1.2.3 Basis for Application
To specify the basis for the application of the commission, you need to specify the following attributes:
| Field | Description |
|---|---|
| Amount Type | If the rate type specified for the commission component is a fixed rate, specify the basis amount on which the commission should be applied. |
| Category | If the rate type specified for the commission component is fixed, specify the
type of Basis Amount that has to be considered for commission
calculation.
The category can be one of the
following:
|
| Accruals | The commission on a contract can be accrued over a period. You can accrue some or
all of the commissions defined. The frequency of the accruals has to
be specified, as part of product preferences. All the components
that have to be accrued will thus be accrued at the same
frequency.
The accruals will be carried out at the specified frequency, by the batch-processing program for the product, during End of Cycle processing. Note: In case of periodic commission, accrual with monthly frequency happens on the month end; that is on the last working day of the month. The system accrues commission at the end of commission collection period. Whenever there is an auto CLIQ (Commission Liquidation) event, the system accrues commission (Catch-up accrual) for that particular day. For a Letters of Credit contract, in case of
periodic commission, the system accrues commission till the
end of the month on the last working day of the month if:
|
Parent topic: Linking a Commission Rule to a Product