Advance Percentage - Bonus/Commission

The advance percentage is used to avoid crediting advances during the agreement period that are too high. If an advance percentage is specified in a bonus/commission (b/c) agreement, only a part of the estimated b/c amount is credited as stated by the percentage. The rest becomes due at a later time.

Advances are calculated automatically based on the bonus/commission advance method specified in a b/c agreement. The advance is specified as a percentage for each b/c agreement in 'Bonus/Comm Agreement. Open' (OIS412). The method can be either fixed or dynamic.

When final settlement is made, the actual bonus/commission amount reached is calculated. This amount is adjusted with any previously paid advances, and the recipient receives the difference.