How do I reconcile commission?

Once you have created receipts for the monies received (see related articles), it will be necessary to reconcile against those amounts the related commission entries.

CCD provides a straightforward solution to most common commission scenarios. There are three main possible scenarios:

1. The Commission received will exactly match that expected
2. The Commission received will be slightly less/more than expected, but the difference is too small to be significant and can be written off
3. The Commission received is less than expected, and the balance will be pursued.

Each of these will be considered in turn.

To begin; select the receipt on which you wish to work.

Navigate to Admin. > Commissions > Receipts

To select the receipt to be reconciled, simply click on the appropriate line of text from the list displayed. If you need to create a receipt, click on + Add receipt.
You are now placed in the basic receipt details screen. If you have just created the receipt, you will need to fill in the basic information required where the text is in red:

To begin reconciling against this receipt, click on the Reconcile tab.

A list of all un-reconciled commission items for the provider recorded on the receipt are displayed:
When the Commission received is exactly what was expected, click on the Black down arrow. The system will now allocate that amount against the ledger entry, record the date received and that amount will be removed from the list.
When the amount received differs from the expectation, the amount received should be entered into the lower box and then click on the upward Red arrow. The system now asks you to confirm that you wish to over-write the amount due with the amount Received and to Write-off the difference. Please note that the use of “write-off" is not used in an accounting sense but rather as accepting the adjustment to the expectation.

You will note that the system keeps a running total of the amount allocated in the top right hand corner of the screen. You will not be allowed to process the receipt until the sum allocated is equal to that received and the balance is £0.

The final option with regards to reconciling commission is that too little is sent and the balance is to be allocated to a suspense account so that it can be reconciled at a later date. This involves the system in the creation of a further ledger entry.

As before, the amount received should be entered into the white box. However, on this occasion, do not click on an arrow, but rather on the expand button alongside the record (green arrow pointing to the right). The screen that will then be displayed is as illustrated below:
As can be seen, the difference between the amount due and amount received is shown at the bottom in red, and clicking on Create Suspense Account entry for £… will create a new entry in the Ledger, relating to this Client and contract, which can then be followed up / reconciled later.

Clicking on the Reconcile tab at the top of the screen will return you to the process of commission reconciliation and will allow the reconciling process to continue.

Creating Bulk Renewal Entries


Often a receipt will include Renewal commission amounts, which might include a large number of very small amounts. In their management of renewal commissions, many firms will choose not to reconcile items individually, but rather to 'batch' up these amounts. This can be done by clicking on the + Add record button, and creating a Renewal record.

The total amount of the renewal received should be entered into the grey box, and then the black down arrow selected.

Using a combination of the above methods, each receipt should be able to be reconciled and processed. Note that you can access the expand (more options) to allocate commission splits.

Once the amount of the receipt has been balanced, the text entry for Process receipt in the bottom right hand corner of the Reconcile tab will turn bright red. Once you are happy that the receipt has been correctly allocated, click on Process receipt to complete the transaction.

Once processed, the items allocated to the receipt can be viewed by clicking on the allocated tab. This provides a list of all the commission allocated to the receipt.