MARKET CENTER ADMINISTRATOR GUIDE. Transmittal. Closing the Month (U.S.) March 28, 2016, v. 5.0

Transcription

1 MARKET CENTER ADMINISTRATOR GUIDE Transmittal Closing the Month (U.S.) March 28, 2016, v. 5.0

2 Table of Contents Transmittal Checklist... 3 Overview... 5 Task 1: Verify System and Data Files... 6 Task 2: Print and Review EOM/Projected Closings... 9 Task 3: Complete WinMORE Entries Task 4: Print the Anniversary DA List Task 5: Print EOM Reports Task 6: Print and Review Associate List Task 7: Print YTD Closed Production Task 8: Verify Receivables Task 9: Verify Payables Task 10: Review Clearing Commission Task 11: Verify Debits and Credits Match Task 12: Review Undeposited Funds Account Task 13: Account for E&O Task 14: Verify KW Debt, Depreciation, and/or Amortization Task 15: Verify Payroll Tax Payable Task 16: Verify Income Tax Has Been Booked Task 17: Send Monthly Data to KWFS, Save Your KWFS, and Calculate Preliminary Set Costs Task 18: Print Preliminary Profit Share Calculation Task 19: Create Invoice to KWRI Task 20: Review Financial Reports Task 21: Send Monthly Data to KWFS, Save Your KWFS, and Calculate Final Set Costs Task 22: Print Final Monthly Profit Share Calculation and Add Royalty and Profit Share to the KWRI Invoice Task 23: Record Direct Withdrawal to KWRI Task 24: Check Key Numbers Task 25: Lock the Month in AccountEdge Task 26: Send Monthly Data to KWFS and Save Your KWFS Keller Williams Realty, Inc. 1

3 Task 27: EOM Backup Task 28: Prepare the Transmittal Task 29: Upload Transmittal Files to KWRI Update Log Keller Williams Realty, Inc. 2

4 Transmittal Checklist # TASK/STEP APPLICATION DONE 1. Verify System and Data Files WinMORE and AccountEdge 2. Print and Review EOM/Projected Closings (day or two before transmittal) WinMORE 3. Complete WinMORE Entries WinMORE 4. Print the Anniversary DA List WinMORE 5. Print EOM Reports WinMORE 6. Print and Review Associate List WinMORE 7. Print YTD Closed Production WinMORE 8. Verify Receivables AccountEdge 9. Verify Payables AccountEdge 10. Review Clearing Commission AccountEdge 11. Verify Debits and Credits Match AccountEdge 12. Review Undeposited Funds Account AccountEdge 13. Account for E&O AccountEdge Verify KW Debt, Depreciation, and/or Amortization Verify Payroll Tax Payable (if payroll is inhouse) Verify Income Tax Has Been Booked (if profitable) AccountEdge AccountEdge AccountEdge 2016 Keller Williams Realty, Inc. 3

5 # TASK/STEP APPLICATION DONE 17. Send Monthly Data to KWFS, Save Your KWFS, and Calculate Preliminary Set Costs AccountEdge, KWFS, and WinMORE 18. Print Preliminary Profit Share Calculation WinMORE 19. Create Invoice to KWRI 20. Review Financial Reports WinMORE and AccountEdge KWFS and AccountEdge Send Monthly Data to KWFS, Save Your KWFS, and Calculate Final Set Costs Print Final Monthly Profit Share Calculation and Add Royalty and Profit Share to the KWRI Invoice AccountEdge, KWFS, and WinMORE WinMORE and AccountEdge 23. Record Direct Withdrawal to KWRI AccountEdge 24. Check Key Numbers AccountEdge, KWFS, and WinMORE 25. Lock the Month in AccountEdge AccountEdge 26. Send Monthly Data to KWFS and Save Your KWFS AccountEdge and KWFS 27. EOM Backup External Backup 28. Prepare the Transmittal WinMORE 29. Upload Transmittal Files to KWRI WinMORE 2016 Keller Williams Realty, Inc. 4

6 Overview Transmittal is not an isolated event. It begins in yearly goal planning with Cap Management, it is supported by weekly soft closes and the MCA s analysis and contributions in the four conversations, and it is facilitated by the MCA s active involvement in completing the Daily Company Dollar tool. If you need help throughout the transmittal process, contact kwmcangel@kw.com, unless otherwise directed in a particular step. Note: All images are provided to guide you. Your screens may look slightly different due to updates, upgrades, etc Keller Williams Realty, Inc. 5

7 Task 1: Verify System and Data Files In this section, you will verify that your WinMORE and AccountEdge data files are intact. This task is included in your Daily Checklist; however, do it again at the beginning of the transmittal process. It is critical to ensuring you are able to transmit. Step 1 In WinMORE, click Setup and click Verify System and Data Files. Step 2 A message dialogue box will appear informing you of the folders to be tested. Click OK. Wait Keller Williams Realty, Inc. 6

8 Step 3 A message dialogue box should appear informing you that The WinMORE System and Data files are OK! Click OK. If you see any other message, contact kwmcangel@kw.com immediately. Step 4 In AccountEdge, click File and select Verify Company File Keller Williams Realty, Inc. 7

9 Step 5 Review the note and click OK. Step 6 A message dialogue box should appear informing you that No errors were found in your company file. Click OK. If you see any other message, contact AccountEdge Technical Support at kw@acclivitysoftware.com or (800) immediately. Record your AccountEdge serial number here for your records: 2016 Keller Williams Realty, Inc. 8

