Automatic Liquidation of Periodic Commission

3.2.32 Automatic Liquidation of Periodic Commission

The periodic commission components of an Islamic LC is 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 Islamic 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 Islamic LC. These might be a customer’s accounts or a receivable accounts. On liquidation of the commission components of an Islamic LC by the function:

The necessary tax related entries associated with the liquidation is passed.
The necessary debit advices is generated.
The relevant accounting entries is passed. Typically they are

Table 3-13 Collected in Arrears

Role	Role Description	Amount Tag	Dr/Cr
COMM_CUST_ACC	Customer account	Commission	Dr.
CENC	Commission Earned Not Collected	Commission	Cr.

Table 3-14 Collected in Advance

Role	Role Description	Amount Tag	Dr/Cr
COMM_CUST_ACC	Customer account	Accrual amount	Dr.
COMM_RIA	Commission Received in Advance	Accrual amount	Cr.

As a part of EOD, this function liquidates the commission components of all the Islamic LC contracts, for which commission liquidation date falls between the current processing date and the next working date. 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 is generated when the commission components of the Islamic LC, are automatically liquidated:

Parent topic: EOD and BOD Batch Jobs