Launching Market Center: Closing Transactions

Royalty Anniversary DA Lists and Royalty Base Updates

Associate Royalty is tracked across Market Centers in CommandMC, however this does not reflect until the first Month End Close has been completed. Until then, it's tracked manually between the Market Centers, best using a shared google sheet template. For more information on how to update an associate's Royalty Base and track Royalty between multiple Market Centers, please see: Tracking Caps Across Multiple Market Centers. The Associate's Royalty History can be found by Viewing an Agent's Royalty and Company Dollar History Reports. 

The host Market Center will update the tracking spreadsheet as required and provide a list of all pending transactions and a Company Dollar history report to the incubating Market Center at the beginning of the launch process, and after each Month End Close until all incubating transactions have been closed. Once the Company Dollar History report has been received, the launching (incubating) Market Center will update the Associate’s Company Dollar Cap in the Associate profile in the Commissions tab. This will need to be updated as the Associate(s) close(s) additional transactions as well.

IT'S ALSO IMPORTANT TO NOTE THAT BECAUSE LAUNCHING MARKET CENTERS DO NOT CLOSE OUT TRANSACTIONS UNTIL THEIR FIRST MONTH END CLOSE MONTH, THE COMPANY DOLLAR AND ROYALTY BASE ON ANY REPORTS IN COMMAND WILL NOT SHOW COMPANY DOLLAR OR ROYALTY PAID UNTIL THEIR FIRST MONTH END CLOSE MONTH, WHEN THEY MOVE THE TRANSACTIONS TO CLOSED STATUS.

It is vital that both the host and launching Market Centers track the Company Dollar and Royalty paid in by the Associate on a shared tracking spreadsheet so that they do not overpay/underpay Company Dollar and/or Royalty between the two Market Centers. 

Pending Closings (for Launching Market Centers with a Host Market Center ONLY)

Pending closings written during the incubation period at the host Market Center will usually close with the host Market Center, or as otherwise agreed to between the Market Center ownership group(s). Once the transaction is closed, please see: Incubating & Host Market Center Launch Procedures.

Closing Transactions

The launching Market Center must not post any transactions as closed until the Market Center is in its first month end close month. All transactions created before the month of their first month end close should be kept in approved status. Only when the month begins of the first month end close, can all transactions be closed, and deposits be imported into AccountEdge. 

NOTE: As transactions are created and saved prior to the month end close month, the Company Dollar and Royalty paid on each transaction should be recorded and added to the tracking spreadsheet (see The One Royalty Policy, Dual Affiliations, and the Duplicate Associates Report for both the host (if applicable) and launching (incubating) Market Center to reference while creating transactions.

It is possible for an agent to cap on Company Dollar and/or Royalty before month end close. Both MCAs should track this and pay agents accordingly in AccountEdge so that they do not overpay or underpay on Company Dollar or Royalty. Using a shared Google sheet can be helpful when tracking between the two Market Centers. 

To maintain an accurate bank balance, follow these steps to record bank deposits. Ensure transactions are recorded in the order they were processed. For accurate bank reconciliation, include all checks being deposited together in a single transaction.

Depositing Commission Checks

Go to Banking > Receive Money and record all checks under the sub-account 2-4000 Unidentified Income.

Writing a Commission Check

The MCA will process the disbursement as usual and issue the commission check to the agent (Banking > Spend Money) using Clearing Commission as the sub-account. The transaction date should match the closing date.

Month-End Balancing

Neither Clearing Commission nor Unidentified Income will have a $0 balance until the month-end close. Both depositing and writing commission checks must be completed each month while the launching Market Center is processing closings and generating expenses. Entries in AccountEdge should be dated on the day they are entered.

Using the Unidentified Income account ensures an accurate bank balance and prevents duplicate deposit entries when importing deposits from CommandMC.

First Month-End Close

At the start of the month, the launching Market Center will process and close transactions and complete deposits in CommandMC, and then import them into AccountEdge.

When closing out transactions from prior periods, ensure they are closed in the order they were paid. This maintains the correct sequence for Company Dollar and Royalty entries. Failure to close transactions in the correct order may result in cap balance errors.

Close all transactions processed before the first month-end close and update the close date to the first day of the month-end close month.

Batch all deposits for transactions completed in the prior period and import them into AccountEdge. It is recommended to group deposits as they were originally entered in AccountEdge. This makes it easier to identify and correct errors if needed.

Steps for Processing Deposits:

1. Prepare the deposit in CommandMC and download the text file.
2. Go to Accounts > Transaction Journal and open the deposit’s journal entry.
3. Update the cash account in the journal entry to Unidentified Income.
4. Verify that Clearing Commission and Unidentified Income have a $0 balance year-to-date by searching for:
   • 5-0060 Clearing Commission
   • 2-4000 Unidentified Income