10 Task 2: Print and Review EOM/Projected Closings In this task, verify that all funding checks have been received. Use the Projected Closings (RPT2) Report to verify that all transactions slated to close in the current month have closed. Note: Do this on the first day of the month. You can check anything that should have closed on the last day of the month and it will give you a day to collect the checks and close the DAs. Step 1 In WinMORE, click Month-End and then select EOM Reports. Click Projected Closings (RPT2). Print the report with landscape orientation Keller Williams Realty, Inc. 9

11 Step 2 Verify that there are no entries with a Date Closed and in the Close Period for the month you are about to transmit. In this example, the DAs listed are scheduled to close in June, the month you are closing out and transmitting. Therefore, you will need to contact the associate, get an updated closing date, and update the DA closed date prior to transmitting Keller Williams Realty, Inc. 10

12 Task 3: Complete WinMORE Entries In this section, you will verify that your WinMORE deposits for the month agree with your Transmittal Proof Report. Step 1 Gather all closing statements and checks that you have not yet deposited for the month you are transmitting. Step 2 Process your final deposit for the month. Step 3 In WinMORE, click Month-End and select Transmittal Proof Report and print the report Keller Williams Realty, Inc. 11

13 Step 4 Add up all of the WinMORE deposit slips for the month. Make sure that the total agrees with the Total Check Amount on the Transmittal Proof Report. Note: If your Market Center deposits ONLY Check For = 1 DAs, verify that Pay to KW and Check Amount also match. WinMORE Deposits: Deposit 1: Deposit 2: Deposit 3: Deposit 4: Deposit 5: Deposit 6: Deposit 7: Total: Transmittal Proof Report: 2016 Keller Williams Realty, Inc. 12

14 Task 4: Print the Anniversary DA List The Anniversary DA List reports all posted DAs for a particular associate that have closed during that associate s current Anniversary Year. The following steps are used to track associate Company Dollar and Royalty Caps to help ensure associates don t overpay. Additionally, it helps you track cash flow for your Market Center. Step 1 In your printer s options box, click Printer Properties to review and/or change orientation and paper size settings. Ensure that Landscape Orientation and Legal-size Paper are selected. Click OK. Note: Print a copy as a PDF and save it for your records Keller Williams Realty, Inc. 13

15 Step 2 In WinMORE, click Print and select Associate Reports. Click Anniversary DA List. Select Both (Prints 2 reports) and click OK to print both reports. Step 3 Click All to select all associates Keller Williams Realty, Inc. 14

16 Step 4 For Do you want to print agent totals only? click Yes. Step 5 For Do you want a new page for each agent? click No and then print the reports Keller Williams Realty, Inc. 15

17 Step 6 Look for the following in the Company Dollar Anniversary Report: Company Dollar (CO_COMM) should never exceed the max set by your Market Center (for example, $18,000). Look for the following in the Royalty Anniversary Report: Royalty Base should never exceed the max set by KWRI for your Market Center ($50,000 or $60,000), even if an associate s GCI has exceeded this amount. Note: It may be less than this maximum total. For example, if Marge Mega s GCI is $79,900, her Royalty Base is still $50,000. If Royalty Base for an agent is greater than $50,000, contact kwmcangel@kw.com. The most likely cause for this amount to be different is if the agent has: o o Transferred to your Market Center from another Market Center and Franchise Royalty was paid by both Market Centers. A DA that closed prior to when the agent capped in the same month is recalculated. See the Note in Daily Checklist Deposits. If the associates pay 100 percent of the 6 percent Royalty, then Agent Royalty should equal 6 percent of Royalty Base. For example, if Royalty Base is $50,000, then Agent Royalty must equal $3,000. If it does not, there is a problem that must be corrected. The most likely reason is that a DA Entry- Associate Detail Screen Associate Royalty was manually edited. This can be fixed by entering another Adjustment DA to correct the under- or overpayment of Associate Royalty from the agent. It s okay to be off by pennies caused by rounding. (see the next page) 2016 Keller Williams Realty, Inc. 16

18 Agent Royalty with Tax = Royalty Base x 6 percent Note: If Agent Royalty is not 6 percent of Royalty Base, focus on the DAs closed for each associate. Multiply each associate s total Royalty Base by 6 percent to find the error and correct the DA in which Royalty Base or Associate Royalty was miscalculated. Note: You may find you are off by a few pennies. This is due to differences in rounding and is acceptable. Step 7 Obtain Team Leader approval Keller Williams Realty, Inc. 17

19 Task 5: Print EOM Reports In this section, you will verify that you have entered your Market Center s data correctly into WinMORE. During these steps, you will also print the appropriate EOM Reports. Use the EOM Reports Checklist as a guide to keep you on track as you print, verify, and obtain approval on each report. Step 1 In WinMORE, click Month-End and select EOM Reports. Then click All Required Reports Keller Williams Realty, Inc. 18

20 Step 2 In the End-of-Month Reports dialogue box, click Select All and click OK. Step 3 On the Associate Recap Report (RPT 1), make sure that your Associate Recap ties to all other current and previous month EOM reports. For each category: YTD from last month s report + Current Month = Current YTD. On the Closed Volume Report verify Company Dollar (co_comm) matches Company Dollar on your financials. Step 4 Review each report using the tables on the following pages. Step 5 Obtain Team Leader approval. Note: If changes are made to any DAs or associate files between now and transmittal, you will need to reprint all of the EOM reports Keller Williams Realty, Inc. 19

