2.3.1 Commission Calculation on Opening an LC
The Commissions to be collected for effecting an LC are calculated at the beginning of each collection period, for the period up to the next collection date.
The next collection date is derived as follows:
Last collection date + collection frequency (in months).
For LCs whose commissions be calculated on a periodic basis, the collection frequency is picked up based on the preferences specified in the Product Preferences screen.
The commission is calculated on the current available amount. The formula used to calculate the commission earned for each period is:
Where
| Term | Description |
|---|---|
| R | Commission rate |
| A | Liability amount, as at the time of calculating commission and at the start of each collection period |
| F | Collection frequency |
| P | Rate period |
Parent topic: Periodic Commission Calculation