Allocations are created in order to allocate portions of a deal's list or sell side commission to a person or organization. An allocation determines the end, amount and tax.
Adding an Allocation
When you create an allocation for a deal, you must select an existing person on the deal. Allocations can be created for agents and outside brokerages. If the recipient is not on the deal, you must first add them on the people page.
The allocation end is used for reporting and calculating the agent's sales volume. The ends for each side should sum to one; if left blank Loft will divide the ends evenly. Ends can be overridden by providing a value.
Allocations can be calculated:
- as a percentage of the commission total for that side
- as an explicit amount
- as an even split of the commission remainder by leaving the field blank
For example, if there is a total of $5,000 in list commission and we have allocations as such:
- List agent "Jaleel" with an automatic (blank) allocation
- List referral "Mikel" with an allocation of $500
Then the allocations will be calculated as such:
- Jaleel will receive $4500
- Mikel will receive $500
Notice how the automatic allocation receives the remainder of the commission less the flat rates. If there is more than one automatic allocation, they each receive an even split of the remainder.
By default, the tax for an allocation is determined using the tax rate set by the deal's office. The tax percentage can be overridden by entering a value in the Tax Override field, or be left blank to use the office tax rate.