A commission basis is a named amount other than the sale price to calculate commission on, so a deal that pays on the base price, the net of a concession, or a lease can be entered without bending the sale price to fit.
Introduction
Most deals pay commission on the sale price, and the Commission Module assumes that. Some don't. A new-construction sale pays on the base price and not the upgrades. A seller concession comes off before the split is figured. A lease pays a commission with no sale price behind it at all. The instinct is to type a made-up sale price so the math comes out right, and that spoils every report the sale price feeds.
A commission basis is the way out. You name it once in your account's settings, and from then on it's a choice on the Manage Commissions page next to the sale price. Pick it, enter the amount the commission is really paid on, and the split calculates from that. The sale price and sales volume stay what they are, so the deal counts the way it should everywhere else.
How It Works
Set the bases up once. Use one on a deal whenever the commission isn't paid on the sale price.
A Basis Is a Name, Not a Number
In settings you only create the name — Base Price, Net of Concession, Lease Commission. The amount is entered deal by deal, on the transaction, at the moment you enter its commissions.
It Replaces the Sale Price for the Math Only
When you choose a basis on a transaction, the commission calculates from the amount you enter for it. The transaction's sale price and sales volume are untouched, so production reports, averages, and the CDA's sale information still read from the real figures.
Where It Shows
The basis you picked and its amount sit in the Sale Info section of the commission entry, alongside the sale price, and carry through to the CDA for that deal.
When Offices Reach for One
- New construction, where the commission is paid on the base price rather than the price with upgrades.
- A buyer or seller concession that comes off before the commission is figured.
- A deal where the contract simply pays commission on a different amount than the recorded sale price.
- Leases and property management, where a commission is earned with no sale behind it.
Add a Commission Basis
Name a basis once so it's available on every transaction's commission entry.
Who Can Do This: Master admins.
To add a commission basis:
- Click the [Gear] in the upper-right corner, then [Admin / Settings].
- Under Financials in the left menu, click [Commission Basis].
- Type the name of the basis.
- Click [Add Commission Basis].
The basis now appears in the Commission Basis list on every transaction's Manage Commissions page.
Use a Commission Basis on a Transaction
Calculate a deal's commission from an amount other than its sale price.
Who Can Do This: Master admins, and admins with the "Enter financial data" permission for the transaction's Location.
To use a commission basis on a transaction:
- Open the transaction, then click [Manage Commissions] from the left menu.
- In the Sale Info step, click the Commission Basis list and choose the basis.
- Enter the amount the commission should be calculated on.
- Click [Calculate & Continue] and finish entering commissions as usual.
The split, fees, and CDA now work from the basis amount. The sale price you entered on the transaction stays as it was.
Frequently Asked Questions
Does using a commission basis change the sale price on the transaction?
No. The basis only changes the amount the commission is calculated from. The sale price and sales volume you recorded on the transaction stay as they are, and reports keep reading them.
The commission is paid on a different amount than the sale price. What do I enter?
Keep the real sale price on the transaction and use a commission basis for the amount the commission is paid on. Add a basis that describes the situation, choose it in the Sale Info step of Manage Commissions, and enter the amount there.
How do I keep a lease from counting as a sale?
Use a lease commission basis and enter the commission against it. Enter $0 for the sale price and sales volume on the rental's commission, and the commission still counts while no phantom sale pulls your averages down.
Does the commission basis show on the CDA?
Yes. The basis you chose and its amount carry through to the CDA's sale information alongside the sale price, so the closing party can see what the commission was figured on.
Can an agent choose a commission basis?
Only someone who can enter commissions on the transaction. That's master admins and admins with the "Enter financial data" permission for the transaction's Location. Agents see the result, not the entry.
Can I rename or remove a basis?
Manage the list from the same Commission Basis page in Admin / Settings. A basis already used on a transaction stays on that transaction's commission entry, so retire names you no longer want new deals to pick rather than reusing them for something else.
