The Commission plays a vital role for every transactions.

The banks will receive the commission for their service provided on each of the transactions.

This commissions are calculated and settled for a period of time during the life cycle of a contract. The actual payer of the commissions for each contract is agreed between the parties. 

For instance the Guarantee commission is charged at the time of issuance. Any commission to be calculated is settled either at the end of the period/ in advance. The Calculation period is the period for the complete calculation at a particular rate on certain period (half year, Month, quarter(s), p.a. , half year(calendar), Month(calendar), Quarter(calendar)…). The Settlement period is the period when the payment becomes due (quarterly, half-yearly, yearly, until end, up to amount...).

The system will provide the detail overview of the current and future calculations based on the actual calculation settings. This details includes the current settlement and the next settlement due date.

The Info button provides the details of the commission calculation,

And the Details button will provide the complete details of calculation( Current/ Future Calculations) over a period of time,

GITCOM: 

The due commissions that are to be settled for the respective Guarantee contract is done through the Guarantee Commissioning transaction (GITCOM).

System allows to handle this transaction in two ways;

• To Start it manually after selecting a guarantee/Standby (or)
• To Start Automatic Commissioning for Guarantees/Standby through (GIBCOM) by the administrator.

Manual Commissioning for Guarantees/Standby (GITCOM):

To process commissions manually for an existing Guarantee contract, GITCOM transaction is used. 

(Users can directly start this transaction by clicking the  (Launch transaction ) available in the Panel headline without having to select the relevant menu)

When you have made your changes, click on the ( )  Save function to save all the the data entered in the transaction to the database.

Automatic Commissioning for Guarantees/Standby (GIBCOM):

This is a Batch program transaction that runs automatically every time once in a day. 

The Automatic processing of fees for guarantees is done either manually or automatically through background processes.

(Users can directly start this transaction by clicking the  (Launch transaction ) available in the Panel headline without having to select the relevant menu)

If the GIBCOM transaction is already processed, the selection date and the value date from GIBCOM are used for the reference date and the value date when settling commission.

Both the selection date and the value date are passed on to the Commissioning transaction (GITCOM)

The respective guarantee contract is registered under the pending items after the commission to be settled has been determined.

The difference between the commissioning transaction and the normal Settling Charges is that this transaction calculates and settles commissions due at the reference date.