21 EOM Reports Checklist: Required Reports Report Name Description How to Use Activity Report (RPT 4) Comprehensive report of productivity and key numbers. TLs and OPs use this report to study Market Center productivity. Printed Verified Approved Associate Recap (RPT 1) Summarizes each associate s contracts, closings, listings, and transactions closed. Quick overview of each associate s current month and year-to-date activity. Printed Verified Approved Written Sales Volume by Associate Details contracts written by associate. Review detail of current month contracts. Printed Verified Approved Closed Sales Volume by Associate Details contracts closed by associate. Review of current month closings. Also used to verify against MLS reports. Use to verify that Company Dollar, Royalty, and E&O (if applicable) match financial statement. Printed Verified Approved Written Sales Volume by Type and Class Details contracts written by type and class (i.e., Sale/Property or Listing/Lease). Review detail of current month contracts. Printed Verified Approved Closed Sales Volume by Type and Class Details contracts closed by type and class (i.e., Sale/Property or Listing/Lease). Review of current month closings. Also used to verify against MLS reports. Printed Verified Approved Written Sales Volume by Associate, Type, and Class Details contracts written by associate by type and class (i.e., Sale/Property or Listing/Lease). Review detail of current month contracts. Printed Verified Approved Closed Sales Volume by Associate, Type, and Class Details contracts closed by associate by type and class (i.e., Sale/Property or Listing Lease). Review of current month closings. Also used to verify against MLS reports. Printed Verified Approved Cancelled Sales Volume by Associate List of contracts that have fallen off. Review of current month transactions. Also used to verify against MLS reports. Printed Verified Approved Listing Contracts Taken Details listings taken by associate this month. The report includes units, price, expiration date, and MLS #. Keep track of listings entered in WinMORE. Also used to verify against MLS reports. Printed Verified Approved 2016 Keller Williams Realty, Inc. 20

22 EOM Reports Checklist: Required Reports Report Name Description How to Use Projection (Contracts Pending) Projected Closings (RPT2) Details pending contracts (DAs) by closing date. Cash-flow planning. Printed Verified Approved Royalty Exceptions Possible Franchise or Associate Royalty issues. Spot and fix problems with Franchise or Associate Royalty. Document all exceptions and have this file folder of information available for your Regional Director or KWRI review. Printed Verified Approved Strategic Alliances Activity by Vendor Lists use of affiliates. Use this report to track the use of affiliates. Printed Verified Approved Strategic Alliances Activity by Associate and Vendor Lists use of affiliates. Use this report to track the use of affiliates. Printed Verified Approved Temporary Sponsor Report Review the Market Center roster with temporary sponsor names. Update associate records for which you have received approval. Printed Verified Approved Associate Birthdays Lists the associate birthdays for the next month. Celebrations! Printed Verified Approved Associate Anniversaries Lists the associate anniversaries for the next month. Celebration and recognition. Printed Verified Approved Errors and Omissions Insurance If your Market Center has a per-transaction policy where what you collect from the agent is paid over dollar-for-dollar to the E&O company, use this report to include with your check. Per-transaction E&O reporting. Printed Verified Approved Note: The Imported Associates Report is not used Keller Williams Realty, Inc. 21

23 Task 6: Print and Review Associate List In this task, you will print the Associate List with sponsors and review it with your Team Leader. Step 1 In WinMORE, click Print and select Reconciliation Reports. Click Associate List Keller Williams Realty, Inc. 22

24 Step 2 You will be presented with several option boxes. Enter your preferences for each option. After entering each preference, click OK. Enter the way you want to see the name on the list. o o o L for Last Name First F for First Name First R for Roster Enter the order in which you want the names to print. o o o o o L for Last Name First F for First Name First R for Roster I for ID Number B for Box Number Do you want to print the address? o o Y for Yes N for No Do you want to print the phone #? o o Y for Yes N for No Do you want to print the box #? o o Y for Yes N for No Do You Want to Print the Sponsor (Y/N)? o Make sure that you enter Y, then press OK Keller Williams Realty, Inc. 23

25 Step 3 Under Associate Status Codes to Include, select Active, Staff, and Vested Removed and click OK. Step 4 Obtain Team Leader approval Keller Williams Realty, Inc. 24

26 Task 7: Print YTD Closed Production The YTD Closed Production (also called Top Down ) Report summarizes all of your associates calendar and fiscal year activity through the end of the current month. Use this report to determine and forecast cash flow, as well as track those who are close to capping or are approaching their anniversary dates. Step 1 In WinMORE, click Print and select Associate Reports. Click YTD Closed Production. Step 2 Print to PDF for recordkeeping. Print a paper copy and give it to your Team Leader Keller Williams Realty, Inc. 25

27 Step 3 Review the report. Look for the following: o o o Associates who may reach their Company Commission Cap in the next month. 100 percent associates whose anniversary (fiscal) period expires this month. For these associates, you will need to change all affected associates splits in all pending DAs scheduled to close after you transmit. Couple team s combined caps (both Company Commission and GCI) Keller Williams Realty, Inc. 26

28 Task 8: Verify Receivables In this section, you will verify your receivables Out of Balance Amount is zero. Note: Keep in mind that the KW model is that agents Accounts Receivable should be zero at the end of the month. Our associates are expected to pay their bills on time just as the Market Center is expected to do. Step 1 In AccountEdge, click the drop-down arrow next to Reports and select Sales Keller Williams Realty, Inc. 27

29 Step 2 From the Sales tab select Reconciliation Summary under Receivables and click Customize. Step 3 Click the Finishing tab. Be sure to check Include $0.00 Balances. Click Print Keller Williams Realty, Inc. 28

30 Step 4 Confirm the Out of Balance Amount equals zero. Step 5 If the Out of Balance Amount does not equal zero, keep backdating the Reconciliation Summary until you find the day the error occurred. Print to screen a General Ledger Trial Balance Detail for the account AR-Agents for this day and focus on the entries made on this day to find the error and correct it. The General Ledger Trial Balance Detail Report is located under the Accounts tab of the Index to Reports. Possible reasons why your Out of Balance Amount would not equal zero include: You accidently coded an invoice to Accounts Receivable when invoicing an associate. You accidently created a Journal Entry coded to Accounts Receivable. If neither of these explains your issue, please send an describing the issue to kwmcangel@kw.com Keller Williams Realty, Inc. 29

