Finance Commission Clawback

Scenario

A finance commission has been posted to a deal at the point of sale, and a receipt has been issued to confirm the receipt of this money. The deal has since been closed.

Process

If the finance company later decides to claw back the finance commission, it should be managed through the accounts system rather than reopening the deal. This is because the deal was correctly processed and closed with accurate profit calculations at the time of closure. The received money was properly allocated and reconciled within the bank.

To handle the clawback:

1. Record as an Expense: Treat the clawback as an expense for the sales department.
2. Process in Purchase Ledger: Enter it in the purchase ledger as an invoice.
3. Code Appropriately: Use the finance commission nominal code to reduce the value.

By following this process, you ensure accurate financial records without altering the closed deal.