Rep Commissions (Payouts) are calculated based on the broker dealer’s agreement with their brokers. Over the years, we learned the broker dealer’s commission needs are unique and their commission calculation requirements reflect their belief in a commission system that will motivate their brokers. BDOS recognizes this, and does not limit you to preconceived constraints as to how rep commissions should be calculated. Rather, we develop custom code tailored to meet your specific commission calculation needs.
Although commission calculation requirements are unique for each broker dealer, there are common concepts. These include commission status, commission adjustment and commission payment.
- Commissions Open – The trade was made and commissions recorded, but vendor payment has not been made.
- Commissions Pending – The trade was made, the vendor paid and you are ready to pay the rep.
- Commissions Paid – The rep was paid.
- Adjustments Pending – A payout adjustment was made, but it has not been reflected in the rep’s earnings.
- Adjustment Paid – A payout adjustment was made and has been reflected in the rep’s earnings.
BDOS provides two types of commission adjustments. A Common Adjustment can be applied to one or more brokers at a time. In the above form, a common “Rep Fee” adjustment of $50 is being applied to a number of brokers. A “One Rep” adjustment can be applied to adjust the total commission of a specific broker.
BDOS allows you to pay rep commissions on your schedule. You can set a minimum commission and BDOS only shows brokers that exceed that commission level. The above form shows a minimum rep commission level of $5,000. You might decide to pay your most productive reps weekly – and only those that exceeded your set minimum level.
BDOS automatically posts the associated general ledger entries, provides an audit trail and records the cash disbursement in your checkbook. If you want, BDOS prints rep commission checks on your existing check stock.