Deducting an Outside Referral Fee: KBA

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Article ID: 4241

Subject: How to Deduct an Outside Referral Fee from a Commission

Last Modified: June 24, 2013

Applies to: Pro Gold i2 2.xx, 3.xx

Purpose: Commission checks are processed via a property record in Pro Gold i2. When the commission is calculated for a property, deductions can also be taken out for items such as Outside Referral Fees.

Procedure: The steps for taking an outside referral fee out of a commission are explained below:

Step 1: Log into Pro Gold

Step 2: Go to Work With Properties:

a. Version 2.xx: Main Menu => Properties Tab => Work with Properties icon

b. Version 3.xx: Main Menu => Transactions => Work with Properties icon

Step 3: Select the desired property through the search screen that appears. (Version 2.xx users select the Find

button to access the Search screen)

Step 4: Click on the Comm. Tree Tab to begin processing commission:

a. Verify overall Gross Commission amount

b. If the default amount is not correct, manually change the Gross Commission or Commission Rate for the overall deal

c. If the default is okay, click the Populate Commission Tree” button to populate the commission tree with the default side Gross Commission Income (GCI) amounts and deduction settings

d. Verify your side GCI amount..

i. Note: The Listing Side and Selling Side GCI amounts are each automatically assigned~~assigned~~ 50% of the overall Gross Commission, but the split between the sides can be overridden manually

Step 5: Select a company deduction for the outside referral fee:

a. In the Company Deductions area (the yellow area), verify the deductions already selected

b. Use the last deduction line in the Company Deductions area to select the new deduction

c. Select LS Professional Referral Fee or SS Professional Referral Fee (depending on the side you

represent in the transaction) from the Deduction dropdown

d. Using the Vendor dropdown within the deduction, select the Vendor that will be paid the deduction

i. Note: If the vendor is not located in the dropdown, double click in the dropdown to access the vendor screen. Click the New button to add a new vendor and fill out the information

e. Verify or manually change the amount in the Approve field

i. By default, the Professional Referral Fee deduction takes 25 percent of the side GCI, unless setup otherwise

f. Weichert Single Entry clients: Be sure to fill out the Listing and/or Seller Referral Broker fields as well as the Listing and/or Selling Referral Amount fields in the Weichert Tab of the property record whenever an outside referral fee is applied to the commission before finishing the commission processing

i. Use the dropdown to select the Listing Referral Broker or Selling Referral Broker (company name) and (If name is not in list, can double click in the field and add the company to the list)

ii. Enter the referral amount in the appropriate field (i.e., Listing Referral Amount or Selling Referral Amount)

Step 6: Select the “Auto Calculate button: to calculate the split between the company and the agent

Step 7: Select the Process Commissions button and finish processing the commission as normal.

Additional Information: Below is a link you can use to access Enhancement HelpNet Center resources, which includes the Knowledge Base Article (KBA) Library, Pro Gold i2 Documentation, and Training Webcasts:

http://secured.progoldi2.com

• The Enhancement HelpNet links are located on the right side of the web page.

Related articles: 4097, 4098, 4190, 4201, 4245, 4246

Keywords: Commission Calculation, Processing Closing, Company Deduction, Outside Referral Fees, Referral Fee, Weichert, 4241