Broker Commissions Process
The TELUS TPM platform provides comprehensive broker commission management capabilities, enabling clients to establish, maintain, and execute broker compensation programs with full automation and audit trail functionality. The system facilitates end-to-end commission processing, from relationship configuration through payment documentation and distribution.
Strategic Business Value
Automated Commission Processing:
Efficiency Enhancement: Streamlined monthly commission calculations and reporting
Accuracy Assurance: Systematic processing reduces manual errors and ensures consistent application of commission structures
Audit Compliance: Complete documentation and backup generation for financial reconciliation and regulatory requirements
Relationship Management:
Comprehensive Tracking: Complete visibility into broker-distributor relationships and associated commission structures
Performance Analytics: Detailed reporting on commission payments and broker performance metrics
Five-Phase Process Framework
Phase 1: Broker-Distributor Relationship Administration
Objective: Establish and maintain foundational business relationships and commission eligibility parameters
Key Activities:
Relationship Configuration: Define and document broker-distributor partnerships and authorization structures
Eligibility Management: Establish commission qualification criteria and performance requirements
Hierarchy Maintenance: Configure organizational structures and reporting relationships
Phase 2: Contract Development and Configuration
Objective: Create comprehensive commission agreements with detailed terms, rates, and performance criteria
Key Activities:
Contract Creation: Develop broker commission agreements with specific terms and conditions
Rate Structure Definition: Establish commission percentages, tiers, and calculation methodologies
Performance Metrics: Configure key performance indicators and qualification thresholds
Phase 3: Sales Data Integration and Validation
Objective: Ensure accurate and timely data flow for commission calculation processes
Key Activities:
Data Transmission: Systematic upload and integration of sales performance data
Validation Processes: Quality assurance and accuracy verification of sales information
Data Reconciliation: Alignment of sales data with commission contract parameters
Phase 4: Monthly Commission Processing and Approval
Objective: Execute automated commission calculations and obtain necessary approvals for payment authorization
Key Activities:
Automated Calculation: System-generated commission computations based on sales performance and contract terms
Review and Validation: Quality assurance review of calculated commission amounts
Approval Workflow: Formal approval process for commission payment authorization
Exception Management: Resolution of calculation discrepancies or unusual circumstances
Phase 5: Documentation and Payment Distribution
Objective: Generate comprehensive backup documentation and facilitate payment processing
Key Activities:
Backup Generation: Creation of detailed commission statements and supporting documentation
Payment Processing: Coordination of check generation and distribution to brokers
Record Maintenance: Comprehensive documentation for audit trails and financial reconciliation
Stakeholder Communication: Distribution of commission statements and payment notifications
Step 1: Build Broker/Distributor Relationships
There are three ways to build the broker/distributor relationship:
Configuration Methodologies
Method 1: Visibility Feed and Administrative Tool Configuration
Implementation Approach:
Broker Identification: Define authorized broker entities within the system
Distributor Assignment: Establish distributor portfolios under each broker's responsibility
Administrative Control: Utilize system administrative tools for relationship configuration and maintenance
Business Application:
Method 2: Broker-Distributor Assignment Management
Implementation Approach:
Ownership Tracking: Systematic documentation of broker-distributor ownership relationships
Temporal Management: Comprehensive start and end date tracking for relationship lifecycle management
Dual Configuration Options:
* Automated Data Feed: Systematic relationship management through integrated data feeds
* Manual Administration: Direct relationship management via administrative interface
Business Application:
Historical Tracking: Complete audit trail of relationship changes over time
Flexible Management: Support for both automated and manual relationship administration
Performance Analytics: Enhanced reporting capabilities through detailed relationship documentation
Reference Documentation: Comprehensive guidance available in broker-distributor assignment documentation
- See broker_distributor_assignment for more information.
Method 3: Direct Sales Feed Integration (Recommended)
Implementation Approach:
Transaction-Level Assignment: Broker identification specified directly within individual sales transaction records
Real-Time Accuracy: Immediate relationship recognition at the point of sale
Dynamic Configuration: Relationship determination based on actual sales activity
Business Application:
Precision Accuracy: Eliminates relationship mapping errors through direct transaction-level identification
Operational Efficiency: Streamlined processing without requiring separate relationship maintenance
Data Integrity: Enhanced accuracy through source-level relationship specification
System Recommendation: This methodology represents the preferred approach for optimal accuracy and operational efficiency
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Step 2: Build a contract with a broker
Create a contract for a particular broker, timeframe, products/product groupings, and pricing options offered to the broker. See the section setting_up_a_new_contract for specific information on creating contracts.
Determine if there are any backout/exception rules in place on the contract.
Step 3: The client sends a daily/weekly/monthly distributor sales file to TELUS.
Step 4: Run monthly Commission Process & Approve
The commission processing system leverages established broker-distributor relationships and predefined payment schedules to generate comprehensive commission reports and facilitate accurate payment calculations for broker compensation programs.
