Transfer Sale Deposit Less Commission - Release Early Deposit

This article outlines the updated process for transferring deposit less commission funds to a settlement agent prior to the settlement of a property sale using the Sales Trust module in RexCirrus8. 

Overview

In a property sale, the deposit less commission (DLC) refers to the portion of the buyer’s deposit that remains after deducting the sales commission owed to the agency. If the deposit exceeds the commission, the settlement agent will typically request the transfer of the remaining funds to their trust account before settlement.

Use this process when:

• A buyer has paid a deposit into the Sales Trust.
• The agency is entitled to a commission from that deposit.
• The remaining balance (deposit less commission) needs to be transferred to the settlement agent.

Steps to Transfer Deposit Less Commission

Step 1: Set Up the Settlement Agent as a Supplier

• Navigate to Companies > Company Summary.
• Create a new company for the settlement agent.
• Ensure the Company Type is set as Supplier.

Step 2: Confirm Deposit and Commission Amounts

• Go to the Sales Trust module.
• Locate the relevant ledger and sub-ledger for the sale property by using the drop-down selections.
• Confirm:
  • The deposit amount held.
  • The commission amount to be charged.
• Calculate the deposit less commission amount:

                       Deposit Less Commission = Deposit Amount − Commission Amount

Step 3: Raise an Accounts Payable Invoice

• Navigate to Accounts Payable > Invoices & Credits.
• Create a new invoice:
  • Supplier: Select the settlement agent as the supplier
  • Enter an Invoice number or reference for the sale
  • Select today's date as the Invoice Date
  • Select Invoice as the Transaction Type
  • Property: Select the Ledger where the sale deposit is held
  • Select the relevant Sub-Ledger
  • Select a relevant account code e.g. Sale Deposit
  • Enter the Description e.g. Deposit Less Commission
  • Tax Rate: Select GST FREE.
  • Gross Amount: Enter the deposit less commission amount.
  • Click Process
  • Attach any supporting documentation against the invoice entry.
  • Click Complete.

Step 4: Create and Process a Payment Run

• Go to Accounts Payable > Create Payments.
• Select Payment Run as the Payment Type.
• Enter the Payment Run Date as today's date.
• Select the Property Sale Ledger to be included in the payment run and click Update Properties.
• Select the invoice created in Step 3. to pay under the Outstanding Payments section.
• Click Process
• Process the payment run to transfer the funds to the settlement agent’s trust account by following the next steps:
  • Generate EFT or BPAY Batch Payment File 
  • View Cheques 
  • View and Email Remittance Advice 

Important Notes

• Always double-check the commission calculation to ensure accuracy.
• Ensure the bank details for the settlement agent are verified to avoid payment errors.