1.1.1 Create Commission Rules

This topic provides systematic instructions to create commission rules.

A commission rule uniquely identifies the basic nature of a commission component. Each commission rule is defined by an eight-character code, called a Rule ID. Attributes are defined for this Rule ID, which is then linked to a product. When a contract is processed, the commission attributes defined for the Rule ID linked to the product will be applied on the contract.

You can define any number of rules for the commission that you would like to collect from your customers.

A commission rule is created in the same way that any Interest, Commission, Charge and Fee (ICCB) rule is created, as follows:
  • The rule is created at the head office branch, by giving it a unique identification and description, in the ICCB Rule Branch Availability screen. In this screen, the rule is made available for use in the required branches by maintaining an allowed / disallowed list of branches.
  • At the required branch, in the ICCB Rule Details screen, the attributes for the rule are defined. Maintaining the attributes in this screen is subject to whether maintenance of ICCB rules is allowed for the branch, and also whether the rule, for which attributes are being defined, is allowed for the branch.
To recall, at the head office of your branch, you can create appropriate ICCB rules and make the rules available to the required branches.
Specify the User ID and Password, and login to Homepage.
  1. On the Homepage, type ‘CFDTFRLA' in the text box, and click the next arrow.
    In the ‘Trade Finance ICCB Rule Availability Maintenance’ screen, you can maintain ICCB rules, which you can make available to desired branches. You can do this by maintaining a list of branches for which the use of the rule is allowed, or disallowed.
    The Trade Finance ICCB Rule Availability Maintenance screen is displayed:
    Description of cfdiccfr__cvs_main.jpg follows
    Description of the illustration cfdiccfr__cvs_main.jpg

  2. On Trade Finance ICCB Rule Availability Maintenance screen, specify the fields.
    For more information on fields, refer to Table 1-1:

    Table 1-1 Trade Finance ICCB Rule Availability Maintenance - Field Description

    Field Description
    Rule Identification and Description

    You must specify a unique identification for the ICCB rule you are creating. If you are creating a commission rule, specify a unique identification for the commission rule. This is the identification that will be used as to identify for the rule, in all subsequent references to it. You must also specify a unique description for the rule.

    You must select the Rule ID to have all the bank branches listed in the Branch field list of options.

    Note:

    After the rule has been created in the ‘Trade Finance ICCB Rule Branch Availability’ screen, the attributes for the rule must be defined in the ‘Trade Finance ICCB Rule Maintenance’ screen.

    Branch Restrictions

    You can maintain a list of allowed branches (that is, the rule will be available for use in the allowed list of branches) or disallowed branches (the rule will not be available for use in the branches in the disallowed list).

    To recall, the attributes for the rule are defined, in the ‘Trade Finance ICCB Rule Maintenance’ screen. Maintaining the attributes in this screen, for a branch, is subject to whether maintenance of ICCB rules is allowed for the branch, and also whether the rule for which attributes are being defined, is allowed for the branch.

    Track for AP

    Check this box if the rule is eligible for receivable tracking.
    Track for AR

    Check this box if the rule is eligible for payable tracking.

    Note:

    • When a rule is linked at the product level, the system marks the Track Receivable and Track Payable for amount tags associated with the rule based on whether ‘Track for AR’ and ‘Track for AP’ check boxes are checked.
    • Netting is disallowed for amount tags marked for ‘Track for AR’ or ‘Track for AP’.
    .
    For details about the Common Branch Restrictions, refer the Security Management System user manual

Parent topic: Defining a Commission Rule