Module 5 — Manage Deductions and Expenses

Part of Broker / Staff Basic Training.

Before commission is paid, define what the brokerage withholds per deal (Deduction Manager) and what agents owe on a schedule (Expense Manager). Deduction Tracker and Expense Tracker show what was applied or recovered — they are read-mostly reconciliation screens, not where you create rules.

Contents

• Understand deductions vs expenses
• Create a deduction rule
• Configure tiered deductions
• Use Commission Plans when enabled
• Verify deductions after payout
• Create an expense or credit
• Deal-level deduction adjustments

Understand deductions vs expenses

	Deductions	Expenses
Defined in	Financial → Deduction Manager	Financial → Expense Manager
Timing	Deal-based — one application per qualifying deal	Time-based — one-time, monthly, quarterly, or annual
Review in	Deduction Tracker	Expense Tracker
Examples	Desk fees, franchise fees, per-deal charges, commission-plan splits	Sign purchases, monthly desk fees, marketing charges
Recovery	Withheld when commission is calculated or paid	Commission payment, manual recovery in Expense Tracker, credit/debit card auto-recovery, or other configured methods

Create a deduction rule

1. Open Financial → Deduction Manager.
2. Click + Add Deduction or search existing rules with Date From, Date To, Realtor, Office, and other filters.
3. On the add form:
   • Select Realtor (one or more — each gets an individual rule)
   • Choose Deduction name and Deduction Type — flat amount, percentage of commission, or percentage of full commission
   • Set Deduction Deal Type scope when required
   • Enter Amount as dollars or percent
   • Set Date Starts and optional Date Ends
4. Save the rule.
5. New deals and future commission runs pick up active rules automatically.

After creation, only description, end date, and repeating settings can be edited. To change amount, type, or realtor — inactivate and create a new rule.

Configure tiered deductions

1. On the add/edit form, check Tiered Deduction.
2. Choose Deduction Tier Type — Commissions Earned or Deals Completed.
3. Click + Add Tier and define thresholds and amounts for each band.
4. Set Date Ends or enable Repeating for tiered rules.
5. Use the Tiered button in search results to review tiers after save.

Use Commission Plans when enabled

When Commission Plans are enabled:

1. Open the Commission Plans tab on Deduction Manager — review plan status, tier basis, and assigned agents.
2. Click Edit on a plan — set Tier Basis (commissions earned or deals completed) and define Tiers as volume bands.
3. Within each tier, add Components (split %, deal fee, tiered deal fee, greater-of) and Allocations per component (payee type and % — must total 100% with at least one Brokerage allocation).
4. Click Assign on an active plan — choose Period Type (calendar year, custom year, anniversary, or contract date) and select agents.
5. Review plan math on a sample deal in Commissions and Fees on Payments before paying live commissions.

See the for full detail.

Verify deductions after payout

1. Open Financial → Deduction Tracker.
2. Filter by date range, realtor, deduction name, and office.
3. Confirm expected lines appear on commission payments you just processed.
4. Export to Excel when reconciling with accounting.

Create an expense or credit

1. Open Financial → Expense Manager.
2. Click + Add Expense (charge) or + Add Credit (reduces what an agent owes).
3. Select one or more realtors.
4. Choose Expense category, Expense Type (one time, monthly, quarterly, annually), dates, and Recurring At when the charge repeats.
5. Enter description, amount, and tax fields, then save.

Outstanding balances appear in Expense Tracker until recovered. Only description and end date can be edited later.

Bulk Upload CSV is available for large imports — see .

Deal-level deduction adjustments

Sometimes a one-off change is needed on a single deal without changing global rules:

1. Open Payments for the deal and expand Commissions and Fees.
2. Add Deduction — click Add Deduction on the realtor block for a custom quick deduction (name, flat amount or percentage, optional third-party payee).
3. Override — click an existing line's Amount field and enter a different value for this payment only. An Override badge appears; use the reset control to restore the calculated amount.

Quick deductions and overrides apply to this deal only.