Commission Rate Plan Basics

Commission Rate Plans provide flexible methods of meeting Client requirements for complex contingency terms which change on scales mitigated by ranges of criteria.

As at the current shipping version CV11.6.2.2, the types of rate plans that are supported in the software are as follows:

• Age
• List Amount
• Payment Amount
• Paid To Date
• Payment Days From Listing
• Payment Days From Delinquent
• Payment Days From Charged
• Remaining Balance

For these rate plans to work successfully, there are two important considerations:

1. That your plans are constructed such that each level in a scaled rate properly intersects with the next level in a smooth progression that leaves no area in the defined data-set unaccounted for. Example - if your plan is List Amount based and the first tier is $0.00 to $500.00, your second tier in the plan would start at $500.01 and NOT at $501.00 because the latter will leave any account assigned in a balance range of $500.01 to $500.99 unaccounted for in the tier definition.
2. For greatest new account input efficiency, it makes sense to have the appropriate rate plan affixed to each Client BEFORE you begin entering new accounts. This will allow the rate plans to be embedded with the Client driven rate plan as they are being entered rather than having to rely on an operator to remember to insert one on every account AND not to have any typo errors in the process of manually entering them. Having your Clients properly defined in advanced not only saves on human resource time, it mitigates the margin for error if the insertion of such an important piece of information is reliant on an automated process rather than a person.

Once a Rate Plan is attached to a Debtor, all transactions of the Financial Type "Payment" will be managed as per the rules set out in the rate plan. It is an operational choice whether to ascribe a Rate Plan entry for a flat rate (i.e. 25% and no Levels or Tiers) or whether to simply hardcode flat rates onto Clients and into Debtors.

If your operation is small and very few Clients utilize true Multi-Level Rate Rlans, reserving them ONLY for those few Clients who need them may be the simplest method.

If your operation is larger and you have many Clients who utilize unique Rate Plan structures, there is merit to having operational standardization which dictates that all Clients have defined Rate Plans. Large Clients that change their terms often get their own unique Rate Plans to prevent any changes made to one Client's contingency structure inadvertently affecting other Clients who may be sharing that plan.

Commission Rate Plan Screen

Accessing Commission Rate Plan

The Commission Rate Plan setup menu can be accessed three ways. Which way you choose will be determined by your Operator level access rights and navigational preferences.

1. Using the menu bar at the top of screen, the menu path is "System\ Financial Settings\ Commission Rate Plans". Once inside, your list of existing plans will be presented with the customary buttons to Delete/ Edit/New entry.
2. From the Main Menu, the path is from the buttons on the left side of the screen, " System Administration\Setup and Configuration\ Plans and Reference Tables\Commission Rate Tables".
3. Or, while on ANY screen which has a "Rate plan" field attached to a pick list pulldown menu, specifically a Debtor Commission Tab or Client Commission Tab, you may make a selection from the list to update or modify the record you are on for the list which shows you the selection of all currently available plans in the system.

See Also

- Client Topics