Commission Payouts¶

A Commission Payout represents the actual payment of a Commission Statement.

A payout is created from a Posted Commission Statement and tracks the process of paying the approved commission amount to the Commission Payee.

The Commission Statement represents the approved commission.

The Commission Payout represents the payment of that commission.

Purpose¶

The payout stage separates commission approval from actual payment.

The overall flow is:

Commission Statement
        ↓
      Posted
        ↓
Commission Payout
        ↓
   Processing
        ↓
      Paid

This separation allows the application to track whether an approved commission has actually been paid.

Fields¶

Field	Description
Commission Statement	Statement from which the payout was created
Commission Payee	Person or partner receiving the payment
Company	Company making the payment
Currency	Currency of the payout
Amount	Amount being paid
Payment Date	Date on which the payment was made
Payment Reference	Reference identifying the payment
Status	Current payout lifecycle state

The statement, payee, company, currency, and amount are derived from the Posted Commission Statement and are not intended to be manually changed.

Creating a Payout¶

A payout can be created from a Posted Commission Statement.

For example:

Commission Statement
Net Commission: ₹1,500
Status: Posted

Creating the payout produces:

Commission Payout
Amount: ₹1,500
Status: Pending

The payout inherits the relevant statement information.

Payout Lifecycle¶

A Commission Payout follows an explicit workflow:

Pending
   ↓
Processing
   ↓
Paid

It can also move through failure or cancellation states:

Pending
   ├──→ Processing
   └──→ Cancelled

Processing
   ├──→ Paid
   └──→ Failed

Failed
   ├──→ Processing
   └──→ Cancelled

Each state represents a different point in the payment process.

Pending¶

A newly created payout starts as:

Pending

This means the payout has been created but payment processing has not yet begun.

The payout is associated with a Posted Commission Statement.

Processing¶

When payment processing begins, move the payout to:

Processing

This indicates that the payment is being processed but has not yet been confirmed as paid.

Paid¶

When the payment has actually been made, enter the required payment information:

Payment Date
Payment Reference

Then mark the payout as:

Paid

The associated Commission Statement is also marked as:

Paid

This keeps the statement and payout lifecycles synchronized.

Payment Information¶

Before a payout can be marked Paid, the payment details must be provided.

Payment Date¶

The Payment Date records when the payment was made.

For example:

Payment Date: 2026-10-05

Payment Reference¶

The Payment Reference identifies the actual payment transaction.

For example:

Payment Reference: UTR-TEST-0001

The reference could represent a bank transaction identifier or another payment reference used by the organization.

Both fields are required before the payout can be marked Paid.

Why Payment Details Are Required¶

A payout should not simply be marked Paid without evidence of the payment.

Requiring:

Payment Date
+
Payment Reference

creates a basic audit trail for the actual payment.

The resulting history is:

Commission Calculation
        ↓
Commission Statement
        ↓
Approved
        ↓
Posted
        ↓
Payout
        ↓
Payment Date + Reference
        ↓
Paid

Statement and Payout Relationship¶

A Commission Payout belongs to a specific Commission Statement.

The relationship is:

Commission Statement
        │
        └── Commission Payout

The payout amount comes from the statement's net commission.

For example:

Statement Net Commission = ₹500
                ↓
Payout Amount             = ₹500

The payout therefore does not independently recalculate the commission.

The statement is the source of the amount being paid.

One Payout per Active Statement¶

The application prevents multiple active payouts from being created for the same Commission Statement.

This helps prevent accidentally paying the same statement more than once.

Conceptually:

Posted Statement
      │
      └── Active Payout

A second active payout for the same statement is not allowed.

This protects the payment process from duplicate payouts.

Payout Amount¶

The payout amount is based on the statement's Net Commission.

For example:

Gross Commission = ₹2,000
Adjustments      = -₹200
Net Commission   = ₹1,800

The payout amount is:

₹1,800

The payout does not recalculate the underlying commission rules or ledger entries.

Failed Payments¶

A payout can enter:

Failed

when payment processing does not succeed.

A failed payout can be moved back to:

Processing

when payment processing is attempted again.

Alternatively, it can be cancelled when the payout should no longer proceed.

The lifecycle therefore supports recovery from payment failures without changing the original commission calculation.

Cancellation¶

A Pending or Failed payout can be cancelled according to the payout workflow.

Cancellation prevents the payout from continuing through the normal payment process.

The original Commission Statement remains a historical record of the approved commission.

Payout Does Not Change the Ledger¶

The Commission Ledger records the commission calculation.

The Commission Statement records the approved grouping of ledger entries.

The Commission Payout records the payment.

These responsibilities remain separate:

Commission Ledger
    → What was calculated?

Commission Statement
    → What was approved for the period?

Commission Payout
    → What was actually paid?

Marking a payout as Paid does not modify the original Commission Ledger calculation.

Example¶

Suppose a salesperson has a Posted Commission Statement:

Commission Payee: Test Salesperson
Net Commission:   ₹500
Status:           Posted

Create a payout:

Amount: ₹500
Status: Pending

Start processing:

Pending
   ↓
Processing

Enter:

Payment Date:      2026-10-05
Payment Reference: UTR-TEST-0001

Then mark the payout as Paid:

Processing
   ↓
Paid

The associated statement becomes:

Paid

The complete process is now:

Sales Invoice
      ↓
Commission Ledger
      ↓
Commission Statement
      ↓
Generated
      ↓
Under Review
      ↓
Approved
      ↓
Posted
      ↓
Commission Payout
      ↓
Processing
      ↓
Paid

Best Practices¶

Create Payouts Only From Posted Statements¶

A statement should complete its review and approval process before payment begins.

The normal sequence is:

Generated
    ↓
Under Review
    ↓
Approved
    ↓
Posted
    ↓
Create Payout

Record Payment Details¶

Always provide the Payment Date and Payment Reference before marking a payout Paid.

Do Not Manually Change Derived Fields¶

The statement, payee, company, currency, and payout amount come from the associated statement.

Keeping these fields controlled prevents the payout from becoming inconsistent with the approved statement.

Treat Paid Payouts as Historical Records¶

Once a payout is marked Paid, it represents a completed payment event and should be treated as part of the historical audit trail.

Next Step¶

The Concepts section is now complete.

Continue with Commission Lifecycle to see how Plans, Rules, Payees, Ledger entries, Statements, and Payouts work together from start to finish.