How to Set up Received Balance Commission Rate Logic

Received Balance Commission Rate Logic calculates commission based on cumulative amounts paid on an account. By defining Commission Rate Logic for specified ranges of received balance, ACE calculates commission as payments are processed, applying the correct rates to corresponding portions of the payment.

How It Works

• Define Commission Rate Logic: Establish each commission rate associated with a distinct received balance range.

• Apply Corresponding Rates: Each payment portion within a specific range is calculated using the designated rate.

• Sum Up Commissions: The total commission for a payment is the aggregate of all computed portions.

Example Scenario

Client Commission Rate Logic:

• Received Balance: $0.00 - $50.00 at 5%

• Received Balance: $50.01 - $100.00 at 10%

• Default Rate: 15%

Payment Example

• Payment Amount: $100

• Received Balance Before Payment: $0

Commission Calculation:

1. First $50 (from $0.00 to $50):

   1. Amount: $50

   2. Rate: 5%

   3. Commission: $50 * 5% = $2.50

2. Next $50 (from $50.01 to $100):

   1. Amount: $50

   2. Rate: 10%

   3. Commission: $50 * 10% = $5.00

3. Total Commission:

   1. $2.50 (from Range 1) + $5.00 (from Range 2) = $7.50

In this example, the payment spans two commission ranges. The system automatically splits the payment into the relevant portions and applies the corresponding rates.

Setting Up Received Balance Commission Rate Logic

1. Navigate to Client → Commissions, New

2. Enter data in the Commission Rate Section:

   1. Label: Client Received Balance Commission Rate

   2. Identifier: CLIENT_RECEIVED_BALANCE_COMMISSION_RATE

   3. Description: add description

   4. Commission Type: Client

   5. Apply

   6. Enter data into the Commission Rate Logic:

      1. Label: Range 1

      2. Received Balance = $0.00 - $50.00

      3. Commission Rate = 5% (select the buckets ie, principal, percent interest, percent fee…)

3. Apply

4. Repeat for each Commission Rate Logic needed

5. Save

Add the Client Commission Received Balance Commission Rate

1. Open the Client Profile

2. Locate the Preferences Section, select the Commission Rate

3. Save

Processing Payments

• The Received Balance for each account is recalculated as each payment is applied to the account.

• Detailed commission notes are recorded to the Debt Transaction record if the commission is calculated based on the received balance.

Important Notes

• Per Account Basis: Received Balance Commission is applied per payment per account, not per bundle. If you have bundled accounts, the commission calculation is performed separately for each account based on its individual received balance.

• ACE UI Reports:

  • While reports display cumulative commission totals, they do not show the detailed breakdown by received balance rates. These detailed calculations, as seen in individual transaction records like in the provided screenshot, specify how commissions are divided across different ranges.

• Payment Plans:

  • Commissions shown in payment plan transactions represent the total calculated using the Received Balance Commission Rate Logic. Summary reports, however, will not detail these calculations by rate, unlike transaction-specific displays which provide a full breakdown.