Professional Documents
Culture Documents
Channel Commission
(Accounting & Confidential. For internal usage only.
Payment)Process
ADOPTED
PR-SSTL/CAG-004
Process owner:
Corporate Accounts Group
(CAG)
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Process regulations
Channel Commission
(Accounting & Confidential. For internal usage only.
Payment)Process
Document Control
Sanjay Banka
VP Accounting & Taxation
Recommended By
Sergey Savchenko
CFO
Approved By
Revision History
Note:
For document control, Please write your name on the front cover on the hard copy / print out.
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Process regulations
Channel Commission
(Accounting & Confidential. For internal usage only.
Payment)Process
Table of Contents
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Process regulations
Channel Commission
(Accounting & Confidential. For internal usage only.
Payment)Process
1. SCOPE:
This document lays down the end to end process for Payment of commission to Distributors, FOS and
Retailers.
2. OBJECTIVE:
The Company would be appointing Channel Partner in Circle to provide the market for various services
provided by the Company. The Company would appoint Distributor, who in turn would appoint Retailer
and Feet on Street ( FOS)
This document intends to establish well defined, effective and efficient control over Commission
Payment to Channel partners.
3. BUSINESS RULES:
These are only operational guidelines/process and do not override any existing or future Policy or
Finance Authorisation Matrix (AM). In case of any difference, the approved policy will prevail.
Agreement between Distributor and the Company should be on Principal to Principal ( P2P) basis.
Agreement should contain suitable clauses for payment to be made to retailers directly on behalf
of Distributor.
Invoice for all payments would have to be raised by Distributor. In Since in the Books of SSTS, the
transactions are with Distributor, hence accounting would be in the name of Distributor and TDS
certificate would be issued in Distributor name.
No Cash / Cheque payment to be made to distributors / retailers, all settlement for commission
will be done through E Recharge.
TDS certificates to be issued to Distributor on yearly basis.
Commission & Incentive would be paid / credited to Channel Partner as per approved Sales
Policies.
Proper system of Monthly Confirmation from Channel Partners shall be set up and administered
by Circle sales to avoid any fictitious claim.
No claim of previous quarter shall be entertained by SSTS, irrespective of fact whether the CP
has provided Confirmation or not.
Activation Commission would be payable on Daily basis in batch mode. On stabilization of system,
these would be processed on Real time basis.
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Process regulations
Channel Commission
(Accounting & Confidential. For internal usage only.
Payment)Process
The Commisson Payment by E Charge and/or FOS will be centralised to reduce manpower cost
and enhance control.
4. TYPE OF COMMISSIONS:
Following are the type of pay outs to distributors / retailers and the input required for payment of
Commission
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Process regulations
Channel Commission
(Accounting & Confidential. For internal usage only.
Payment)Process
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Process regulations
Channel Commission
(Accounting & Confidential. For internal usage only.
Payment)Process
5. RESPONSIBILITY MATRIX:
Following is the understanding of Corporate Accounts Group ( CAG) on process owners for various steps.
This process document specifies the process listed under step no 8,9, 10
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Process regulations
Channel Commission
(Accounting & Confidential. For internal usage only.
Payment)Process
6. PROCESS STEPS:
1 Commission slabs are decided and Sales, Accounts, 25th of Previous Month
approved as per Authorization Matrix (AM) Finance
on monthly basis at Circle.
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Process regulations
Channel Commission
(Accounting & Confidential. For internal usage only.
Payment)Process
8 On monthly basis, the Sales team to do Circle Sales By 3rd of every month
reconciliation with distributor and take
confirmation from Distributors
1 Commission slabs and sales target are Circle/Corporate 25th of Previous Month
decided by sales and approved as per AM Sales/Finance
on monthly basis duly approved by
budgetary control
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Process regulations
Channel Commission
(Accounting & Confidential. For internal usage only.
Payment)Process
1 Bonus slabs is decided by sales and Sales, Finance 25th of Previous Month
approved as per AM on monthly basis duly
approved by budgetary control
2 On monthly basis the data for primary sales ND & Corporate 15th of every month
of handset to distributors is sent by ND to Devices Team
Corporate Devices Team.
Corporate Devices team to forward the
details of primary sales to Circle Accounts.
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Process regulations
Channel Commission
(Accounting & Confidential. For internal usage only.
Payment)Process
commissions
1 Commission slabs are decided by sales and Sales 25th of Previous Month
approved as per AM on monthly basis duly
approved by budgetary control
Invoice Approval
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Process regulations
Channel Commission
(Accounting & Confidential. For internal usage only.
Payment)Process
1 Commission slabs are decided by sales and Sales 25th of Previous Month
approved as per AM on monthly basis duly
approved by budgetary control
2 Duly approved Note for approval for basis Sales Same Day
and identification of Key retailer is
forwarded by sales to Accounts
( ISSUE- WILL WE HAVE SEPARATE AGREEMENT WITH RETAILER, HOW KR WIL BE CONTROLLED?)
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Process regulations
Channel Commission
(Accounting & Confidential. For internal usage only.
Payment)Process
IT Reports needed for commission transferred to Channel partners on daily basis to CAG.
Basis MIS report, the Accounting for Channel Commission will be done centrally by CAG on weekly basis.
8. INTERNAL CONTROLS:
Commission Slabs to be duly approved as per Delegation of Authority (AM) & Budgetary control.
Independent uploading of Commission slabs in Telecompass by Circle and approval by CAG
Intermediary checking by Circle Accounts prior to credit of E recharge to Channel Partner.
Final E Recharge Transfer by CAG
Monthly reconciliation with Distributor .
Monthly confirmation from Distributor.
Periodical Audit of Channel Pay outs.
Reconciliation by RA for ECV sold / Transferred without cash.
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Process regulations
Channel Commission
(Accounting & Confidential. For internal usage only.
Payment)Process
Report
2 Monthly Primary sale of handset report ND Daily
3 Note for Approval for Key Money Sales Monthly
4 CAF report Daily /Monthly IT
5 Report of Monthly /Quarterly Targets Monthly Sales
The Execution of Commission Process by CAG would depend upon following system dependencies:
a) Availability of IT system of commission (Including report format) payout, invoice Preparation, TDS
certificate shall be available for UAT testing.
b) Functionality for uploading commission structure in TC by Sales and approval by corporate
accounts.
c) Development of IT module for automated entry of all payout/ e-transfer in IRIS by direct
interface, since there would be millions of transactions in a month due to online credit to
retailers and its a humoungous task to physically perform accounting.
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Process regulations
Channel Commission
(Accounting & Confidential. For internal usage only.
Payment)Process
Amendments to the exhibit can be approved and adopted separately from the process regulations.
Approved CFO
Agreed Corporate Sales Head, Corporate Devices Head, Corporate IT Head, Corporate Legal Head
Signatures
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Process regulations
Channel Commission
(Accounting & Confidential. For internal usage only.
Payment)Process
Current
No KPI unit Calculation formula KPO*
value
Process execution measuring KPIs
1 Accurate Calculation of Commissions INR Exception report by Circle Accounts NA 95%
Process outcomes measuring KPIs
2 Timely payments to Channel Partner INR No Complaints NA 95%
Customer satisfaction with process outcomes measuring KPIs
Q1 50%
Q2 75%
Monthly Balance Confirmation with
3 Days 100% Confirmations NA Q3 100%
Channel partner
12. REFERENCE:
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