Overview
The Collect Agent Outstanding Balance (AOB) feature makes it easy for brokers and admins to recover unpaid agent invoices by deducting amounts directly from agent commissions on transactions. Whether the Title/Escrow company or Brokerage distributes the funds, this feature brings simplicity and accuracy to collections, reduces administrative hassle, and eliminates credit card fees associated with traditional collections.
How to Use AOB for Title Distribution
Go to transaction > Commissions > Action > Generate CDA. inIn the modal window, set the "Payouts" block to itemized.
Then, you'll see a "Collect agent outstanding balance" option in front of each user listed with the invoices' total unapplied amount. Click it to proceed.
Hovering over the DUE label will display both the total outstanding balance amount due and the amount already collected.
Then, you'll see a dialogue box listing all unpaid invoices for the agent.
Enter the amount (full or partial) to collect for each invoice as long as it doesn’t exceed the available commission. The system will update the remaining commission balance in real-time.
The itemized CDA updates with the final payout amounts and the collection is logged in the Agent Statement and General ledger activity.
How to Use AOB for Brokerage Distribution
To see whether an agent has unpaid balances that could be covered by their net commission, go to your transaction > Commissions > Action > Post to general ledger.
In an opened window, this will be indicated by a DUE label that displays the total outstanding balance amount when hovering over the mouse.
When you click this agent, you'll see the Apply payments and outstanding balances checkbox disabled by default. Tick it to see the Payments and Invoices to withhold, with the Unapplied received funds line indicating the balance to be withheld.
If you previously set up agent fees collection in the Generate CDA process, this checkbox will already be selected, with the respective invoices and amounts shown. If needed, you can adjust them before posting.
Collected items are reflected in the Agent Statement and the ledger (accounting) activity.
To create a new payment, simply click Add payment made.
When all set, click Post.
What happens when the transaction is posted?
When posted, a Balance Netting entry appears in the ledger, showing unpaid invoices settled against the agent’s commission.
What is Balance Netting?
It is a ledger item that shows how the agent's invoices are paid from their commission.
Here's what it means:
1. The brokerage owes the agent their commission (Accounts Payable).
2. The agent owes the brokerage for unpaid invoices (Accounts Receivable).
3. Balance Netting shows how these two amounts offset each other.
In simpler terms, the brokerage keeps part of the agent's commission to cover what the agent owes.
A real-world example
Let's say an agent earns a $500 commission, but they owe the brokerage $200 for two invoices ($100 each).
The Balance Netting entry in the General Ledger will show as follows:
The "Bank Passthrough" account acts as a temporary clearing account to reconcile Accounts Payable and Accounts Receivable. This clearing account approach is commonly used in Quickbooks, ensuring seamless integration in BoldTrail Back Office.
QuickBooks Online Integration
The “Balance Netting” from BoldTrail BackOffice should be reflected inside Quickbooks as a “Receive Payment” object and a “Bill Payment” object offsetting each other via a bank clearing account ("Bank Passthrough").
Also, you'll be asked to map the BoldTrail Back Office clearing account ("Bank Passthrough") to a clearing account in Quickbooks:
