1.2.3 Basis for Application

To specify the basis for the application of the commission, user need to specify the following attributes:

Field	Description
Amount Type	If the rate type specified for the commission component is a fixed rate, specify the basis amount on which the commission should be applied.
Category	If the rate type specified for the commission component is fixed, specify the type of Basis Amount that has to be considered for commission calculation. The category can be one of the following: Expected Overdue Normal Outstanding
Accruals	The commission on a contract can be accrued over a period. You can accrue some or all of the commissions defined. The frequency of the accruals has to be specified, as part of product preferences. All the components that have to be accrued will thus be accrued at the same frequency. The accruals will be carried out at the specified frequency, by the batch-processing program for the product, during End of Cycle processing. Note: Note: For a Letters of Credit contract, in case of periodic commission, the system accrues commission till the end of the month on the last working day of the month if: The ‘Accrual Required’ field is checked The accrual frequency is monthly The last calendar days of month are marked as holidays for the branch (Local Holidays) Whenever there is an auto CLIQ (Commission Liquidation) event, the system accrues commission (Catch-up accrual) for that particular day. The system accrues commission at the end of commission collection period. In case of periodic commission, accrual with monthly frequency happens on the month end; that is on the last working day of the month.