2.3.2 Commission Calculation on Amending an LC
Periodic commission with increase in LC amount
If you increase the LC amount, periodic commission is calculated based on the same rules as described previously. The periodic rule used for the earlier LC is applied to the increased LC amount unless a new rule is specified at the time of increasing the LC amount. The collection frequency, however cannot be changed while processing an increase in the LC amount.
In case of an amendment,
Where,
The system treats the amended amount as a new LC. A new good until date is computed. The new calculations are based on the amended amount and the commission amount is calculated based on the rule defined for the amendment.
| Term | Description |
|---|---|
| R | Commission rate. |
| I | Increase in liability amount. |
| F | Collection frequency. |
| P | Rate period. |
Parent topic: Periodic Commission Calculation