3.2.22 Automatic Liquidation of Periodic Commission
The periodic commission components of an LC will be automatically liquidated, if the commission components fall due on or before the current system date. As a part of BOD, this function liquidates the commission components of the LC contracts, whose commission liquidation date is between the last working date and the current processing date.
The commission components that are liquidated by this function are posted to the accounts specified, in the settlements screen of the LC. This may be a customer’s account or a receivable account. On liquidation of the commission components of an LC by the function:
- The necessary tax related entries associated with the liquidation will be passed
- The necessary debit advices will be generated
- The relevant accounting entries will be passed. Typically they would be If collected in arrears::
If collected in Arrears
If collected in Advance,
As a part of EOD, this function liquidates the commission components of all the LC contracts, for which commission liquidation date falls between the current processing date and the next working date.
Table 3-11 Accounting Entries
| Role | Role Description | Amount Tag | Dr/Cr |
|---|---|---|---|
| COMM_CUST_ACC | Customer account | Commission | Dr. |
| CENC | Commission Earned Not Collected | Commission | Cr. |
Table 3-12 Accounting Entries
| Role | Role Description | Amount Tag | Dr/Cr |
|---|---|---|---|
| COMM_CUST_ACC | Customer account | Accrual amount | Dr. |
| COMM_RIA | Commission Received in Advance | Accrual amount | Cr. |
If the next working day happens to fall in the next month, this function will pick up only those contracts whose commission liquidation date, falls within the current processing month.
The following reports will be generated when the commission components of the LC, are automatically liquidated:
- An activity report, which lists the contracts whose commission components were liquidated.
- A report on the exceptions that were encountered during the liquidation of the commission components like account closed, no funds in the account, etc.
Parent topic: EOD and BOD Batch Jobs