On Transaction page


Deduction page



Income Earned Transaction

Depending on your Bank Mapping Setup in Loft, your Income paid amount will be automatically transferred to your General/Operating account, this will create the Transfer In Transaction.


See Unreconcile Income Earned Transaction below on how to locate and unreconcile these transactions in your accounting software.

Payable Type Bill

This deduction creates bills to third party recipients or Agents and will either be included (setup to be paid from General/Operating account) or not (setup to be paid from the same account your agent is) In this example, the deduction is set up to be paid from the Commission account.


Transaction page



Deduction page



Credit Type (Credit Note/Memo)

Transaction page

Credit Type deductions will always be included in the Income Paid bill and Income Earned transaction and will create a Credit Note/Memo in your accounting software to apply against outstanding invoices, learn more about Credit Notes/Memos


Deduction page



Remove payments on Bills

In Xero

  1. In the Business menu, select Bills to pay.

  2. Select the Paid tab.

  3. Find and open your paid or partly paid invoice or bill.

  4. Click the blue Payment link in your bill. If you're using new invoicing, click Less payment - [date].

  5. Click Options, then select Remove & Redo.

In QuickBooks Online

  1. Go to the Expenses menu on the left panel.

  2. Select the Expenses tab.

  3. Find and open your paid or partly paid invoice or bill.

  4. Click the blue Payment made link in your bill. 

  5. Click More, then select Delete

Unreconcile Income Earned Transaction

In Xero

  1. In the Accounting menu, select Bank accounts.

  2. Click the name of the bank account that has the account transaction you want to unreconcile.

  3. Find and open the reconciled transaction.

  4. Click Options, then select Unreconcile.

  5. Click OK

In QuickBooks Online

  1. Go to Accounting menu on the left panel.

  2. Under Your Company, select Chart of Accounts.

  3. Choose the account you’re working on, and click on View Register/Account History.

  4. Search & Select the transactions you want to unreconcile.

  5. Keep on clicking the R status until it shows blank or cleared (C).

  6. Click on Save.

  7. Choose Yes in the confirmation window.

** Please note if the payments are contained within a Batch payment then the Batch will have to be removed/undone and replicated again later once you have paid out correctly **

REISSUING CORRECTED PAYOUT

Once you reverse your agent's payout and have corrected the deal, you will have to repay the deal out ensuring that the original payout date remains, you must head to your payout commission's page and do the following:
1. Click on the arrow next to your agent's name to expand the full itemized payout


2. Adjust the payout date and pay out the deal, when prompted to close the deal, if you're confident this has been fixed, you can agree, otherwise say no so you can review your changes in the Transaction's page.




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