Termination Type Details

Termination Type Details

Purpose

The Termination Type is used in conjunction with Termination Reasons to allow reporting of account early termination (settlement). 

Usual Termination Types are:
  1. Early Termination
  2. Write Off
  3. Full Term
Termination Reasons can then be associated to each of these Termination Types to provide further detail around the settlement.

For Example, the Write Off Termination Type may be associated with the following reasons:
  1. Insurance Write Off
  2. Bankruptcy
  3. Repossession Sold
  4. Uneconomic to Recover
Termination Types may also be used to establish a period in which Dealer Commission Clawbacks are no longer applied.

Access

  1. Accounts | Edit/View Account Termination Types | 

Dialog Details


Details Specific Fields

Field
Explanation
Commission Clawback Period
Only applicable when Dealer Commission is being paid.

Select the correct time period as required by the early termination type created:
  1. NONE - there is no clawback
  2. 6 Months, Un-expensed commission may be clawed back within the 6 month period 
  3. 12 Months – Un-expensed commission may be clawed back within the12 month period 
  4. 18 Months – Un-expensed commission may be clawed back within the 18 month period 
  5. Contract Term - Unexpired commission may be clawed back at any time over the contract life.
If there is a commission clawback, that amount will post as a debit to the associated Dealer Account and a credit to the Brokerage earned account.

Either a refund will need to be obtained from the dealer for the overpaid commission, or the next payout reduced by the commission amount.

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