Commission in rpmsOnline is specified on the Mandate of a Property. Provision has been made to specify various types of commission as shown below:
If Letting Packages have been setup for the Company, you can select the relevant Letting Package from the drop down list and the system will then populate the appropriate commission structure for you.
Provision has been made for:
Procurement Fee - This is normally a once-off percentage of the total Contract Value. For example a 5% procurement fee for a Rental of R 5000 / month for a 12 months Lease would result in a once-off Procurement fee of R 3000. This is the amount excluding VAT that will be billed to the Landlord Account when the Bill Procurement Fee feature is used.
Placement Fee - This is normally a once-off fixed amount that is charged to find and place a Tenant. For example if the placement fee is R 1000, a R 1000 excluding VAT will be billed to the Landlord Account when the Bill Placement Fee feature is used.
Commission % - This is normally a monthly management fee specified as a % of the monthly rent. If a commission of 10% is specified and the monthly rent is R 5000, the system Monthly Rent and Commission billing features will automatically bill R 500 commission to the Landlord Expense account on a monthly basis.
NB: Please note that the amount calculated will be the amount excluding VAT. If you would like the 10% to be inclusive of VAT, you need to specify a commission % of 8.77192982 (make sure to include all the digits in order to avoid rounding errors).
Commission Fixed - This is normally a monthly management fee specified as a fixed amount. If it is set to R 500, an amount of R 500 (excluding VAT) will automatically be billed as an expense to the Landlord account when the system Monthly Rent and Commission billing features are used.