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ConceptReviewed 2026-09-29

Channel partner commissions

Brokerage owed to the channel partner who sourced a booking: accrued from the booking with a basis percent or a gross amount, GST and TDS under 194H, approved to post the accrual journal, and paid out singly or through a Commissions payout run.

Channel partner commissions

A channel partner commission is the brokerage your organization owes the broker or agency that brought a buyer, on the booking that buyer made. It is recorded on the booking as a percentage of the agreed total (or a fixed gross), with GST on the brokerage and the TDS you must withhold under section 194H, and it is approved before it is posted or paid, so finance sees every brokerage before money leaves.

How it works in NirmaanOne

Who the partner is

A channel partner is a company of the Channel Partner type (see Register a channel partner and its people), which can carry a Default commission percent. The partner is named on the opportunity (Channel partner and Partner's contact person in the Source & owner section) and follows the deal to the booking. An allottee buying the unit their offer allots earns no commission ("An allottee buying their allotted unit earns no channel partner commission").

Accruing

On the booking's Demands & money tab, Accrue commission (the Create permission on Commissions; Active booking) opens "Accrue commission on <booking no>":

  • Partner company defaults to the opportunity's partner ("Leave empty to use the opportunity's partner."); a Partner contact is optional. With no partner anywhere: "The booking has no channel partner; pick the partner company or contact."
  • Base amount defaults to the booking's agreed total; Basis % defaults to the partner's default percent; Gross (override) replaces base × basis with a typed figure. One of basis or gross is needed ("Give a basis percent or a gross amount (or a partner with a default percent)").
  • GST on brokerage % ("18% when the partner is GST registered."); TDS section (default 194H) and TDS rate % (default 2; "0 for no deduction.").

The figures, each rounded half-up to the paise:

  • gross = base × basis ÷ 100 (or the typed gross);
  • GST = gross × GST rate ÷ 100;
  • TDS = gross × TDS rate ÷ 100;
  • net payable = gross + GST − TDS.

The commission starts as Accrued: recorded, nothing posted. While Accrued it can be edited (only the amount fields and notes are taken) or deleted.

Approving and posting

Approve on Commission (the Edit permission on Commissions; there is no separate approve right) takes an Approval date and posts one journal in the project promoter's books:

  • Dr the Channel Partner Commission component's mapped ledger (seeded Brokerage Expense) for the gross, on the project's cost centre, unless the brokerage is capitalised (below);
  • Dr GST input: CGST and SGST halves when the partner is in the project's state (or has no state on file), else IGST;
  • Cr the partner's ledger for the net payable, as a new bill COMM-<booking no> (a second commission on the same booking is COMM-<booking no>-2, and so on);
  • Cr the mapping's tax ledger (seeded TDS Payable) for the TDS.

The commission becomes Approved and the amounts are fixed. The seeded rule "Commission approved: tell finance (system)" notifies Finance Leads. Approval needs the component mapped in the books ("The CP_COMMISSION component has no ledger mapping in books <books>") and a net above zero.

When the promoter's books run a revenue policy that defers revenue and capitalises contract costs (the default Ind AS 115 policy does both, and applies to books whose accountant has not chosen one), the debit goes to Contract Acquisition Costs instead of brokerage expense, and each revenue run releases it to expense in step with the booking's revenue; if possession is expected within the policy's practical-expedient months (12 by default), it is expensed at once; when no expected possession date is set, it is capitalised. See Revenue policy.

Paying

An Approved or Partially Paid commission is paid by a payout: Record payout on the commission (pre-filled with the booking, the partner, purpose "Brokerage" and the open amount), or a Commissions payout run, which drafts one payout per partner for every open commission in the books. Clearing the payout debits the partner's ledger against the COMM bill and credits the bank; the commission moves to Partially Paid or Paid as the cleared payouts reach the net payable. See Receipts and payouts: allocation, clearing and the UTR.

Cancelling and clawback

Cancel marks an Accrued commission cancelled; on an Approved one it reverses the accrual journal and settles the bill. It is refused once anything is paid or a pending payout is allocated ("Money has been paid against this commission; bounce or reallocate those payments first"). The booking cancellation wizard offers Claw back the unpaid commission, which does the same for Accrued and Approved commissions on the booking; it cannot be used while any commission on the booking has been paid out.

Example

Booking BK-2026-27-00007 (agreed total ₹1,36,94,683.00) came through Skyline Realty Advisors, a GST-registered partner in Mumbai with a Default commission of 2%.

