Payment Terms (Automating Commissions)

Payment Terms are the rules relating to the rules surrounding Commission Payments.  If the client is able to provide us with a list of rules (e.g. percentages, sale agent names, organisations and how they'd like the commissions to be paid), we can assist them in entering these terms into Property Shell and have these amounts automated. We can set these up at a project level, individual sales agent level and much more.

To set this up, first, you need to go to Payments > Terms then click the + button on the upper right part of the page as shown in the example below

After that, you will see a pop-up that looks like this

Terms and Payees

1. You need to put in the exact name of the Project
2. Select the correct automation depending on how you would like it to work, please see the screenshot below for the options.
   
   
3. Select the correct payee type whether it is a Person or an Organisation
4. Type in at least 2 letters of the Person or Organisation in the Payees section and you should be able to see the name of the person or the organisation in the list. If in any case that the name you are looking for is not there, you should add them first. Click the link below to know more about how to add Agents and Organisations
   (Add Freshdesk article here)
5. Payees Earnt On - in this field, you need to select where should this rule applies. It can be applied to all properties, or just to the ones that have been sold by a Person or Organisation. Here's the option you can choose from
   
6. Description - This is just a brief explanation of how the commission works.

Automated Payments

1. Select whether it is a Debit or a Credit -
   Debits - record all of the money flowing into an account
   Credits - record all of the money flowing out of an account
2. Based on - in this part, you need to determine if the commissions are fixed or need a mathematical formula and this depends on the spreadsheet or pdf's that was sent by the client
   

Automated Payment Due Dates And Amounts

1. Set up the days when will they receive the payment or charge. The common days that are being used by other clients are 7,14 and 30 days
2. Select the sales status on when will the payment or charge will trigger, check the options below.
   
3. Simply put the amount if the commissions are fixed and if not, put a mathematical formula in this field
   E.g. (((total_price*0.0225)-454.55)*0.1)
   This example means - it will multiply the total price of the property by .0225 = meaning the commission is 2.25% of the total price
   after that, it will deduct 454.55 - this is the Marketing Levy and the amount depends on the client's spreadsheet or pdfs
   and then you will multiply the remaining to .1 - this means 10% and it is usually the Franchise Fee
4. In this Field you should put the GST - for AU clients it is 10%
5. Type in what is this for E.g. (Franchise Fee, Marketing Levy, Selling Agent Fee, Listing Fee)
6. If you need to add another Payment event just click on the +ADD NEW PAYMENT EVENT
7. Usually, the commissions are split into two payments. First, after the sales status change to Exchanged Unconditional and then the second is if the sales status is changed to Settled this means you need to put 2 payment events.
   Example: if the commission is 5% of the total price and your client wants to split the payment you need to create 2 payment events, one for 2.5% for Exchanged Unconditional and the 2nd is 2.5% for Settlement.
8. Click save and review all the fields then save again.