Telus TPM Documentation

This is an old revision of the document!

---

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:

• Centralized Management: Single-point configuration for comprehensive relationship oversight
• Organizational Structure: Clear definition of broker territories and distributor assignments

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

—–

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

Once TELUS receives approval for the payments, claims are generated and included in the next payment file to the manufacturer along with backup so checks can be cut by the client. The client will also receive the backup per check so they can send it to their Brokers.

---

Reporting

Ability to see Broker Commission reports that slice and dice the data by broker, distributor, month, product, allowed amounts, etc. via Tableau Broker Commission Reports.

---