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Agent Commission Plan
Expansion and Changes
Significant extensions to commission plan calculations
are offered by version 14.3 These capabilities extend BOS’s ability to now
automate many plan types for companies using previous versions of REAL/Easy
Windows BOS as well as REAL/Easy’s DOS system.
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Automatic rolling full months, quarters, and years
now available. Prior to this update, BOS was able to calculate levels
based on rolling full “periods”. This also means you can setup plans
only once and they will keep working month after month with no
additional maintenance.
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Use of any Prior Period ranges available including
pending (offer accepted) – a popular method of “locking-in” the
commission split.
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Choice of “status=closed” for level achieved. Many
customers have requested this option to make it easy to control,
determine, and report on which sales contribute to the agent’s achieved
levels.
Choice of “Use
Pending” date to determine the closed date range of transactions to sum for
level determination, is a powerful addition to REAL/Easy BOS’s commission
plan calculator. Many companies utilize this plan type to enable the
“locking-in” of the split rate which both rewards the agent based on when
the offer is accepted and improves the agent and company estimates of future
earnings and company dollar.
To help automate
agent commission calculations the BOS agent commission plans setup has been
enhanced. For example, companies who have these plan types are now able to
set them up in BOS:
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Companies who have rolling average plans
that go back any number of full months, quarters, and years can now automate
these calculations. Examples of common rolling average plans are:
o
Rolling 12
Months: Closing is 6/25/2005 – sum agent commission from June 2004 through
May 2005.
o
Rolling 4
Quarters: Closing is 6/25/2005 – sum agent commission from April 2004
through March 2005. A setup for this type of plan is shown below:
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Companies who “lock in” the split
percentage by summing closed production based on the Pending date. This is a
popular plan type that was not previously available in BOS. Companies use
this type of plan because it rewards the agent for accepted offer activity
and both the agent and company know immediately what the splits will be when
the sale closes. Examples are:
Key setups:
o
Plan Type
is “Rolling Total Back a Full 4 Quarters”
o
Split %
MoveUP can be anything but best to set to “Use The Current Level” In
this example, the Agents Earnings (Share) are entered for the levels.
o
The “Closed
Date Select-Use” is set to “Closed+Pending Date”. This means that the
previous 4 quarters closed sales of agent earnings are to be summed based on
each transaction’s Pending (AO – Accepted Offer) date.
Changes and
Enhancements:
The area of “Plan
Type” now has three types:
1.
Incremental by Period - this type of
plan will move up as defined by the plan split levels as the agent
closes sales. The period that is summed is defined in the Agent record’s
current plan start and end dates. Below is an example of an agent who is
on an incremental plan for the year 2005 (these settings are from the
agent’s record) :
2.Rolling
Total By Prior Period -
this
type of plan will use any previous period defined in the agent’s record
for summing the split amount. This is a change in version 14.3 for this
plan type. Below is an example of an agent setup on this plan type:
The Prior
Period Start and End date settings above, from an agent record, mean
that transactions with closed dates from 2/8/2004 through 2/7/2005 are
now being summed for current closings. With this type of plan, often
used for agent anniversary non-incremental, it is important to keep the
prior period start and end date settings up to date.
3.
Rolling Total Back a Full..... Number of Days,
Months, Years or Quarters -
this
type of plan will use previously closed sales to sum the split level
amount such as agent’s earnings. Unlike the Incremental and Rolling by
Prior Period plan types, this type does not use any of the date settings
in the agent’s record. Only the current transaction’s date and the
rolling total definitions are used to calculate the agent split.
Change: when
using the “Day(s)” option for the
rolling total, the program will now sum back a certain number of days of
close dates based on the current transaction’s close, pending, written,
or firm date as determined by the plan’s “Closed Date Select-Use”
setting. This is different from the previous version of REAL/Easy where
the current date was always used no matter what dates were in the
transaction.