  1. On the booking's Demands & money tab the accountant presses Accrue commission, keeps the defaults and sets GST on brokerage to 18. The server works out:
    • gross = ₹1,36,94,683.00 × 2 ÷ 100 = ₹2,73,893.66;
    • GST = ₹2,73,893.66 × 18 ÷ 100 = ₹49,300.86;
    • TDS 194H = ₹2,73,893.66 × 2 ÷ 100 = ₹5,477.87;
    • net payable = ₹2,73,893.66 + ₹49,300.86 − ₹5,477.87 = ₹3,17,716.65. The toast reads "Commission accrued: 3,17,716.65 net payable." and the commission page shows the Basis as "2% of 1,36,94,683.00".
  2. The Finance Lead approves it on 10 October 2026. The books keep the default revenue policy and possession is more than 12 months away, so the brokerage is capitalised. The journal: Dr Contract Acquisition Costs ₹2,73,893.66; Dr GST Input Tax Credit - CGST ₹24,650.43; Dr GST Input Tax Credit - SGST ₹24,650.43; Cr Skyline Realty Advisors ₹3,17,716.65 (bill COMM-BK-2026-27-00007); Cr TDS Payable ₹5,477.87. Debits and credits both total ₹3,23,194.52. On books whose policy is Revenue on billing, the first line would be Brokerage Expense.
  3. The month's Commissions payout run drafts one payout of ₹3,17,716.65 to Skyline, is approved, exported as the bank file and cleared with the UTR. The commission is Paid and the bill is settled; the ₹5,477.87 stays in TDS Payable until it is deposited.

Had the partner given a flat fee instead, the accountant would have typed Gross (override) ₹2,50,000.00, and the GST and TDS would have been worked out on that.

Where you see it

Related

  • Demands & moneyScreen

    The booking's demands, receipts and payouts, and channel-partner commission in one place, with shortcuts to raise a demand, record a receipt and accrue commission.

  • CommissionsScreen

    Every channel-partner commission accrued on bookings, with filters for status, payable state, project and books, and a shortcut to open each one.

  • CommissionScreen

    One channel-partner commission: the partner, the brokerage with GST and TDS, the payouts against it, and the actions to edit, approve, cancel or delete it.

  • Record receipt / Record payoutScreen

    Record money received from a buyer or society member, or paid to a channel partner or society member: who, how and how much. A receipt settles the payer's open demands by itself, oldest due first; a payout is allocated to commissions or benefit rows by hand. A buyer's consideration and GST are two separate receipts; the TDS they deducted is a TDS credit.

  • Payout runsScreen

    Every payout run of the chosen books, the dialog that drafts a new run of member benefits, commissions or refunds, and the scheduled rules that draft runs automatically.

  • Payout runScreen

    One payout run: its payouts, skipped payees and failures, and the steps to approve it, export the bank file, clear it with the bank's UTRs or cancel it.

  • Component mappingsScreen

    Which ledger each charge component posts to in the chosen set of books (a main ledger, an optional second tax ledger, an optional cost centre and, for sale and tenant charges, the revenue treatment and contract liability ledger), and the action to copy template additions into the books.

  • Revenue policyScreen

    The CA's effective-dated choices on how the books recognise sale revenue and the costs that go with it: framework, method, possession trigger, OC rule, cost treatments and judgement areas.

  • Contract balancesScreen

    The Ind AS 115 contract-balances disclosure per project over a period: contract liability, contract asset and contract acquisition costs rolled forward from the ledger, with the revenue recognised in the period and how much of it came out of the opening liability.

  • Company (<company name>)Screen

    One company's registrations, contact details, type-specific details, the people you deal with there and its bank accounts, with shortcuts to edit, delete or read the record's history.

  • New opportunityScreen

    Start a lead: the project, the buyer (a new person or an existing contact), where the enquiry came from, who works it, any channel partner to credit, and what the buyer is looking for.

  • Cancel bookingScreen

    The four-step wizard that cancels a booking: it shows the demands and receipts that will be reversed, suggests the forfeiture and charges from the rule in force, sets the refund and posts everything in one go, releasing the unit and parking and marking the opportunity lost.

  • Booking: agreed total, applicants and sharesConcept

    A booking is the closed deal on one unit for one opportunity, made from the current Approved estimate: it fixes the agreed total, numbers itself by financial year, books the unit and parking, and names the primary applicant and the co-applicants with their ownership shares.

  • Receipts and payouts: allocation, clearing and the UTRConcept

    A receipt is recorded as Pending and settles the payer's open demands by itself, oldest due first; a payout is allocated to commissions or member rows by hand. Both post their voucher only when cleared and can be bounced afterwards; the UTR is the bank's transfer reference, typed on NEFT-style payments and per payout when a payout run is cleared.

  • Booking cancellation, forfeiture and refundConcept

    Cancelling a booking reverses its demands with credit notes, posts the forfeiture and any charges against the buyer's ledger by the rule in force, creates the refund as a pending payout for the credit that is left, and frees the unit and parking; with nothing billed or received it only frees them.

  • Contacts, companies and company typesConcept

    A contact is a person; a company is a legal entity with people attached. The company type decides which registrations the form asks for (promoter, channel partner, vendor, contractor), and a channel partner's default commission feeds the commissions on the bookings it brings.

  • Demands, demand runs and the GST splitConcept

    A demand is the bill raised on a buyer's installments (or a member's offer charges): numbered by financial year, billing the full total with the buyer's expected 194-IA TDS shown apart, posted as a sales voucher with GST split as CGST + SGST or IGST by place of supply; a demand run raises one demand per buyer for everything due by a date.

  • Register a channel partner and its peopleHow-to

    Register a broker or channel partner as a company with its RERA agent registration and default commission, attach the people you deal with there, and record the payout account its commissions are paid into.