31 Task 9: Verify Payables In this task, you will verify that the Payables Out of Balance Amount is zero. Step 1 In AccountEdge, click the Purchases tab of the Index to Reports and select the Reconciliation Summary under Payables. Click Print. Note: Be sure to customize report to show zero balances. See Task 8 for more information. Step 2 Confirm the Out of Balance Amount equals zero. Note: Print a PDF version and save for your records Keller Williams Realty, Inc. 30

32 Step 3 If the Out of Balance Amount does not equal zero, keep backdating the Reconciliation Summary until you find the day the error occurred. Print to screen a General Ledger Trial Balance Detail for the account Accounts Payable for this day and focus on the entries made on this day to find the error and correct it. The General Ledger Trial Balance Detail Report is located under the Accounts tab of the Index to Reports. Possible reasons why your Out of Balance Amount would not equal zero include: You billed an associate and accidently coded it to Accounts Payable. You created a vendor invoice and accidently coded it to Accounts Payable. If neither of these explains your issue, please send an describing the issue to kwmcangel@kw.com Keller Williams Realty, Inc. 31

33 Task 10: Review Clearing Commission In this section, you will verify that the YTD balance for Clearing Commission is zero. Many MCAs check this every day. It is recommended to check this at least weekly. The Clearing Commission account is a holding account for monies that need to be paid out. For example, an agent caps and a title company sends the closing check based on the old DA. Place the entire amount in the Clearing Commission account, then split the amount between KW and the agent so the agent won t have an overpayment of fees to KW. Step 1 In AccountEdge, click Find. Step 2 Click the Account tab and review the Clearing Commission Beginning and Ending Balances for the month you are transmitting. Verify that both balances are zero. Note: The Clearing Commission account number is Be sure to update Dated From and To fields to reflect the month you are transmitting Keller Williams Realty, Inc. 32

34 Step 3 If the Clearing Commission YTD balance is not zero, make sure that all checks have been cut or that an A/P invoice has been entered for associates, co-brokers, and outside brokers for money received by your Market Center on their behalf within the current month. Troubleshooting hints: You may have entered a check or invoice with the next month s date instead of a date within the current transmittal month. A DA may have been posted with an incorrect Part 2 Check For entry. Print the Find Transactions Report for Clearing Commission and, using your WinMORE Deposit Summary and the third page of each of the month s WinMORE Deposit Slip Report entitled DA List for Deposit #, verify that the correct commission checks issued (debits) clear each WinMORE Deposit Entry (credit). Check to see if you have imported a deposit twice Keller Williams Realty, Inc. 33

35 Task 11: Verify Debits and Credits Match In this section, you will print your Trial Balance Summary Report and verify that total credits equal total debits. Step 1 In AccountEdge, select General Ledger Trial Balance Summary from the Index to Reports and click Customize to set a date range before printing. Step 2 On the Advanced Filters tab, set the date range from the first of the month through the last day of the month. Click the Finishing tab and check the box next to Include Accounts with No Activity, and click Print Keller Williams Realty, Inc. 34

36 Step 3 Verify that the total debits equal total credits. If they do not balance, verify your company file (Task 1). If they still do not balance, contact AccountEdge Technical Support immediately at kw@acclivitysoftware.com or (800) for assistance. Note: Have your serial number ready when calling AccountEdge Keller Williams Realty, Inc. 35

37 Task 12: Review Undeposited Funds Account In this section, you will verify that the Undeposited Funds account balance is zero. Step 1 In AccountEdge, select Find. Step 2 Click the Account tab and review the Undeposited Funds Ending Balance for the month you are transmitting. Verify that the balance is zero. Note: If the balance is not zero, click Banking and select Prepare Bank Deposit. Complete the bank deposit with a current transmittal month date in order to zero out this balance. Note: The Undeposited Funds account number is Keller Williams Realty, Inc. 36

38 Task 13: Account for E&O There are several ways for a Market Center to account for E&O. Confirm with your Team Leader how your particular Market Center handles E&O. The following steps illustrate how to account for E&O monthly when your Market Center bills the agents through the DAs. Note: If your Market Center charges a flat E&O expense through AccountEdge, all steps associated with accounting for E&O will be handled through your monthly checklist and there are no steps to be completed as part of the transmittal process. For more details, go to KWUConnect and view the skills video on E&O. Step 1 Using the Closed Sales Volume Report, highlight the amount of E&O collected through the DAs for the month Keller Williams Realty, Inc. 37

39 Step 2 In AccountEdge, click Accounts. Click Record Journal Entry. Step 3 Using the last day of the month in which you are transmitting, book the following journal entry using the amount listed on your Closed Sales Volume Report. Debit the account E&O Collected from Agents. Credit the account KWR Excess E&O Reserve/Payable up to $10,000 or 25 percent of next year s E&O Premium. Credit the account Special Events Payable for the excess above $10,000 or 25 percent of next year s E&O Premium. The balance for the account KWR Excess E&O Reserve/Payable should never exceed the IALC Profit Sharing Accounting Guidelines allowance without Regional Director and KWRI approval. If the account reaches the allowed balance, the excess can be placed in a Special Events account. For more information, refer to the Profit Share Accounting Policies and Guidelines in the Policies & Guidelines Manual under Resources on mykw.kw.com. Step 4 Click Record Keller Williams Realty, Inc. 38

