Entering Manager Overrides and Bonuses

The Manager Override feature allows you to assign a bonus to a “Manager” as a recruiting or other type of payment. Manager Overrides are calculated on an “end” basis.  We support an unlimited number of Manager Overrides. As well as Assistants.

 

Once assigned to an Agent, the “Manager” will receive a payment – the calculation of which is based on a portion of the Agent’s net commission at closing (after all other applicable fees/deductions) – consisting of a percentage, a flat dollar amount or both. You can select how this should calculate based on the following options: Agent Portion, Gross, Adjusted Gross and Broker Portion.  These values are represented on the Agent Detail window.

Deductions can be based on the following types: Broker Portion or Agent Portion.  By selecting the Broker Portion the offsetting entry in

QuickBooks® will be the Broker Commission expense account and if you select Agent Portion, then the offsetting entry in QuickBooks® will be the Agent Commission Expense account.

 

If the Apply Max. Cap is checked, this will ensure that any values will stop at the amount entered in the Amount field using the Anniversary dates as the criteria for the calculation, meaning if the closing date of the transaction does not fall into the anniversary start and end dates, the calculation will not occur.  The Amt to Date field will display the cumulative amounts collected using the same date criteria as described above.

 

If you do not use Manager Overrides, leave all of these fields blank.

 

The Manager Override will be displayed on both the D1 format of the Transaction Record Sheet, Review Closing and applicable reports.  If an agent has double-ended a transaction with a Manager Override assigned, the Manager’s check/cheque will combine the values from each end into one check/cheque for the selected Manager Override. There is also an Assistant Commission Statement, for the instance where an assistant is paid on a transactional level.

 

If the Manager’s Override exceeds the broker’s portion of the particular transaction, you will presented with the following warning when you try to close the transaction: ““The Manager Override that you are trying to pay exceeds the Broker portion on this transaction, please manually override and adjust the amounts accordingly”

 

Override amounts do NOT increase the gross commission of a “Manager” and do NOT affect the gross commission of Agents. They do, however, reduce the Company or Agent portion of commission.

 

The Manager Override amounts should be reported as Other Income for T4A purposes.

Manager’s Override in QuickBooks®

    Use of the Manager Override will generate a check/cheque payable to the Manager as selected on the commission tab of the Agent.  The check/cheque will be issued from the Pay Manager from Bank account entered on the GL Accounts tab of the Company Profile.

General Ledger Accounts Affected when using the Manager’s Override: 

Managers Commission Expense Account

  • This account is used to track manager bonuses (overrides) paid to Manager(s)/Agent(s) on closing.
  • The amount will post to this account when Manager is paid.
  • The tax payable account will be debited the appropriate tax amount.

 

Pay Manager from Bank

  • This is the bank account that will be affected for the payment and tracking of a Manager Override.
  • If Pay Manager from Bank is the Operating/General bank account, the Manager Override amount will debit the Manager’s Commission Expense account and Credit the Operating/General bank account.
  • If Pay Manager from Bank is another bank account, the Manager Override amount, a journal entry will Debit the Other bank account and Credit the Operating/General bank account.

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