04. Settlement

Serves as the central hub for calculating and capturing financial activity within the Client Processing system.

04. Settlement Productboard component link

04.01. Deal Financial Structure Processing

Interprets and processes complex financial terms from deals and bookings, creating the structured framework for all subsequent financial calculations.

• 04.01.01. Milestone and payment schedule creation — Creates detailed payment schedules based on contract milestones, service delivery requirements, and other triggering events, establishing the framework for when payments become due. Schedules can be broken out by year, week, and other intervals as needed.

• 04.01.02. Agent allocation calculation — Determines how commissions should be allocated among agent team members based on attribution percentages and team participation arrangements established in Booking Management.

• 04.01.03. Profit participation calculation — Calculates profit participation arrangements including backend percentages, bonus thresholds, and other contingent compensation based on performance criteria from Deal Management.

04.02. Transaction Calculation Engine

Performs all monetary calculations for the system including AR balances, payment allocations, commissions, and various adjustments across all transaction types.

• 04.02.01. AR balance calculation — Maintains real-time accounts receivable balances for all bookings, updating balances as payments are received, adjustments are made, and new charges are added.

• 04.02.02. Commission calculation — Retrieves commission rates from Booking Management and applies these rates to calculate UTA's earnings from each transaction.

• 04.02.03. Payee split calculation — Calculates how payments should be divided among multiple recipients including clients, participants, and UTA based on booking configuration information.

• 04.02.04. Tax withholding calculation — Computes required tax withholding amounts based on client tax status, jurisdictional requirements, and Central Withholding Agreements.

• 04.02.05. Rebate and adjustment calculation — Calculates rebates, charge-offs, commission reimbursements, and other adjustments that affect final payment amounts. Approvals required prior to finalization.

• 04.02.06. Overpayment and underpayment calculation — Identifies and quantifies overpayment and underpayment situations, calculating adjustments needed to correct payment discrepancies. This includes calculating totals for guaranteed (time, OT, etc) vs non guaranteed (reimbursements, relocations) so that proper commission is calculated. See SAG-Commissionable.

• 04.02.07. Pass through payment management — Allows for pass-through amounts to be processed without adjusting the total value of the deal.

• 04.02.08. Loan and advance recoupment calculation — Calculates loan and advance recoupment amounts to be deducted from client payments, tracking outstanding balances and payment schedules.

04.03. Settlement Statement Generation

Creates comprehensive settlement statements and documentation for all parties involved in financial transactions using calculated amounts from the transaction engine.

• 04.03.01. Pre-settlement calculation and validation — Performs comprehensive calculations for pending settlements and validates all amounts before final processing to enable review and approval workflows.

• 04.03.02. Final settlement calculation — Executes final settlement calculations incorporating any last-minute changes or adjustments to produce final payment amounts for all parties.

• 04.03.03. Statement formatting and data preparation — Formats calculated settlement data into appropriate statement layouts for different recipient types, ensuring clarity and professional presentation.

• 04.03.04. Multi-booking settlement calculation — Combines multiple bookings into single settlement statements when appropriate, calculating consolidated payment amounts while maintaining detailed backup information.

• 04.03.05. Commission statement calculation — Calculates and formats commission statements showing UTA's earnings, deductions, and net amounts for internal tracking and agent compensation purposes.

• 04.03.06. Participant statement calculation — Prepares detailed statements for third-party participants showing their earnings, details of all incoming payments, any deductions, and net payment amounts.

04.04. Financial Event Processing

Manages the calculation aspects of all financial events that occur within the system, serving as the bridge between operational activities and their financial implications.

• 04.04.01. Cash application calculation — Calculates the financial impact of applying cash receipts to specific bookings, determining how payments affect AR balances, commission recognition, and settlement timing.

• 04.04.02. Invoice amount calculation — Determines appropriate invoice amounts based on deal milestones, service delivery status, and outstanding receivable balances for both buyer and commission invoices.

• 04.04.03. Payment amount calculation — Calculates exact payment amounts for all parties involved in settlements, including clients, participants, and internal transfers, incorporating all relevant adjustments.

• 04.04.04. Write-off impact calculation — Computes the financial impact of write-off requests on AR balances, commission recognition, and participant payments to support approval decisions.