A fixed advance is an advance for bonus/commission calculated with a fixed percentage. This advance is credited to a recipient and is based on the accumulated paying amount according to the period interval.
The b/c advance method for each bonus/commission agreement (b/c agreement) regulates whether the advance is calculated with a fixed or dynamic bonus percentage. Fixed percentages are entered in 'Bonus/Comm Agreement. Enter Reservations' (OIS414). This program is accessed by specifying option 13=Reservation in 'Bonus/Comm Agreement. Open' (OIS412).
The advance is paid out through credit notes, which are transferred to accounts receivable using the regular M3 invoicing routine. The advance calculated for bonus/commission can be automatically reduced by the advance percentage specified in the b/c agreement. The final settlement of the bonus/commission is then reduced by the amount that was credited in advance.