Updated Create Transaction wizard
The create transaction process was revamped to support the new commission management structure. It consists of the following steps:
- Enter transaction address and core dates
- Create or add new contacts.
During this step you can assign contacts to your transaction, like Seller, Buyer, Lender, etc. When you start typing, the system shows you all available options across contacts and users.
When you enter a name that doesn’t exist in the database the system automatically shows you the “create new contact” window with an option to populate email address and phone number.
- Setup commissions for buying and listing side, then assign agents.
During this step you enter Total Gross Commission (TGC), select which side you represent (you can represent both by assigning the same company to each side).
Assign agents and enter additional income and/or pre-commission deductions
- Additional income is something that you charge on top of TGC, for example MLS fee, Listing Fee, etc.
- Pre-commission deduction is something you deduct on the company level before agent commissions are calculated, for example referral fee, franchise fee, etc.
Click on the create transaction button to finalize the process.
Transaction > Commissions
The following section describes commission management interface on the transaction level. You can access it by opening any of your transactions and navigating to Assets > Commissions.
This picture outlines the structure of the commission management module
You need to go through the following steps to calculate your transaction commissions.
Some steps may be not applicable depending on what commission structure you have.
- Identify side. This is something that you do when you create a transaction: you identify which side you represent. You can change it by selecting the side you need and clicking on the EDIT button.
- Set up total gross commission. This information is populated to the system during the create transaction process. If you want to change Total Gross you need to click on the Action button and select the Change Total Gross option.
- Change Award Distribution. You can change it by clicking on the Action button and selecting the Change Award Distribution option.
- Add agents and allocate commission. Use the Add Agent button to add agents and then click on the “Award Allocation” to change commission split between them.
- Add additional income. Additional income is something that you charge on top of TGC, for example MLS fee, Listing Fee, etc. Additional income may be either shared or unshared. Shared goes to commission allocation base, unshared contributes to office income.
- Pre commission deductions. Pre-commission deduction is something you deduct on the company level before agent commissions get calculated, for example referral fee, franchise fee, etc.
- Agent plan. By clicking on any agent you see individual commission plan, at the top it shows commission allocation base that includes gross commission and additional income. After that the system has 3 sections
- Pre-split deductions – shows items that you can deduct before split, this is usually something you do on the individual level, for example E&O fee, Desk fee, etc.
- Split – split can be setup as simple percentage-based agent/broker split, as a flat fee or as a sliding scale. Please take a look at use case listed below to learn more information on how to set up a sliding scale (tier based) commission plan.
- Post-split deductions – post split deductions contain items that agents pay from what they make (post-split). Usually a transaction fee, but may be E&O fee, technology fee, etc.
- Calculate commissions – once you’ve completed setting up commissions you need to calculate them. This converts all %-based items to dollar amounts. After this moment commission information can be used by other transactions that use sliding scale structure.
- Generate CDA [being implemented] and/or individual commission statement. Commission Disbursement Form and Individual commission statement can be generated in the system; you can save as PDF, print, or email them from the system.
How to manage commission templates? [being implemented]
Template management is one of top priorities for us, it’s being implemented and will be available within two week timeframe.
How to select a different commission plan for a given agent? [Being implemented]
Once we have an interface to manage commission templates we will introduce the option to assign templates to agents and switch commission plans within transactions. It’s being implemented and will be available within a two-week timeframe.
How to set up a sliding scale plan?
Please watch this one minute tutorial that explains how to setup a sliding scale commission plan for existing transaction.
Sliding scale with a cap + flat fee? If you have a capped sliding scale structure you can set it up in the system by adding a sliding scale plan and a post-split sliding scale payment. Please watch the following tutorial to learn more about the configuration process.
- Total Gross Commission – usually referred to as TGC, it’s either a flat fee or a % of price sold.
- Award distribution – distribution of TGC between sides (ex. 5% TGC, each side gets 2.5%)
- Gross commission – calculated for each side, TGC multiplied by Award distribution.
- Gross income – gross commission plus all extra income (either shared or unshared)
- Shared Income – shared income goes to commission allocation base
- Unshared Income – unshared contributes to office income
- Award Allocation – commission allocation between agents on the same side (two agents have a 60/40 split between them)
- Pre-commission deductions – a list of all deductions like, referral fee, franchise fee, etc.
- Office deductions – flat list of expense items including payments to beneficiaries, other side and/or 3rd party (ex. bonus to agents, listing fee paid to other side, tc fee paid to tc, etc.)
- Office net – office income less office deductions
- Commission Allocation Base – a list of shared income items, including gross commission, from the office breakdown
- Commission allocation – agent’s award allocation %
- Adjusted Basis – commission allocation less pre-commission deductions
- Pre-split – dynamic list of individual items before split. may be $,%, sliding scale
- Split – hard coded item that may be either a $, % or sliding scale
- Post-split deductions – dynamic list of all items after split. may be $,%, sliding scale
- Other Income – list of all unshared income items assigned to agent, ex. bonus from office portion, payments from other beneficiaries, etc.
- Net Commission – adjusted basis minus pre-split deductions plus split minus post-split deductions plus other Income