Paying an Agent through Back Office: A Step-by-Step Guide

Paying an Agent through Back Office: A Step-by-Step Guide

This guide provides a detailed procedure for paying an agent using the Back Office system. The process involves verifying commission amounts from closing documents and bank statements, then entering and posting the payment in the Back Office system.

Step 1: Gather Necessary Documents

Before you begin, ensure you have the following documents readily available and open on your computer:

• Email: Access to the email containing the closing documents.
• Bank Account: A tab open to the business's bank account to verify incoming funds.
• Closing Documents (Settlement Statement): The PDF document from the closing.

Step 2: Verify Commission and Fees

1. Locate Commission on Settlement Statement:
   • Open the settlement statement PDF.
   • Scroll through the document, looking for "Admin Fee" or "Commission" in the line items.
   • On the Seller's Settlement Statement, find the "Agent Compensation to Acquire Homes" line. This will show the total gross commission earned.
   • Note the exact amount (e.g., $12,636.25).
2. Verify Funds in the Bank Account:
   • Switch to your bank account tab.
   • Confirm that a deposit for the exact commission amount noted on the settlement statement has been received. This ensures the funds are available for disbursement.

Step 3: Navigate to the Transaction in Back Office

1. Log in to Back Office: Access your Back Office account.
2. Go to Pipeline: Click on "Pipeline" in the main navigation menu.
3. Find the Transaction: Use the search bar or filters (e.g., this month, last month) to locate the specific transaction by its address or name (e.g., Reindeer Circle).
4. Access the Finance Section: On the left-hand side menu for the transaction, click on the "Finance" option, which will take you to the "Commissions" page.

Step 4: Review and Adjust Commission Details

1. Confirm Gross Commission:
   • On the "Commissions" page, verify that the "Total Gross" amount matches the commission you found on the settlement statement.
   • Click on the "Gross Income" field to open a pop-up window and confirm the amount.
   • Click "Save" to close the pop-up.
2. Add/Verify the Agent:
   • Under the "Buying Side" or "Listing Side" section, ensure the correct agent is listed.
   • If the agent is not listed, click "Add agent" and search for them in the list.
   • Click "Save" to add the agent.
   • Once the agent is added, their payment plan (e.g., 2.75% commission) should automatically be applied. You will rarely need to change this.
3. Handle Additional Fees (if applicable):
   • Client-Paid Admin Fee: If the settlement statement shows an admin fee paid by the client, click "Add pre-commission deduction."
     • In the pop-up, enter the name of the deduction (e.g., "Client Paid Admin Fee").
     • Enter the amount.
     • In the "Received from" field, select the client's name from the user list.
     • Click "Add" and then "Save" to apply the deduction.
   • Referral Fee: If there's a referral fee, click "Add pre-commission deduction."
     • Enter the name of the deduction (e.g., "Referral to Rob Rymuth").
     • Select the calculation type (e.g., "% of gross income") and enter the percentage.
     • In the "Paid to" field, select the contact for the referral.
     • Click "Add" and then "Save."

Step 5: Post the Transaction to the General Ledger

1. Finalize Commission: Click the "Action" button at the top right, then select "Finalize Commission."
2. Post to General Ledger: Click "Action" again and choose "Post to General Ledger." This will open a window with a breakdown of payments.
3. Record Incoming Funds:
   • Find the income section, which should list the commission from the seller.
   • Click on the income line item.
   • A new window will pop up. Check the "Funds Already Received" box.
   • Enter the date the funds were received (e.g., the 17th).
   • Select the payment method (e.g., Bank check).
   • Enter the full amount received.
   • Click "Create."
4. Review Expenses: Review the expense line items, which should include the agent's commission and the office net.
   • Confirm that the amounts for the agent and the office net are correct according to the split.
5. Post: Click the "Post" button to finalize the transaction and post all entries to the general ledger.

Step 6: Pay the Agent via ACH

1. Navigate to the Ledger: After posting, you will be taken to the "Transaction Ledger" page. You can also access this from the main menu on the left.
2. Initiate Payment:
   • Find the payment line item for the agent (e.g., "Payment (received)").
   • Click the "Action" button and select "Payment ACH."
3. Confirm Payment Details:
   • A pop-up will show the agent's name, bank account, and the full amount to be paid.
   • Enter the amount to be paid.
4. Process Payment: Click the "Pay" button to send the ACH payment to the agent.

The system will now process the payment and record the transaction in QuickBooks, completing the entire payout procedure.