Commission Calculation Methodology
Data Integration and Processing
Sales Data Aggregation:
Scope: System retrieves all distributor sales transactions linked to designated broker contractees
Filtering Criteria: Data extraction limited to products specified within active commission contracts and applicable timeframe parameters
Relationship Validation: Processing utilizes established broker-distributor linkages to ensure accurate attribution
Contract Alignment and Calculation:
Payment Schedule Integration: Commission calculations execute according to predefined payment schedule configurations
Contract Matching: Sales data systematically compared against contract terms, rates, and qualification criteria
Commission Computation: Automated calculation of commission amounts based on sales performance and contractual obligations
Report Generation Framework
Broker-Specific Reporting:
Individual Broker Reports: System generates dedicated commission reports for each broker entity
Comprehensive Sales Summary: Reports include complete sales activity for all associated distributors within the specified period
Commission Analysis: Detailed breakdown of commission calculations, including applicable rates, volumes, and total amounts owed
Performance Analytics:
Monthly Sales Aggregation: Complete compilation of distributor sales performance under each broker's portfolio
Contract Compliance Verification: Systematic validation of sales data against contract terms and conditions
Commission Reconciliation: Detailed documentation supporting calculated commission amounts
Review and Approval Workflow
Client Review Process
Earnings Documentation:
Comprehensive Reporting: Detailed earnings spreadsheet generated for client review and validation
Supporting Documentation: Complete backup materials including sales data, calculation methodologies, and contract references
Quality Assurance: Systematic review capabilities to ensure calculation accuracy and contract compliance
Approval Framework:
Client Authorization: Formal client review and approval process for commission payments
Exception Management: Systematic handling of discrepancies or unusual circumstances requiring additional review
Documentation Trail: Complete audit trail of approval decisions and supporting rationale
Business Value and Benefits
Operational Efficiency:
Automated Processing: Streamlined commission calculation reduces manual effort and processing time
Accuracy Enhancement: Systematic data processing minimizes calculation errors and ensures consistency
Scalability: Automated framework supports growing broker networks and increasing transaction volumes
Financial Accuracy:
Contract Compliance: Systematic validation ensures commission calculations align with contractual obligations
Audit Support: Comprehensive documentation supports financial audits and regulatory compliance requirements
Reconciliation Facilitation: Detailed reporting enables efficient financial reconciliation processes
Stakeholder Communication:
Transparent Reporting: Clear, detailed commission statements for broker communication
Client Oversight: Comprehensive review capabilities for client approval and validation
Performance Visibility: Enhanced visibility into broker performance and commission trends
Step 5: Cut check and send backup to Broker
Post-Approval Payment Execution
Claims Generation and Processing
Automated Claims Creation:
Approval Trigger: Upon receipt of client authorization for commission payments, the system automatically generates corresponding claims records
Payment Integration: Claims are systematically incorporated into the next scheduled payment file transmission to the manufacturer
Documentation Inclusion: Comprehensive backup documentation accompanies all payment files to support payment authorization and processing
Payment File Transmission
Manufacturer Distribution:
Systematic Processing: Payment files transmitted to manufacturer according to established payment schedules and protocols
Supporting Documentation: Complete backup materials included to facilitate payment processing and validation
Quality Assurance: Systematic verification of payment file accuracy and completeness prior to transmission
Client Payment Processing and Distribution
Payment Authorization and Execution
Client Payment Responsibilities:
Payment Processing: Client processes approved payments based on transmitted payment files and supporting documentation
Check Generation: Client executes payment distribution through appropriate payment mechanisms
Quality Control: Client validation of payment amounts and recipient information prior to distribution
Broker Communication and Documentation
Backup Documentation Distribution:
Individual Broker Packages: Client receives detailed backup documentation for each payment recipient
Commission Statements: Comprehensive documentation supporting each broker's commission calculation and payment amount
Distribution Facilitation: Documentation packages enable client to provide detailed commission statements to respective brokers
Process Benefits and Controls
Operational Efficiency
Streamlined Processing:
Automated Workflow: Systematic progression from approval to payment file generation
Integrated Documentation: Complete backup materials generated automatically with payment files
Reduced Manual Effort: Automated processes minimize manual intervention and processing time
Financial Accuracy and Compliance
Payment Validation:
Approval Verification: Systematic confirmation of client authorization prior to payment processing
Documentation Integrity: Complete audit trail from commission calculation through payment distribution
Reconciliation Support: Detailed backup documentation facilitates financial reconciliation and audit processes
Stakeholder Communication
Transparent Documentation:
Comprehensive Reporting: Detailed commission statements and supporting documentation for all stakeholders
Client Oversight: Complete visibility into payment processing and distribution activities
Broker Communication: Detailed documentation enables effective communication of commission calculations and payments
This comprehensive payment processing framework ensures accurate, efficient, and transparent broker compensation distribution while maintaining complete documentation and audit trail capabilities throughout the entire payment lifecycle.
Reporting
Advanced Analytics Capabilities
The Tableau Broker Commission Reports platform provides comprehensive analytical capabilities for examining commission data across multiple business dimensions with interactive dashboards and customizable reporting views.
Key Analysis Dimensions
Performance Analytics:
Broker Analysis: Individual and comparative broker performance metrics
Distributor Reporting: Commission generation by distributor partnership
Temporal Analysis: Monthly performance tracking and period-over-period comparisons
Product Intelligence: Product-level commission analysis and portfolio optimization
Financial Validation: Allowed amount tracking and payment reconciliation
Business Benefits
Strategic Decision Support:
Data-driven insights for performance optimization
Trend identification and market opportunity analysis
Informed resource allocation and territory management
Operational Excellence:
Real-time performance monitoring and exception identification
Quality assurance for commission calculations
Transparent reporting for all stakeholders
This analytics platform transforms commission data into actionable business intelligence, enabling informed decision-making and strategic planning across the broker commission program.