Commission Stop Date and Commission Calculation

2.4 Commission Stop Date and Commission Calculation

The minimum and maximum limits that can be collected as commission for an LC are defined in the Rule Maintenance screen. This amount cannot be exceeded regardless of the calculation result. The minimum and maximum amounts can be expressed in the local currency or in the currency of the LC, to which it is applied.

For periodic commissions, you can specify the frequency in which the commission should be collected. Future calculations (and collections) can be stopped when necessary. You do so by specifying a stop date (in the Contract ICCF screen). From then on no further commission should be collected.

Field	Description
Effect of stop date on current calculation	If the commission is collected in advance, the current commission will not be affected. However no commissions will be computed or calculated for the periods that fall, after the stop date. If the commission is to be collected in the future (Arrears) an apportioned amount will be collected. This amount is calculated by taking the number of days from when the commission was calculated to 1 day before the stop date (as a proportion of the total amount of commission over the total number of days). Assume that commission is on an accrual basis and in arrears. If a stop date is input, the commission is collected upto one day before the stop date and the necessary entries will be passed. For non-periodic LCs, the total number of days is computed as the number of days from commission calculation date to 1 day before the expiry date. For periodic LCs, it is computed as the number of days, from commission calculation date to end of Rate period or 1 day before the expiry date (for last Rate period).
Effect of stop date on future calculation	If you specify a stop date, all future commission calculations and collections will be stopped from that date.

Field

Description

Effect of stop date on current calculation

If the commission is collected in advance, the current commission will not be affected. However no commissions will be computed or calculated for the periods that fall, after the stop date.

If the commission is to be collected in the future (Arrears) an apportioned amount will be collected. This amount is calculated by taking the number of days from when the commission was calculated to 1 day before the stop date (as a proportion of the total amount of commission over the total number of days).

Assume that commission is on an accrual basis and in arrears. If a stop date is input, the commission is collected upto one day before the stop date and the necessary entries will be passed.

For non-periodic LCs, the total number of days is computed as the number of days from commission calculation date to 1 day before the expiry date.

For periodic LCs, it is computed as the number of days, from commission calculation date to end of Rate period or 1 day before the expiry date (for last Rate period).

Effect of stop date on future calculation

If you specify a stop date, all future commission calculations and collections will be stopped from that date.

Parent topic: Commission Calculation