Let's say you have a franchise fee, referral fee, or tax that you take off the top before you split the agent's commission. You can set this up on the disbursement by adding a pre-commission debit:
You'll choose After for the question: "Calculate agent's commission before or after this item?" if you want to split the agent's commission by the brokerage gross commission amount minus the deduction.
This will lower the gross commission by the amount of your fee, and then split the agent's commission on the lower amount.
If you select No to the question, "Include this credit/debit in the Total Due to Brokerage?" this will reduce the Total Amount Due to Brokerage at the bottom of your disbursement.
This scenario assumes that the payment is being paid out at closing, and/or you don't want a commission check for the full amount. You want a check for the brokerage gross commission minus the deduction. This could apply to an outside referral fee that you want title to pay at closing.
Instead of showing $14,850 due (fig.1) to the brokerage it shows $14,107.50.
That's because it deducted the 5% franchise fee you added which is $742.50 from the total due to the brokerage.
If you want this amount included in the total due to the brokerage then you'll select Yes to the question, "Include this credit/debit in the Total Due to Brokerage?"
This scenario assumes that you want to collect the full commission amount, including the amount of the fee because you'll be paying the fee out separately, or keeping it as additional income.
However, you still want to use the lower gross commission, after the fee was deducted to split the agent's commission.