Help Center : How to create a new Closed Deal: Part 12 - Payments

In this tutorial, we will go over the requirements for In-House Vendors, applying a payment to multiple invoices, distribution of the payment amount, and overriding a split plan.

Instructions

To open the Payment Application form from the Invoicing tab, either click on the Apply Payment button at the top, or click on the Payment Application tab itself.

Before the form opens, the system will check to make sure all of the In-House Vendors listed on the Fee Splits form (i.e. all of the internal brokers who have been allocated a portion of the Total Fee amount) have a valid Split Plan.

Split Plans are set up for each broker by your system administrator as part of their Personnel File record. Each internal broker should have at least one plan that encompasses today’s date and that has a defined Net Split percent for the brokers’ current production credit, or the gross fee amount they have earned so far this year.

If one or both of those requirements are not met, the system will display a message listing which brokers have missing or invalid information, and exactly which details are missing.

If all requirements are met, the form will open. At the top are fields that pertain to the entire payment. Some are pre-populated with default entries, such as today’s date or another default value.

Below that is a list of invoices that are billed and have an outstanding balance.

As you enter the Payment Amount, the system will automatically apply that amount across the invoices listed, in order of invoice Due Date. You can change that distribution manually if you need to pay the invoices in a different order.

Any invoices that are currently marked as “Due Upon Event” will be adjusted to “Receivable” as part of the payment application process. This is generally only relevant for accrual-based accounting practices.

In the Payment Distribution section below the invoices list, you’ll see all of the Contacts and Vendors who have been allocated a portion of this deal’s fees with a summary of expected, paid, and remaining gross fee amounts.

The system will calculate and fill in the suggested distribution for this payment. You can change that distribution manually – for example, if the outside broker is supposed to be paid in full first.

You will be required to make sure the entire payment amount is distributed before you can submit this form.

Although the Split Plan for each internal broker has already been defined on the Fee Splits tab, you may see a different Split Plan listed on this form for the same broker. That usually happens because the payment is being applied in a new year with a new Split Plan for that year.

If you need to, you can change the Split Plan for this payment by clicking on the plan name.

Select from the list of plans that are valid for this Payment Date, then click on the Save icon. Clicking the [X] icon will cancel any changes.

The Fixed Net Split fields allow you to override the calculation of the Net Split amount that the system normally performs once you submit a payment.

If you had populated the Fixed Net Split % field on the Fee Splits form for a vendor, it will already be filled in on the Payment Application form.

However, this form does not pre-populate the Fixed Net Split $ amount. If the Fixed Net Split $ field was populated for a vendor on the Fee Splits form, you’ll see how much of that amount is remaining to be paid, and you can decide how much of it to apply with this payment.

Click on the calculator icon if you want to see the details for a vendor’s Split Plan (or plans) and the Net Split amount the system will calculate if there aren’t any Fixed Net Splits for this payment and vendor.

We will cover Net Deductions in a separate tutorial on setting up and applying Net Adjustments.

Once you have finished entering and confirming the details for this Payment, click on the Apply Payment button at the top.

The system will perform any necessary calculations, distribute and store the gross and net split amounts among the recipients, and bring up a Fee Application report.

The first page of the Fee Application report includes all of the details for this payment, including gross and net amounts for each recipient as well as the Net To Firm amount. This page is for accounting and/or admin staff.

The following pages are designed to be sent to each recipient, with the full details for their own gross and net, but without any sensitive information they aren’t entitled to.

You can download this report in different formats and print or email it from there.

Click here to go to the next tutorial.

Help Center : How to create a new Closed Deal: Part 12 - Payments

Instructions

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