When you recover a debt for a client, do you charge a commission? If so, setup your commission rates in the beginning and assign the relevant rate to your clients. Then when you recover a debt for the client, the system will know how much commission to charge automatically upon applying the payment.
Tools > Accounts Setup > Commission Rates
Commission rates are rules that determine the amount of commission to be charged to the client on receipt of payment.
Commission rates can be changed on a case by case basis. A shortcut (CR) can be found in the shortcut field in the Case Manager, or the commission rate can be changed in Case Maintenance.
Creating a new Fee Scale
A commission rate code must be unique. Enter your new commission rate code in the "Code" field.
IMPORTANT: The code should not contain any spaces or characters other than letters or numbers; except a full stop.
Describe the commission in the field labeled “Description”.
Select to calculate on the debt amount, payment amount, or age of the debt.
Tip: When commission is calculated based on the debt amount, this will include any debt adjustments made on the file.
IMPORTANT: if you select to calculate based on the age of the debt, it will be a flat commission type and will calculate the rate against the payment value.
If calculated on Debt then the fee will be calculated using the amounts allocated to debt type transactions, regardless of what transaction types have been set to calculate on.
If calculated on Payment then the fee will be calculated using the total value of the payment, but based on the transaction types specified to calculate on.
If calculated on Age then the fee will be calculated based on either the age of the debt from the date of debt, or the age from the date loaded; whichever choice is made where indicated.
Select either flat or sliding.
IMPORTANT: Where the type is “Sliding” and there are different commission values depending on thresholds, the system will calculate the commission amount using the commission value in each threshold. For example, in the example below, a payment of $2000, the commission would be calculated at 25% for the first 999.99 and the remaining 1000.01 would be calculated at 20%.
Effective commission: Because commission is generally not calculated on the commission loaded to the debtor, once the debt portion is paid in full, the remaining commission loaded to the debtor would not attract a commission charge. So if a debt is paid in instalments, once the debt portion is paid, there is no incentive for collecting the remaining commission loaded. If “effective commission” is ticked, a new rate of commission is calculated which incorporates the commission loaded to the debtor, thus making the rate lower on a payment by payment basis, but collectively adding up to the full rate on full recovery of the debt and commission from the debtor.
Enter any minimum amount on the value of the case to charge, or leave blank.
Enter any maximum amount on the value of the case to charge, or leave blank.
Enter any minimum amount on the value of the payment to charge, or leave blank.
Enter any maximum amount on the value of the payment to charge, or leave blank.
Thresholds govern what amount is charged according to the size of the selected based on field.
For example, In the screenshot below 10% is charged on amounts up to $9999999999.00.
The value in the thresholds column represents an amount or a number of days, depending of which calculate on option is selected.
If a percentage of the based on value should be charged, input the percentage in the column labeled “Percentage”.
If a flat amount should be charged, input the amount in the column labeled “Comm. Amount”.
Tip: The amount can either be a flat amount or percentage.
Select the transaction types to calculate the commission on.
Tip: Selecting specific transaction types will override the “Charge based on” settings.
Click “Save” to save your fee scale.