Setting Up General Ledger Accounts (Back Office)

If integrating Emphasys with QuickBooks®, account numbers should match those set in the QuickBooks® Chart of Accounts. Note: if these specific accounts are not setup in in QuickBooks®, please ensure that they are added.

In the Accounting System field, please select which version of QuickBooks® that you are using for the integration.

Back Office supports up to 3 same-type banking system mappings. These accounts are usually the Real Estate Trust/Escrow Account, a Commission Trust Account and an Operating/General Account.

Select GL Accounts from the Setup menu

Account Number – enter the same number as set up on the appropriate account in QuickBooks®

Account Type – select the same account type as set up in QuickBooks®

Account Name – enter the account name as set up in QuickBooks®

Institution – enter your bank’s institution number, if applicable

Transit – enter your bank’s transit number, if applicable

Accounting System ID: enter the same number as entered for the Account No. This field is the one that QuickBooks® uses as its integration flag

Bank Name – enter the name of your bank

Address/City/Prov./State/Postal/Zip – enter your bank’s address information in remaining fields

You do not have to enter all of the accounts that you have set up in QuickBooks®.  You will only need to set up those accounts required by Back Office.  A list of the affected accounts can be found on the Accounting tab of the Company Profile

 

General Ledger Accounts

General /Operating Account

Enter the general ledger account number to be used for the Operating/General bank account.

Escrow /Real Estate Trust/ Account

Enter the general ledger account number to be used for the Real Estate Trust bank account (where trust deposits are held).

Commission Trust (Agent Bank)

Enter the general ledger account number to be used for the Commission Trust bank account, or select the appropriate account based on your local governing body.

Default Advance Bank Account

Enter the appropriate general ledger bank account number to be used to payback an Advance that has been issued against a transaction.  This account could be either your Operating/General bank account or the Commission Trust bank account.  If you opt to use the General/Operating account, through the integration process, the applicable checks/ cheques and/deposits will create accordingly.

Pay Other Broker From Bank

Enter the general ledger bank account number to be used to pay outside brokers.

Pay Referrals From Bank

Enter the general ledger bank account number to be used to pay any referrals. If you opt to use the General/Operating account, through the integration process, the applicable check/cheques and/deposits will create accordingly.

Pay Interest From Bank Acct

Enter the general ledger bank account number to be used to pay any interest earned on deposits.  This will likely be the Real Estate Trust bank account.

Pay Manager From Bank (BR)

Enter the general ledger bank account number to be used to pay the Manager when the calculation is based on the Broker’s portion of commission.  This account will likely be the General /Operating bank account, however it can also be the Commission Trust bank account.

Pay Manager From Bank (AG)

Enter the general ledger bank account number to be used to pay the Manager when the calculation is based on the Agent’s portion of commission.  This account could be either your Operating/General bank account or the Commission Trust bank account.

Pay Withholdings from Bank

Enter the general ledger bank account number to be used for payments of Withholding funds. This account could be either your Operating/General bank account or the Commission Trust bank account.  If you opt to use the General/Operating account, through the integration process, the applicablechecks/ cheques and/deposits will create accordingly.

Pay Employee from Bank

Enter the general ledger bank account number to be used when you opt to pay your Brokers and/or Managers as an Employee. This account could be either your Operating/General bank account or the Commission Trust bank account.  If you opt to use the General/Operating account, through the integration process, the applicable checks/cheques and/deposits will create accordingly

Agent Billing

Enter the general ledger account number to be used for Accounts Receivable as it relates to your Agents.

Commission Income Account

Enter the general ledger income account number to be used for recording commission income. This account is used to track total commission receivable from seller or other party at closing.  The total commission receivable is posted to this account when funds are transferred and/or deposited to the Commission Trust bank account.

Agent Advance Handling Fee

Enter the general ledger income account number to be used to track any fees that will be charged to the Agent for processing an internally issued advance.  This allows the company to charge a fee for the processing of these types of checks/cheques.

Broker Commission Income

Enter the general ledger income account number to be used to track the broker’s portion of commission when a transaction is closed and processed.  Monies are posted to this account when the transfer check/ cheque is created.

Agent Commission Exp.

Enter the general ledger account number to be used to track the amount of commission paid to the Agent when a transaction is closed and processed.

