Brokerage Reconciliation

At the earliest moment when i heard about the reconciliation of brokerage amount i thought it might be similar to any Bank Reconciliation or any of the cost reconciliation or payment reconciliation statements, but i was too amazed when i came to know about its reconciliation method. It is not totally different from above, but it needs to consider many of the basic agreements between the parties themselves, and some of the new terms like Total Unit Cost(before brokerage), Agreed Rate (Landing Cost), PLC charges, IFMS Charges, Parking charges, infra charges and many more. So, i am going to share my experience while i calculated the same:

1. We have two independent sheets :

a) Flats booked as per Marketing (Company) sheet.

Capture

Company Detail

b) Flats booked as per Broker

brokers sheet

2. Then taking the marketing sheet as the base, we have to calculate the brokerage amount.

3. Brokerage amount will be calculated on the terms of landing rates i.e. on (agreed rates) as per the agreement between the company and the broker.
4. Then calculate the brokerage amount to be release as per the T&C with the broker. It can be under different plan basis as Flexi Plan, Construction linked Plan, Down payment Plan etc. These plans are just the terms for brokerage due.

Ex- (As per down payment plan )

plans

6. After calculating the release amount as per marketing sheet from the different agreements and T&C. then its
time to reconcile them with the Broker’s sheet
7. Now its time to see, that to what extend our calculation is similar or differ from brokers calculation.
8. There might be difference in terms of :
a) No. of Flats booked by Company and the broker
b) Landing cost (Agreed Rate) might be taken different due to misunderstanding or any new agreement basis
which was not informed to other party.
c) Received amount as per company and the broker might be different
d) T&C might not be followed by either of the party
e) Any new agreement held
9.  After considering all the above points we have to prepare   a Reconciliation sheet showing all the working in a
precise way.
10. Reconciliation sheet also must include the reconciliation of payments made as per Brokers sheet and as per
Company’s Sheet.
11. At last, show the net amount payable/receivable as per the company.

Over To You

I just want to conclude that while i was experiencing through this work different huddles were approached to me like : Different agreement copy, No similar or agreed rates, Communication delay in different parts of managements and no proper reply to the queries raised. So, my overall experience was good as this working was different from all others.

So let us know your experience and if there is any other sorts of reconciliation methods , which ones will be least time taking to reconcile this?

Published by

Shushant ( ICAI Final )

Shushant is a Chartered Accountant student at Institute of Chartered Accountants of India. He is also a Student of Company Secretary at Institute Of Company Secretaries of India. He is a administrator of this site . In his spare time he hang out with his friends and discuss about the current issues in market. You can find his latest blog posts at www.enrollmyexperience.com and at his facebook profile.

One thought on “Brokerage Reconciliation”

Leave a Reply