TotalBrokerage

When synchronizing a Transaction to Quickbooks, the following items will be created in your Quickbooks Online account.  Please note that Essentials, Plus, or Advanced is required

(Key: Green denotes a Quickbooks item and Blue denotes a TotalBrokerage item.) 

1. An Invoice will be created for your brokerage’s commission income. 

    a. The Invoice's memo will contain a reference to the transaction. 

    b. By default, the invoice will contain a line item for base commission. This line item pertains to a Service Item specified in your Quickbooks settings. 

    c. If bonus commission was specified, the Invoice will also contain a line item for bonus commission. 

    d. If “Include Credits Affecting Gross Income” was specified when synchronizing, a line item will appear on the Invoice for each credit your brokerage received to gross income. 

    e. If “Include Deductions Affecting Gross Income” was specified when synchronizing, a line item will appear on the Invoice for each deduction from your brokerage’s gross income.

2. A Bill will be created for each of the agents participating in the transaction. 

    a. The Bill's memo will contain a reference to the transaction. 

    b. The agent will be listed as a Vendor on the Bill. 

    c. By default, it will contain a line item for the agent’s base commission. 

    d. The line items of your Bill will include a “Customer” column populated with the same customer used in invoices for the transaction. This creates tighter coupling between the invoices and expenses created for transactions when generating reports in Quickbooks.

    e. If bonus commission was specified, the Invoice will also contain a line item for the agent’s bonus commission. 

    f. A line item will appear on the Bill for each post-split credit and deduction that apply directly to the agent's 

        net income. 

    g. A Service Item is created for each credit/deduction. This Service Item will be assigned to the created line 

        items. 

        NOTE: Automatically created Products/Services will be used across Bills and Invoices - meaning they can apply  both to expenses and income. The Default Expense Account and the Default Income Account specified in  your Quickbooks Settings will be used to create these Service Item, if they do not exist. A Service Item with a name matching the description of the line item will be created, if one is not found. The line item descriptions are specified in the Setup User Fields page under Commission Line Item. 

    h. The description of each line item will display the name/company of the Vendor that it corresponds to. 

3. The system will examine all the credits & deductions in your transaction. This includes credits & deductions affecting gross income, agent gross income, agent net income, and broker net income. These credits & deductions will be grouped by the Vendor that participated in the financials of the transaction. 

    a. If a Vendor contributed a net zero or net positive amount to the transaction, it will create an Invoice. This is to 

        denote that the Vendor owes money to the brokerage. 

            i. The Invoice’s memo will contain a reference to the transaction. 

            ii. The Vendor will be listed as a Customer on the Invoice. 

            iii. The Invoice will contain a line item for each credit and deduction the vendor provided to the transaction. 

    b. If a Vendor contributed a net negative amount to the transaction, it will create a Bill. This is to denote that 

        the brokerage owes money to the Vendor. 

            i. The Bill's memo will contain a reference to the transaction. 

            ii. The Vendor will be listed as a Vendor on the Bill. 

            iii. The Bill will contain a line item for each credit and deduction the vendor provided to the transaction.

This is an example of a Quickbooks desktop setup.

Setup Expenses

Commissions Appear As: This is the Quickbooks Product/Service that the agents commissions for the transaction will appear as.

Date for Expenses: This defines the Payment Date on the Check that will be assigned to expenses created by TotalBrokerage. The following options are available for this option:

• Quickbooks Assigned - Quickbooks will automatically assign a Payment Date at the time the expense is created.
• Transaction Close Date - TotalBrokerage will assign the transaction's closing/lease execution date as the Payment Date for the expense.

Default Expense Account: Each line item type in a transaction's commission (e.g. Referral Fee, Transaction Fee, Errors & Omissions) correspond to a Product/Service in Quickbooks which TotalBrokerage will automatically create. The Default Expense Account defines the default account these Services will be charged to, and corresponds to any Account listed in your Chart of Accounts.

Add Transaction Property Address To Memo: If you would like the property address to be added to the memo of checks.

Use Line Item for Internal Transfers: If you would like specific line items from the commission tab to not appear in quickbooks as it is being used to transfer money between the Brokerage and an Agent.

Setup Invoices

Customer for Brokerage Invoices:  The commission income will come from this Quickbooks customer that is created or retrieved when syncing the transaction. 

• Transaction name - Creates or retrieves an existing Quickbooks customer with the transactions name.
• Property address - Creates or retrieves an existing Quickbooks customer with the property address.
• Single Customer - Retrieves an existing Quickbooks customer which will be used for all transaction. 

Commissions Appear As: This is the Quickbooks Product/Service that your incoming commission for the transaction will appear as.

Date for Invoices: The created date for the Invoice.

• Quickbooks Assigned - Quickbooks will automatically assign a Date for Invoice at the time the invoice is created.
• Transaction Close Date - TotalBrokerage will assign the transaction's closing/lease execution date as the Date for Invoice for the invoice.

Due Date for Invoices: This is the due date for the invoice.

• Quickbooks Assigned - Quickbooks will automatically assign a Due Date for Invoice at the time the invoice is created.
• Transaction Close Date - TotalBrokerage will assign the transaction's closing/lease execution date as the Due Date for Invoice for the invoice.

Default Income Account: This is the Income account that will be assigned to all invoices created by TotalBrokerage in Quickbooks. This corresponds to any Account listed in your Charts of Accounts.

Add Transaction Property Address To Memo: If you would like the property address to be added to the memo of invoices.

Broker Commission Paid Out To: This is TotalBrokerage vendor that broker commission is payed out to. We will create this Quickbooks entity for you. This is useful in situations where net income must be sent to a separate location from your QuickBooks company, such as when transferring funds from an escrow account to an operating account.