1.5 Maintain Brokerage Discounts

This topic describes the systematic instructions to maintain the brokerage discounts.

The user can maintain discount for a Broker through the Treasury Brokerage Discount Maintenance screen. A stockbroker who carries out buy and sell orders at a reduced commission compared to a full-service broker, but provides no investment advice is called as a Discount Broker. It used to be that only the wealthy could afford a broker and access to the stock market.

The internet has brought an explosion of discount brokers which let you trade at a smaller brokerage. However, it is important to remember that discount brokers don't provide personalized advice. Because of discount brokers, nearly anybody can afford to invest in the market.

To maintain the brokerage discounts details, do the following:

Specify the User ID and Password, and login to Homepage.

1. On the Homepage, enter BRDDISCO in the text field and then click the next arrow.
   The Treasury Brokerage Discount Maintenance screen displays.

   Figure 1-6 Treasury Brokerage Discount Maintenance

   
   Description of "Figure 1-6 Treasury Brokerage Discount Maintenance"

   Note:

   All fields with (*) symbol are mandatory.
2. On the Treasury Brokerage Discount Maintenance screen, specify the fields.

   Table 1-8 Treasury Brokerage Discount Maintenance- Field Description

   Field	Description
   Broker Code	Specify the broker for whom you are defining brokerage discounts. Click the option list and select a Broker Code from the option list.
   Currency	Specify the currency code.
   Discount Transaction Code	Select the transaction code that would be used to post volume discount entries, to the respective GL accounts.
   Discount Reversal GL	Specify the code of the GL to which the discounted brokerage should be credited. Click on the option list and select a GL Code from the option list.
   Discount Type	Select the discount type as Flat Amount or Fixed Rate
   Amount From	Specify the lower limit of the amount slab.
   Amount TO	Specify the upper limit of the amount slab. You can define brokerage discounts for several amount slabs. The range of the amount slab is determined by the entries you make in this field and the Amount To field. The amount of brokerage to be discounted is determined based on the slab into which the liquidated brokerage falls.
   Rate	Specify the rate that should be applied if the liquidated brokerage amount falls within the amount slab you have defined. This field is applicable only if you selected Rate at the Discount Type field.
   Amount	Specify the amount that should be discounted if the liquidated brokerage amount falls within the amount slab you have defined. This field is applicable only if you selected Amount at the Discount Type field.