Taxes and commissions

Open Business Configuration → Financial Configuration. Configure reusable taxes under Taxes, charging policies under Commissions → Commission Types, and inspect calculated results under Commission Applications.

Understand the three records

• A Tax Definition is a reusable tax rule. It says how much tax to calculate and which Liability Product receives the tax posting. It does not charge a Customer by itself. Attach it to an interest or Commission policy that has a taxable amount.
• A Commission Type is a charging policy. It says what event triggers the charge, who pays it, how the amount is calculated, where the income is posted, which taxes apply, and which eligibility rules must match.
• A Commission Application is the result of evaluating one Commission Type against one Transaction or Account. It records whether the charge was posted, waived, failed, or reversed and preserves the calculation evidence.

There are two Commission families. A transaction commission is evaluated when a configured Transaction Code is used. A COB commission is evaluated during Close of Business for Accounts whose Account Condition includes that Commission Type.

Access and lifecycle

Tax Definitions and Commission Types have separate entity permissions. Read shows the relevant records, Create permits a draft, Update permits eligible changes, and Delete controls supported retirement or restoration. L1, L2, and L3 authority controls the matching checker step.

Both use maker-checker and support amendments after authorization. The current configuration remains effective until an amendment is authorized.

Commission Applications is an operational, read-only view governed by Read Commission Type. It does not create or change Commission Types.

Create a Tax Definition

Open Taxes and select Create Tax.

The selected Liability Product must have posting coverage in every active branch. For a Flat tax, that coverage must use the tax currency. Select Save as Draft or Save & Submit.

Example: a 15 percent commission tax uses Percentage with value 15. When it is attached as Exclusive to a commission of 100, the payer is charged 115, the Commission income is 100, and 15 is posted to the configured tax Liability Product.

New standalone Charge fee definitions are retired. Configure charges as a Commission Type instead. Existing legacy Charge definitions are read-only.

Create a Commission Type

Open Commissions → Commission Types and select Create Commission Type. First decide whether the commission is transaction-triggered or evaluated by COB; the presence of Trigger Transaction Code selects the path.

General and accounting

Enter the Code, Name, Description, and Currency. Select an Authorized internal Income Product as Income Account (GL Category) and an Authorized Posting Transaction Code for the generated charge posting. The Income Product needs posting coverage for the commission currency in every active branch.

For a transaction commission, select the Trigger Transaction Code and the Commission Payer Side. Debit charges each eligible non-GL debit-side account; Credit charges each eligible non-GL credit-side account.

For a COB commission, leave Trigger Transaction Code empty, then select Daily or Monthly frequency and enter a positive Fixed COB Charge. The evaluated account is the payer. COB commissions cannot be transaction- waivable and do not use amount bands.

Example: a monthly maintenance fee is a COB commission. It has no Trigger Transaction Code, uses Monthly frequency, and is attached to the Account Condition used by the Accounts that should be evaluated.

Calculation and bands

Transaction commissions use Flat or Percentage calculation and require a complete set of amount bands before submission. For each band, define its minimum and optional maximum amount and either a fixed charge or a percentage. Percentage bands can also set minimum and maximum charge limits.

Band applies the one matching band's charge to the full amount. Level applies each tier progressively to the portion of the amount within it. Bands must be ordered, non-overlapping, gap-free, and use the Commission Type's currency.

Eligibility rules

Add rules only when the commission should not apply to every eligible event. All rules within one group must match (AND); alternative groups are evaluated as OR.

Transaction commissions can use a minimum transaction amount or processed transaction-count limit for a daily or monthly period. COB commissions can use cleared-balance-below or cleared-balance-above rules. A rule-less COB commission applies to every eligible account and must be explicitly confirmed.

Attach taxes

On Taxes, attach active Authorized Tax Definitions. Set their unique sequence and choose:

• Inclusive: extract the tax from the commission amount;
• Exclusive: add the tax on top of the commission.

Only one inclusive tax is permitted for the commission amount, a Tax Definition can only be attached once, and configured taxes are mandatory.

Save the Commission Type as a draft or submit it for approval. Authorization revalidates currencies, Products, Transaction Codes, bands, taxes, rules, and branch posting coverage.

Apply a COB commission to accounts

Creating a COB Commission Type does not by itself select which accounts it evaluates. Open Account Configuration → Charge / Interest Config, edit the relevant Account Condition, and attach the Authorized COB Commission Type on the Commission tab. The currencies must match.

Review Commission Applications

Open Commissions → Commission Applications to trace what the runtime did. Filter by status, business date, Commission Type, account, or company. The statuses include Pending, Posted, Waived, Failed, and Reversed.

Open a row to inspect the transaction or COB source context, account, charge and tax amounts, posting references, and the rule-evaluation evidence captured at the time of calculation. This evidence is the audit explanation for an individual application, not a place to edit the policy.