Manager Commission Expense

Enter the general ledger account number to be used to track Manager Override commission paid when a transaction is closed and processed.

Broker Commission Gross Income

Enter the general ledger account number to be used to track commissions paid to internal broker when a transaction is closed and processed.  We suggest you use the Commission Income account for this, so that you have a more accurate view of your company dollar.

Other Broker Expense Acct

Enter the general ledger account number to be used to track commissions paid to outside brokers when the transaction is closed and processed.

Referral Expense Account

Enter the general ledger account number to be used to track referrals paid to outside brokers when a transaction is closed and processed.

Trans./MLS Fee Expense Account

Enter the general ledger account number to be used to track the Transaction Fee/MLS Fee charged to the Agent as an “Off-The-Top” deduction from commission.  Most often, brokers will set up just one Transaction Fee “clearing” account to post both expenses and recoverable(s).

Trans. Clearing Account

Enter the general ledger account number to be used to track Agent advances.  When the Agent is paid an advance, the amount posts to this account as a debit (and a liability to the broker), and when the advance is repaid, this account is credited and zeroed out.

Agent Gross Comm. Expense

Enter the general ledger account number to be used to track the GROSS amount of commission paid to the Agent when a transaction is closed and processed. This account MUST be different than the general ledger allocated to “Agent Commission Exp.” above in order for the 1099 in QuickBooks to generate with the GROSS commission as you require.

Trust Payable

Enter the general ledger account number to be used to track the deposit monies received from the Buyer(s).  The sum of the Real Estate Trust bank account (including interest) + the Term Deposit/GIC account MUST equal the Trust liability account.

Term Deposit/GIC Account

Enter the general ledger account number to be used to track the Term Deposits/GIC certificate amounts.  The sum of the Real Estate Trust bank account (including interest) + the Term Deposit/GIC account MUST equal the Trust Payable liability account.

Trans./MLS Fees Recovered

Enter the general ledger account number to be used to track the Transaction Fee/MLS Fee collected from the Agent as an “Off-The-Top” deduction from commission.  Most often, brokers will set up just one Transaction Fee/MLS Fee “clearing” account to post both Transaction Fee/MLS Fee expenses and Transaction Fee/MLS Fee recoverable(s).

Withholding Clearing 1-3

Enter the general ledger account number to be used to track the Agent’s commission that is withheld.  At the time all outstanding withholding payments are processed and paid, the balance in the Withholding Clearing account should be 0.00.   This account could be either your Operating/General bank account or the Commission Trust bank account.

Third Party Advance Payable

Enter the general ledger account number to be used to track advances that Agents receive from a Third Party, ex. Agent’s Equity.  When the Agent receives the advance from the Third Party, this account will be credited.  When an advance issued by a Third Party is paid back with the Agent’s commission, this account will be debited.

Tax Payable Account

Enter the general ledger account number to be used to track the tax on any commission receivable and earned.  These funds will be remitted to the appropriate taxation agency based on the broker portion of commission only.  Agents are responsible for remitting their Tax earned on his/her portion of commission.

GST/HST/PST/QST Payable Account

Enter the general ledger account number to be used to track the tax on any commission receivable and earned.  These funds will be remitted to the appropriate taxation agency based on the broker portion of commission only.

Funds Transfer Account

Enter the general ledger account number to be used to transfer funds to the General/Operating bank account.  This account is currently being used to transfer the tax portion of the transfer checks/cheque when a transaction is closed and processed.  It is also used to transfer the Agent Advance Handling Fee as well.  This new general ledger account will need to be set up as an “Other Current Liability” account. It is designed as a “clearing” type account for the Tax included in the broker’s portion of commission.  The balance at all times should be 0.00.

Miscellaneous Income Account

Enter the general ledger account number to be used to track the Processing Fee that can now be charged to the Buyer for issuing the interest earned on the deposit.  This amount will display as a credit in QuickBooks®.

Payroll Expense Account

Enter the general ledger account number to be used to track the Payroll Expenses.  This should be the same account that you are using for your staff.

Broker State Tax Expense & Income

Enter the general ledger account number to be used to track as needed

Unshared Income

Enter the general ledger account number used to track additional income above and beyond the commission that is retained by the brokerage.

 

 

 

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