Create an Adjustment Transaction (Reverse) – Leadership Answers

Please review the Transaction Adjustment Guide to understand the process for correcting transaction errors through Adjustments.

Adjustment Transactions are used to make corrections to Transactions that were closed in a prior period. An Adjustment Transaction is like doing a journal entry where when you take the initial Transaction and the Adjustment Transaction and add the numbers together, you should end up with the final distribution of commissions.

If the Transaction is in the current month, undo the original Transaction, make the corrections, re-close the Transaction, create the deposit and upload to AccountEdge. Remember to delete the original deposit from AccountEdge.

Reasons a Reverse Adjustment Transaction would be used:

The wrong type of transaction was entered
A concession needs to be added or who paid the concession needs to be changed
A deduction needs to be added, removed or changed
A closed transaction needs to be reversed, canceled or terminated
An outside referral needs to be increased, removed or decreased - use a Reverse Adjustment Transaction

Reasons a Reverse Adjustment Transaction would NOT be used:

Commission split is incorrectly distributed among agents on a transaction and needs to be corrected - use a Commission Distribution Adjustment
Company Dollar and/or Royalty need to be refunded - use a Commission Distribution Adjustment
An outside referral needs to be added to a closed transaction - use an Outside Referral Adjustment

Here's a summary of the steps to complete an Reverse Adjustment Transaction. Continue to the bottom of the article for more detailed instructions.

1. Log in to https://agent.kw.com with your KW login credentials.

2. At the top of the page, click CommandMC.

3. Click to access the Transactions Applet, , on the left side of the page.

4. Locate the original closed Transaction from the prior period that needs the original commission distribution adjusted, and click on the Transaction ID to open it.

5. At the bottom right of the page, click Create an Adjustment.

6. Select Reverse, then click Start Adjustment.

7. A confirmation will appear, click Yes, Reverse.

8. This will create the Adjustment Transaction. Click the Adjustment ID.

9. This will open the Reverse Adjustment transaction and show a reversal of the transaction details.

If royalty was paid on the original transaction and is not showing as being reversed on the Reverse Adjustment, please reach out to MCA Support for assistance to determine if a royalty adjustment is needed.

Any KWRI Philanthropy deductions will NOT reverse on a Reverse Adjustment.

10. Click the Financials tab. In the Adjustments of the Commission Reconciliation, enter a description and enter the out of balance amount as a negative. This will balance the transaction. Click Close Transaction. Click Yes, Close.

11. A confirmation will appear, click Yes, Close.

12. Create a new Transaction with the corrections needed as the original transaction should have been. In the Financials tab, in the Commission Reconciliation section, ensure the original check is not posted under Check Received, but rather entered under Adjustment. Click Close Transaction.

Posting the correcting transaction to check received rather than adjustment will cause a duplicate entry to the Cash Account in AccountEdge and cause other out of balance issues. This check was already posted to the Cash Account in the original transaction.

13. Create the Deposit and Import into AccountEdge.

A best practice is to keep the Reverse Adjustment and the correcting transaction on the same deposit.

14. Confirm Clearing Commission account is zero.

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