40 Task 14: Verify KW Debt, Depreciation, and/or Amortization If you have KW Debt, Depreciation, and/or Amortization, you should have set up recurring Journal Entries as part of the Start-Up Checklist. In this task, you will verify that they have been posted. For more information, refer to the Profit Share Accounting Guidelines in the Policies & Guidelines Manual under Resources on mykw.kw.com. Step 1 In AccountEdge, click Accounts. Click Transaction Journal Keller Williams Realty, Inc. 39

41 Step 2 Verify that KW Debt, Depreciation, and/or Amortization have been posted. In this example, Depreciation/Amortization has been posted and there is no KW Debt. If you want to use KW Debt, please contact kwmcangel@kw.com for instructions Keller Williams Realty, Inc. 40

42 Task 15: Verify Payroll Tax Payable Note: If you are outsourcing your payroll, they may be handling this task for you. In this task, you will verify that your payroll tax has been recorded. Make sure that you verify all entries received are entered according to your payroll vendor. Step 1 In AccountEdge, click Find. Step 2 Click the Account tab and review the Payroll Taxes Payable Ending Balance for the month you are transmitting. Verify that the balance is zero. Note: Be sure to update Dated From and To to reflect the month you are transmitting. Step 3 Review the tax liability report in order to confirm that you entered the federal deposit for the current month s payroll for your IRS Form 941 deposit. These are filed electronically using the Electronic Federal Tax Payment System (EFTPS). Go to eftps.gov for information or contact your Market Center CPA Keller Williams Realty, Inc. 41

43 Task 16: Verify Income Tax Has Been Booked Use this section if your Market Center is profitable and past the break-even point (Retained Earnings and Current Year Profit [Loss] accounts added together equals a debit balance). Verify your Market Center s profitability for the current month by checking your Standard Profit and Loss Report. Step 1 Click Reports. Step 2 Under the Accounts tab, select Standard Profit & Loss. Make sure you customize the report to look at the correct month Keller Williams Realty, Inc. 42

44 Step 3 Take into account that some entries are not yet complete and you will need to manually include them, i.e., Franchise Royalty. If your Market Center is profitable, book an appropriate Income Tax expense, as defined by your current tax rate, in AccountEdge using Record Journal Entry. The maximum is 30 percent of net profit unless approved by Region and KWRI for additional amounts Keller Williams Realty, Inc. 43

45 Task 17: Send Monthly Data to KWFS, Save Your KWFS, and Calculate Preliminary Set Costs In this section, you will submit your monthly data to KWFS and print your Preliminary KW Financial Statement. Step 1 Log in to mykw. Click Technology, then KW Financial Statement. Step 2 At the same time, open AccountEdge. From the AccountEdge Accounts control panel, click Keller Williams Financials Keller Williams Realty, Inc. 44

46 Step 3 In AccountEdge, you will be prompted to enter your Market Center number and the Security Key. Type your Market Center number without any extra numbers, like preceding zeros. Switch to the KWFS. Click Display Security Key. Copy the Security Key. Switch to AccountEdge and paste it into the Security Key field. Note: The Security Key is case sensitive. After you ve initially entered this information, you will just need to confirm it on subsequent data uploads. Step 4 In AccountEdge, click Send Financial Statement to Keller Williams. Upon successful upload you will receive the following confirmation message. See the troubleshooting section of the KWFS guide or kwmcangel@kw.com if you receive any other message Keller Williams Realty, Inc. 45

47 Step 5 Switch to the KW Financial Statement and confirm your accounting data. Click Save. Step 6 Click Print. Step 7 In the KW Financial Statement on the Income Statement, highlight and copy the Current Period- Actual amount for Total KW Approved Costs. Step 8 In WinMORE, click Month-End, and select Set Costs. Step 9 Paste the number that you highlighted for Total KW Approved Costs on the KW Financial Statement. Click OK Keller Williams Realty, Inc. 46

48 Step 10 WinMORE will prompt you to confirm the numbers are correct. Click Yes. Step 11 Click OK Keller Williams Realty, Inc. 47

49 Task 18: Print Preliminary Profit Share Calculation In this section, you will print a preliminary copy of your Monthly Profit Share Calculation. This report will be used to create your KWRI Payable in the next task. Step 1 In WinMORE, click Month-End and select Profit Share Calculation (RPT3). Step 2 If the numbers displayed are not correct, click Cancel and calculate Set Costs, and correct them before proceeding. If the numbers are correct, click OK Keller Williams Realty, Inc. 48

50 Step 3 Important Note: If this is the first time your Market Center is transmitting, enter the amount shown on your prior month s AccountEdge KW Financial Statement for total YTD KW Owner Profit/Loss minus the current month s profit or loss. Pull your previous month s Profit Share Calculation Report. If the Market Center Profit/Loss (bottom left) is a negative number, this is your Loss Carried Forward. If the Market Center Profit/Loss is a positive number, the Loss Carried Forward is,.00. Verify that this matches with the Option dialogue box, and click OK. Note: If you are past the eighteenth transmittal, LCF cannot be changed unless approved by your Region and KWRI and will require a password. Step 4 If an error was found in a previous transmittal that resulted in a Franchise Royalty Adjustment (approved by KWRI), enter the adjustment and click OK. Otherwise, leave the amount at.00 and click OK. Franchise Royalty Adjustments must be approved by KWRI. If you are completing an adjustment that includes a change to royalty, please contact kwmcangel@kw.com for more information on obtaining approval Keller Williams Realty, Inc. 49

51 Step 5 Enter the total number of first-time recruiting appointments your Team Leader held during the month. Then click OK. Step 6 WinMORE will calculate Profit Share. You will also see the following dialogue box. Click OK Keller Williams Realty, Inc. 50