Change: when
using the “Month(s)” option for the
rolling total, the program will now sum back a certain number of full
months of close dates based on the current transaction’s close, pending,
written, or firm date as determined by the plan’s “Closed Date
Select-Use” setting. The sum will not include the current month.
Examples:
o
Closed
Date Select-Use is set to “Closed+Close Date” and the close date is
6/17/2004, then closed sales with close dates from 6/1/2004 through
5/31/2005 will be summed.
o
Closed
Date Select-Use is set to APPost+Written date and the written date is
2/18/2005, then closed sales with close dates from 2/1/2004 through
1/31/2005 will be summed.
(This is
different from the previous version of REAL/Easy where the current date
was always used no matter what dates were in the transaction and the
beginning date was the same as current less the number of months.)
Change: when
using the “Year(s) option for the rolling total, the program will now
sum back a certain number of full calendar years of close dates based on
the current transaction’s close, pending, written, or firm date as
determined by the plan’s “Closed Date Select-Use” setting. The sum will
not include the current calendar year. In effect, this plan type locks
in one split level percentage for an entire year.
New:
Rolling “Quarter(s)”. This is a new option for the rolling total. To
calculate the split level sum, this option will total back the number of
specified full calendar quarters of close dates based on the current
transaction’s close, pending, written, or firm date as determined by the
plan’s “Closed Date Select-Use”
setting. The
sum will not include the current calendar quarter. In effect, this plan
type locks in one split level percentage for an entire quarter.
Examples of
rolling 4 quarters:
o
Closed
Date Select-Use is set to “Closed+Close Date” and the close date is
6/17/2005, then closed sales with close dates from 4/1/2004 through
3/31/2005 will be summed.
o
Closed
Date Select-Use is set to APPost+Written date and the written date is
2/18/2005, then closed sales with close dates from 1/1/2004 through
12/31/2004 will be summed.
The area
Incremental Split MoveUp setting remains the same:
Note that this
setting only applies to the Incremental plan types where the current
sale’s production can be moving an agent to another split level. For
both rolling plan types, the current sale’s production is not counted in
the production total.
The summed
figure to use to determine the split level percent is defined by the “Above
Split Level Amounts Are…” setup.
The choices of
GCI, AGCI, etc. are the same as previous versions of BOS – they have
just been re-labeled. When setting up each plan’s split levels the
amounts entered in the “To This Amount” column for each split level must
correspond to the choice of Amount type – GCI, AGCI, NAGCI, Agent’s
share, or Agent’s company dollar.
The area that
defines which closed sales the plan is to sum is the “Closed
Date Select-Use:” shown below.
Eight options
are available here. In all cases, either “posted” or “closed status”
sales for a determined closed date range are summed to determine the
level attained by the agent. One of the options above is selected to
define which transactions are to contribute.
The first four choices are to select only sales that have been “APPosted”.
This action is taken with a sale with the “Post AR/AP button is clicked
on a transaction within the “Close Transaction” command. Each of the
four “APPost+” options define which of the transaction’s dates, i.e. the
Close, Pending, Written (Offer), or Firm, are to be used to determine
the close date range to sum.
The second four
choices are to select only sales that have a closed status. No action is
necessary in “Close Transaction” other than making sure a sale is closed
to be counted. Each of the four “Closed+” options define which of the
transaction’s dates, i.e. the Close, Pending, Written (Offer), or Firm,
are to be used to determine the close date range to sum.
Examples:
o
Closed
Date Select-Use is set to “Closed+Close Date” and the
transaction’s close date is 6/17/2005. First, sales that are closed only
will be summed. Then, the close date of 6/17/2005 will be used to
determine the close date range to be summed based on the Plan Type
defined.
o
Closed
Date Select-Use is set to “APPost+Written” date and the
transaction’s written date is 2/18/2005. First, only sales that have
been AP posted within “Close Transaction” will be counted for the sum.
Then, the written date of 2/18/2005 will be used to determine the close
date range to be summed based on the Plan Type defined.
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