In Commission Calculation - Settlement period is the field which determines in what intervals the commission is to be charged from the party.

Example:

LC Amount = EUR 800,000.00
Rate = 0.2 permille (0.02 percentage)
Issu date = 26 May 2023
Expi date = 07 Feb 2024

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

Total Commission to be charged for the whole LC period = EUR 1440.00 (160 * 9)

Now lets see the impact of various settings of the Settlement Period upon the calculations

If Calculation period = month and Settle period = QUARTERLY
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By giving settlement period as QUARTERLY we are instructing the system to take the commission in Quarterly intervals. Hence system will calculate and charge only for this quarter. Balance commission amount will be charged in the subsequent quarters.

Commission amount to be charged Today = EUR 480 (160 * 3)

On 26.08.2023 EUR 480.00 will be charged for 26.08.2023 - 25.11.2023
On 26.11.2023 EUR 480.00 will be charged for 26.11.2023 - 07.02.2024

If Calculation period = month and Settle period = HALF-YEARLY
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By giving settlement period as HALF-YEARLY we are instructing the system to take the commission in Half-Yearly basis.

Commission to be charged Today = EUR 960 (160 * 6)

On 26.11.2023 EUR 480.00 will be charged for 26.11.2023 - 07.02.2024

If Calculation period = month and Settle period = YEARLY
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By giving settlement period as YEARLY we are instructing the system to take the commission on a Yearly basis.

Commission to be charged Today = EUR 1,440.00 (160 * 9)

If Calculation period = month and Settle period = UNTIL END
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By giving settlement period as UNTIL END we are instructing the system to take the full commission amount on a SINGLE SHOT.

Commission to be charged Today = EUR 1,440.00 (160 * 9)

Note : Config used for Standard Commission calculation 

To Know about Different type of Calculation Method and different type of Tiers used in fee calculation, Please go through below articles

DOKA - Basic Fee Calculation and Different types of Calculation Period used

Different TYPE OF TIERS available in DOKA for fee calculation