52 Step 7 Print the Profit Share Calculation Report. Make sure that the total Royalty Base used to calculate the Franchise Royalty Fee agrees with your EOM Closed Production Report, Royalty Base column total Keller Williams Realty, Inc. 51

53 Task 19: Create Invoice to KWRI In this section, you create the invoice to KWRI for: 1. Marketing Fee 2. Technology Fee 3. NAT Associate Application Fee 4. Consortium Fee 5. KW Commercial Fee 6. eedge Fee 7. KW Cares 8. KWConnect Fee 9. Other Family Fund Step 1 (Marketing Fee) The Marketing Fee is a standard $83.33 a month per Market Center. Step 2 (Technology Fee) The Technology Fee is a standard $79.00 a month per Market Center Keller Williams Realty, Inc. 52

54 Step 3 (NAT Associate Application Fees) In WinMORE, select Print, then Reconciliation Reports. Click New Associates to print the New Associates Report. Multiply the number of new associates by $25. Verify that $25 has been collected from each new associate and coded to Associate Application Fees in AccountEdge Keller Williams Realty, Inc. 53

55 Step 4 (Consortium Fees) In WinMORE, select Print and then Reconciliation Reports. Click Consortium Fee to print the Consortium Fee Report. Verify that the total of the Consortium Fee Report equals the balance found in the General Ledger Trial Balance for the Consortium Fee account in AccountEdge that was billed to your associates. Note: This is the amount paid to KWRI Keller Williams Realty, Inc. 54

56 Step 5 (KW Commercial Fee) Compare the Profit Share Calculation Report to the Commercial Membership Fee liability account. This should match. If it doesn t, review your transactions with commercial agents as well as the Commercial Associate Fee Billing Report to determine the error. Compare the Profit Share Calculation Report (above) to the trial balance (below). Tip: If your Profit Share Calculation Report is different from the Commercial Membership Fee liability account in your accounting software by a multiple of $85, you most likely have an error is in the monthly membership fee billing to your associates Keller Williams Realty, Inc. 55

57 Step 6 (eedge Fee) In WinMORE, select Print, then Reconciliation Reports. Click eedge Fee Report to print the eedge Fee Report Keller Williams Realty, Inc. 56

58 Step 7 (KW Cares) In WinMORE, select Print, then KW Cares to print the KW Cares Report. Compare this to the KW Cares liability account in your accounting software (much like eedge and Consortium). Note: This report totals only Greensheet donations. If you have additional donations, these will not be included as part of the transmittal process and must be submitted independently. Keep this in mind when reconciling the KW Cares Donation Report, as the KW Cares liability account contains all donations and may not match. For more information on the KW Care Fees, see the MCA Reference Guide. Step 8 (KWConnect) KWConnect is a standard $500 a month per Market Center Keller Williams Realty, Inc. 57

59 Step 9 (Other Family Fund) In WinMORE, select Other, then Ad Hocs to print the KW Family Fund Report. Compare this to the KW Family Fund liability account in your accounting software (much like KW Cares). Note: This report totals only Greensheet donations. If you have additional donations, these will not be included as part of the transmittal process and must be submitted independently. Keep this in mind when reconciling the KW Family Fund Report as the KW Family Fund liability account contains all donations and may not match. For more information on the KW Family Fund Fees, see the MCA Reference Guide Keller Williams Realty, Inc. 58

60 Step 10 In AccountEdge, click Purchases. Click Enter Purchases. Complete the new bill. From the Vendor drop-down, select Keller Williams Realty International. Enter the fees you ve identified. Apply each fee to the correct account and that the total Balance Due matches Remit to KW. Click Record Keller Williams Realty, Inc. 59

61 Task 20: Review Financial Reports In this section, you will review all Financial Reports with your Team Leader or Operating Principal. Step 1 Review all the Financial Reports that you have printed. If your TL or OP has questions, print a General Ledger Trial Balance Detail for review. Step 2 If necessary, correct any errors and reprint corrected reports. Step 3 Obtain Team Leader approval. Note: Complete all of the previous tasks on a weekly basis as part of a soft close. This will help you prepare for the weekly four conversation. Also, if you are checking your key reports and watching your key numbers, you will limit the number of unanticipated issues during transmittal. Be proactive, to improve your chances of having a smooth transmittal. Note: The following tasks should not be done until you are ready to transmit Keller Williams Realty, Inc. 60

62 Task 21: Send Monthly Data to KWFS, Save Your KWFS, and Calculate Final Set Costs In this section, you will print a new KW Financial Statement. Step 1 Log in to mykw. Click Technology, then KW Financial Statement. Step 2 At the same time, open AccountEdge. From the AccountEdge Accounts control panel, click Keller Williams Financials Keller Williams Realty, Inc. 61

63 Step 3 In AccountEdge, you will be prompted to enter your Market Center number and the Security Key. Type your Market Center number without any extra numbers, like preceding zeros. Switch to the KWFS. Click Display Security Key. Copy the Security Key. Switch to AccountEdge and paste it into the Security Key field. Note: The Security Key is case sensitive. After you ve initially entered this information, you will just need to confirm it on subsequent data uploads. Step 4 In AccountEdge, click Send Financial Statement to Keller Williams. Upon successful upload you will receive the following confirmation message. See the troubleshooting section of the KWFS guide or kwmcangel@kw.com if you receive any other message Keller Williams Realty, Inc. 62

64 Step 5 Switch to the KW Financial Statement and confirm your accounting data. Click Save. Step 6 Click Print. Step 7 In the KW Financial Statement on the Income Statement, highlight and copy the Current Period- Actual amount for Total KW Approved Costs. Step 8 In WinMORE, click Month-End, and select Set Costs. Step 9 Paste the number that you highlighted for Total KW Approved Costs on the KW Financial Statement. Click OK Keller Williams Realty, Inc. 63

