Commission accruals

Commission Accounting Policies decides how each plan component recognizes commission expense and liability. This page starts there, then covers the posting setup, the account mappings and the accounting proposals that post Bitta Commission results to the general ledger. A proposal is a balanced set of journal lines built from a frozen settlement, validated, approved by a second person, previewed and posted through a standard general journal batch. Vendor purchase invoices post through the standard Purch.-Post routine.

Before you start

• You need the finance-all security scope. Accounting proposals and reconciliations are created by users with the Bitta Commission Accountant permission set.
• Create G/L accounts for commission expense and commission liability, and any clearing, suspense or recoverable accounts you plan to use. Each must be an unblocked posting account that allows direct posting.
• Create a dedicated general journal batch for commission. Its No. Series and Posting No. Series must be blank, because proposals own their document numbers.
• Set up exactly one effective approval policy for accounting posting (ACCOUNTING-POST) with a separate finance approver. Otherwise submitting a proposal is refused with BAA-WFL-POLICY. See Approval policies.

Accounting policies

Commission Accounting Policies lists each policy version with its Recognition Mode, Expense Timing, Liability Timing, Closed Period Behavior, effective dates and Status (Draft, Active or Retired). When no active policy exists, Prepare Company Defaults on the Bitta Commission Setup Checklist creates an expense-when-earned policy for you.

Only the Bitta Commission Accountant and Bitta Commission Setup Administrator permission sets can create or change policies. Other users see the list without the authoring actions.

1. Choose New accounting policy.
2. On Commission Accounting Policy Draft, enter a Policy code, a Description, Effective from and, if the policy ends, Effective through. Choose the Recognition mode (Expense When Earned or Expense When Eligible; Capitalize and Amortize when the Deferred commission accounting module is on), the Expense timing and Liability timing (Earned, Eligible or Settled) and the Closed period behavior (Block, Next Open Period, Original If Open or Require Reopen).

3. Choose OK. The policy is saved as a draft, version 1.
4. Choose Validate to check the draft without changing it, then Activate and confirm. An active version never changes, and plan components whose dates it covers can use it.

To change an active policy, choose New version, give it its own Effective from, change it with Edit draft, then validate and activate it. Delete draft removes a draft that was never activated. Policy settings opens Commission Accounting Policy Settings for the benefit period, the fringe load percent and the closed-period target. See ASC 340-40 deferrals.

Paid or scheduled timing and custom schedule recognition are refused with BAA-PLAN-ACCOUNTING-POLICY. An existing code is refused with BAA-ACC-POLICY-EXISTS: use New version instead.

Step 1: Configure posting

1. Open Commission Posting Setup. Choose Suggest Values to fill blank fields from your journals and chart of accounts. Posting stays off while you review.
2. Complete the fields and choose Save configuration.

Field	What it does
Posting Enabled	Switches G/L posting on. Requires the journal template and batch, source code, document number series, Require Posting Preview and Require Reconciliation.
Journal Template Name / Journal Batch Name	The dedicated commission journal batch.
Source Code	The source code on posted entries.
Posting Date Rule	Settlement Date, Period End, Work Date, Source Date or Manual.
Document No. Series Code	Assigns one document number per proposal. Retries reuse it.
Require Posting Preview	The standard posting preview must succeed before posting.
Require Reconciliation	Makes reconciliation part of the posting control.
Partial / Final / Delta Doc. No. Series	Optional number series per settlement document type.
Suspense Account No. / Suspense Bal. Account No.	Receive earnings without a mapping. Fill both or neither. Leave blank to block such proposals. Each suspense posting raises an exception.
Payroll Clearing Account No.	Credited by the payroll clearing journal.
Recoverable Account No.	Default receivable account for overpaid commission that a recovery repays.
AP Clearing Account No. / Intercompany Clearing Acc. No.	Clearing targets for accounts payable lines and for pay groups paid by another company.
Foreign exchange group	Realized and unrealized FX gain and loss accounts and the FX rounding account.

3. Open Commission Account Mappings. Choose Suggest from Chart of Accounts, or New mapping. On Commission Account Mapping, fill in the Accounting Event Type (Accrual or Reversal), an optional Component ID or Participant Type, the G/L Account No. (expense), a different Bal. G/L Account No. (liability), the Dimension Policy Code SOURCE, a Priority and the effective dates. The Role accounts group adds clearing, deferral, fringe, prior-period and recoverable accounts. Choose Save configuration.

Step 2: Build, approve and post a proposal

1. On a frozen settlement, choose Create accounting proposal, confirm the posting date on Commission Posting Details and choose OK. Commission Accounting Proposal opens in Draft.

2. Choose Build proposal. The expense and liability lines are built from the frozen settlement with their dimensions.

3. Choose Validate proposal. Commission Finance Validation lists the mapping, balance, date, dimension and source-evidence findings. The status becomes Validated or Validation Failed.

4. Choose Submit for approval.
5. The assigned finance approver chooses Approve proposal, or Reject proposal with a reason. The requester cannot approve their own proposal.
6. Choose Preview posting to run the standard Business Central posting preview. Nothing durable is created.

7. Choose Post to G/L and confirm. The proposal posts through the commission journal batch with standard general journal posting and becomes Posted.
8. Choose Create reconciliation. See G/L reconciliation.

Statuses: Draft, Validated, Validation Failed, Approval Pending, Approved, Posting, Posted, Posting Failed, Cancelled and Reversed. To change an unposted proposal, choose Cancel and create replacement and enter a posting date and a Replacement reason. The replacement needs a fresh build, validation and approval.

Follow-on proposals

Action	What it posts
Create clearing proposal	Relieves the posted liability to the clearing account once the settlement is exported or paid.
Post payroll clearing journal	One general journal document that moves the exported or paid liability of payroll-paid lines to the payroll clearing account. Preview payroll clearing journal shows it first.
Create AP invoices	One purchase invoice per vendor-linked line, posted with Purch.-Post. See Pay through Payables.
Create suspense reclassification	Moves posted suspense entries to accounts that can now be resolved.
Create accrual adjustment	Posts only the delta of corrected earnings already accounted through the settlement.
Create FX proposal	Posts realized, unrealized and rounding FX adjustments in local currency.

Accounting entries and reversals

Commission Accounting Entries is the append-only accounting subledger: every proposal line with its Accounting Event Type, Account Role Code, G/L Account No., Signed Amount (positive is debit), dimensions, settlement and earning lineage and Entry Hash. Entries moved out of a closed period show Original Posting Date and Prior Period Adjustment.

If you reverse a commission G/L register with the standard Business Central reversal, the app records the reversing register against the original posting.

Troubleshooting

• "Commission Core requires G/L posting, valid distinct posting accounts, Accrual or Reversal mappings, and SOURCE dimensions." Complete the posting setup and the mappings.
• BAA-ACC-MIXED-POSTING-DATE. The earnings resolve to different posting dates. Split the settlement by accounting policy.
• BAA-ACC-PREVIEW-PERMISSION. The preview needs journal line insert, modify and delete permissions.

For the accounting reports, see Commission reports.

What's next

Prove the posting: G/L reconciliation.