Agent's Commission at Signing and at Settlement.
This section explains the Agent's Commission at Signing and at Settlement.
1. To enter values, navigate to the Agent’s Commission at Signing section.
You need to enter values for when is the commission coming for signing and when is it for settlement.
If you look at the timeline, for example, the project started on 3rd Feb.
You can see that the construction start date was 1st Dec for this particular project.
So, the presales have to start before 1st Dec (some 3-4 months earlier).
2. Enter the Start Date as 1-Sep-20.
3. Let the Duration be 4 months, Forecasting Method be Straight Line and S-Curve Rate be Flat(1).
4. The Sales Commission at Signing can be left blank if it is not applicable to you.
5. Click Save And Refresh after filling all the blue cells.
The End Date will be calculated.
It also distributes the percentage of commission that is due at the time of signing. Now you will come up with the money that you need to pay as commission to the agent before starting the construction so that you get the pre-sale contract. The construction loan will be approved based on that pre-sale.
Once you fill the values for the Agent's Commission At Signing it will automatically calculate the Agent's Commission At Settlement. Here it distributes the cash flow at the time of pre-sales.
6. Similarly, follow the same steps and enter values for the Agent's Commission at signing for Commercial Areas.
All the calculations and the money needed in that period will be forecasted and distribution will be displayed as shown below.