Calculation period is the field which determines the period for which Commission is to be calculated.

With the below simple example will try to explain how does CALCULATION period works in Doka.

Configuration (for the type - Standard Commission calculation) used for the below example.

Note : To understand what is Interest Rate type and how does it affect the commission calculation would recommend to go through the article  Interest Rate Type set up - DBIIRT

Example

LC Amount = EUR 800,000.00
Rate = 2 bps (0.02 percentage)
Issue date = 26 May 2023
Expiry date = 07 Feb 2024

Calculated Commission  =  EUR 160      (800,000 * 0.02/100)

Now lets consider the variants of calculation period and how that impacts the calculation; 

Calculation period = MONTH and settle period = UNTIL END
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System considers total No. of. Months in the LC for commission Calculation

Total No. of Months = 9            (26 May 2023 to 07 Feb 2024)
Calculated Commission = 160   (800,000 *0.02/100)

Total Commission = EUR 1440.00 (160 * 9)

If Calculation period = QUARTER and settle period = UNTIL END
***************************************************************************************+
System considers total No. of. Quarters in the LC for commission Calculation

Total No. of Quarters = 3 (Check details of calculation field)
Calculated Comm = 160 (800,000 *0.02/100)

Total Commission = EUR 480.00 (160 * 3)

If Calculation period = HALF YEAR and settle period = UNTIL END
******************************************************************************+
System considers total No. of. Half-Year in the LC for commission Calculation

Total No. of half year = 2 ( Check details of calculation field)
Calculated Comm = 160 (800,000 *0.02/100)

Total Commission = EUR 320 (160 * 2)

If Calculation period = PER ANNUM and settle period = UNTIL END
********************************************************************************+

System considers total No.of. Years in the LC for commission Calculation

Total No.of year = 1 ( Check Details of calculation field)
Calculated Comm = 160 (800,000 *0.02/100)

Total Commission = EUR 160 (160 * 1)

To Know about Different type of Settlement Period and different type of Tiers used in fee calculation, Please go through below articles.

Basic Fee Calculation and Different type of SETTLEMENT PERIODS available in DOKA

Different TYPE OF TIERS available in DOKA for fee calculation