65 Step 10 WinMORE will prompt you to confirm the numbers are correct. Click Yes. Step 11 Click OK Keller Williams Realty, Inc. 64

66 Task 22: Print Final Monthly Profit Share Calculation and Add Royalty and Profit Share to the KWRI Invoice In this section, you will print your Monthly Profit Share Calculation in preparation for entering your KWRI Profit Share. Step 1 In WinMORE, click Month-End and select Profit Share Calculation (RPT3). Step 2 If the numbers displayed are not correct, click Cancel and redo the prior task, Calculate Final Set Costs, and correct them before proceeding. If the numbers are correct, click OK Keller Williams Realty, Inc. 65

67 Step 3 Important Note: If this is the first time your Market Center is transmitting, enter the amount shown on your prior month s AccountEdge KW Financial Statement for total YTD KW Owner Profit/Loss minus the current month s profit or loss. Pull your previous month s Profit Share Calculation Report. If the Market Center Profit/Loss (bottom left) is a negative number, this is your Loss Carried Forward. If the Market Center Profit/Loss is a positive number, the Loss Carried Forward is.00. Verify that this matches with the Option dialogue box, and click OK. Note: If you are past the eighteenth transmittal, LCF cannot be changed unless approved by your Region and KWRI and will require a password. Step 4 If an error was found in a previous transmittal that resulted in a Franchise Royalty Adjustment (approved by KWRI), enter the adjustment and click OK. Otherwise, leave the amount at.00, and click OK. Franchise Royalty Adjustments must be approved by KWRI. If you are completing an adjustment that includes a change to royalty, please contact kwmcangel@kw.com for more information on obtaining approval Keller Williams Realty, Inc. 66

68 Step 5 Enter the total number of first-time recruiting appointments your Team Leader held during the month. Then click OK. Step 6 WinMORE will calculate Profit Share. You will also see the following dialogue box. Click OK. As stated in the KW Economic Fundamentals, profit is the measure of a healthy business. When you receive this message, it s time to celebrate! 2016 Keller Williams Realty, Inc. 67

69 Step 7 Print the Profit Share Calculation Report. Make sure that the total Royalty Base used to calculate the Franchise Royalty Fee agrees with your EOM Closed Production Report, Royalty Base column total. Step 8 In AccountEdge, click Purchases. Click Enter Purchases. Edit the invoice to KWRI you created in Task Keller Williams Realty, Inc. 68

70 Step 9 Add Royalty and Profit Share to the KWRI invoice based on the Profit Share Calculation report. Franchise Royalty is the amount in the line Less Royalty. Profit Share is the amount in the line Agt. Prof. Share. In the example below, Royalty is 8, and Profit Share is 11,175. Step 10 Confirm the total amount of the invoice equals the Remit to KW total Keller Williams Realty, Inc. 69

71 Step 11 Obtain Team Leader approval Keller Williams Realty, Inc. 70

72 Task 23: Record Direct Withdrawal to KWRI In this section, you will record the Direct Withdrawal entry for the Remit to KWRI total shown on the Profit Share Calculation Report. Step 1 In AccountEdge, click Purchases. Click Pay Bills. Step 2 Select Keller Williams Realty International from the list of vendors Keller Williams Realty, Inc. 71

73 Step 3 Verify that the account is correct. For the check number, use DWMMYY (DW for direct withdrawal and the month and year for which you are transmitting). Set the pay date to the last day of the month. Step 4 Verify that purchases exist for Profit Share and Franchise Royalty and for the Marketing Fee, Technology Fee, NAT, Consortium Fee, KW Commercial Fee, eedge Fee, KW Cares, KWConnect Fee, and Other (Family Fund). This total agrees with the Remit to KWRI total found on the Profit Share Calculation Report. Click Check Already Printed. Step 5 Click Pay All to apply all purchases to the check number DWMMYY. Click Record Keller Williams Realty, Inc. 72

74 Direct Withdrawal KWRI will actually withdraw funds on the seventh business day of the next month. By entering a paid date of the last day of the transmittal month, the KWRI invoice will not cause an Accounts Payable flag on the automated financial review Keller Williams Realty, Inc. 73

75 Task 24: Check Key Numbers In this task, you will verify that your key numbers are in balance between AccountEdge, KWFS, and WinMORE. Step 1 Carefully review the key KWFS and WinMORE account balances for the following accounts, and make sure they agree. KWFS LOCATION WINMORE LOCATION Balance Sheet Total Assets = Total Liabilities + Equity Balance Sheet N/A N/A Agent Royalty Income Statement Agent Royalty Agt. Rlty. Profit Share Calculation Company Dollar Income Statement Co Commission Co_Comm Profit Share Calculation Total KW Approved Costs Income Statement Set Costs Profit Share Calculation Profit Share Income Statement Profit Share Agt. Prof. Share Profit Share Calculation Franchise Royalty Income Statement Franchise Royalty Royalty Profit Share Calculation 2016 Keller Williams Realty, Inc. 74

76 Step 2 Verify that this month s YTD KW Owner Profit (Loss) is correct using the formula below: Last month s YTD KW Owner Profit (Loss) + This month s Current Period KW Owner Profit (Loss) + = This month s YTD KW Owner Profit (Loss) = Note: This step does not apply to Market Centers transmitting for the first time. If the numbers do not match, review your accounting software entries carefully and correct the error. The WinMORE Accounting System will not allow transmittal of out-of-balance financials. The most common reason these numbers will not match is because changes were made to a previously transmitted month or invalid accounts are being used. Step 3 If any of your key numbers are out of balance, review the out-of-balance table for possible explanations and corrective actions. KEY NUMBER Balance Sheet Total Assets = Total Liabilities + Equity POSSIBLE EXPLANATION/ CORRECTIVE ACTION Did you use an invalid account number in AccountEdge that does not appear on the KW Chart of Accounts available from kwuconnect.com? Associate Royalty Make sure the KWFS Income Statement Cost of Sales "Associate Royalty" account and the FR Paid by Agts" are the same number as the Profit Share Calculation "Associate Royalty" amount Keller Williams Realty, Inc. 75

77 KEY NUMBER Company Dollar POSSIBLE EXPLANATION/ CORRECTIVE ACTION Print a WinMORE Deposit Summary Report, and make sure the column totals agree with the AccountEdge Income Statement for accounts through and If an amount does not agree, print a Trial Balance detail for the account and compare entry by entry to the appropriate column on the Deposit Summary Report. All AccountEdge journal entries must match the WinMORE Deposit Summary Report. If you find a deposit entry that does not match, edit and correct the AccountEdge journal entry. Also make sure that the Closed Sales Volume Total Agent Royalty column total matches the KW FS Cost of Sales Agent Royalty amount. If you collect E&O from your agents through closed DAs, make sure the Closed Sales Volume Total E&O column total matches the KW FS Cost of Sales E&O Collected f/agts. Clearing account also needs to be zero. Total KW Approved Costs Check your Financial Statement and make sure the Current Period Actual KW Approved Costs match the WinMORE Profit Share Calculation "Set Costs." Profit Share Check your Financial Statement and make sure Profit Share matches the WinMORE Profit Share Calculation "AGT. PROF. SHARE." Franchise Royalty Check your Financial Statement and make sure the Franchise Royalty amount matches the WinMORE Profit Share Calculation "LESS: ROYALTY." YTD KW Owner Profit (Loss) Changes have probably been made to transmitted accounting data. Reprint the Financial Statement for the last transmitted month and compare it to what was actually transmitted. Correct all changes so the Financial Statement matches how it was transmitted last month Keller Williams Realty, Inc. 76

78 Task 25: Lock the Month in AccountEdge In this section, you will update your lock period to include the month you are about to transmit. Step 1 In AccountEdge, click Setup and select Preferences. Step 2 Click the Security tab and update the lock period to include the month that you are about to transmit. Make sure there is a checkmark next to Lock Period, and make sure to change the date to the first day of the new month. Click OK Keller Williams Realty, Inc. 77

79 Task 26: Send Monthly Data to KWFS and Save Your KWFS In this section, you will rerun the KW Financial Statement to submit your final financials for transmittal.. Step 1 Log in to mykw. Click Technology, then KW Financial Statement. Step 2 At the same time, open AccountEdge. From the AccountEdge Accounts control panel, click Keller Williams Financials Keller Williams Realty, Inc. 78

80 Step 3 In AccountEdge, you will be prompted to enter your Market Center number and the Security Key. Type your Market Center number without any extra numbers, like preceding zeros. Switch to the KWFS. Click Display Security Key. Copy the Security Key. Switch to AccountEdge and paste it into the Security Key field. Note: The Security Key is case sensitive. After you ve initially entered this information, you will just need to confirm it on subsequent data uploads. Step 4 In AccountEdge, click Send Financial Statement to Keller Williams. Upon successful upload you will receive the following confirmation message. See the troubleshooting section of the KWFS guide or kwmcangel@kw.com if you receive any other message Keller Williams Realty, Inc. 79

81 Step 5 Switch to the KW Financial Statement and confirm your accounting data. Click Save. Step 6 Click Print Keller Williams Realty, Inc. 80

82 Task 27: EOM Backup At this point, you will back up your accounting and WinMORE files. Complete a full backup of your computer s hard drive and relevant network files before you proceed. This step is absolutely imperative. It can save you many, many hours of hard work recreating weeks of data entry. Redundant backups are your safety net! Find approved vendors on mykw.kw.com Keller Williams Realty, Inc. 81

83 Task 28: Prepare the Transmittal In this section, you will close out WinMORE and prepare the transmittal files for upload to the KW FTP server. Step 1 In WinMORE, click Month-End and select Prepare Transmittal/Close Month Keller Williams Realty, Inc. 82

84 Step 2 Type YES in the Option dialogue box to proceed with preparing transmittal. You ll see a black and white screen pop up displaying the prepare transmittal ZIP file process and then be returned to the menu. Note: If you forgot to print any of the reports or changed data after printing any report, you will see a screen listing what steps you must go back and complete prior to proceeding with transmittal. If your key numbers do not agree, you will see a screen listing which key numbers need to be corrected prior to proceeding with transmittal. Note: WinMORE will advance your period one month on the main screen Keller Williams Realty, Inc. 83

85 Task 29: Upload Transmittal Files to KWRI In this task, you will send your transmittal files to KWRI. Step 1 In WinMORE, click Month End, then Upload Transmittal. The following screen appears. Click Yes. Click Yes on the next screen to approve the connection Keller Williams Realty, Inc. 84

86 Step 2 The following SFTP Connection screen appears as WinMORE connects to the KW server. When the connection is complete, the final message is The file transfer completed successfully. Press any key to continue 2016 Keller Williams Realty, Inc. 85

87 Once you have transmitted, you will see one of the following two screens. If you see the top screen, congratulations! Your transmittal is complete. If you see the second screen, contact for assistance. Questions about transmittal? Please Keller Williams Realty, Inc. 86

88 Update Log v. 5.0 Added instructions for online KWFS. Included instructions for finding Royalty and Profit Share to add to the KWRI invoice Keller Williams Realty, Inc. 87