Commission Billables

Commission Billables is a billing automation feature that generates itemized invoices for commission payments when multiple agents share a property sale.

In Philippine real estate, commission splits are standard practice. When a sale closes, each participating agent—whether the listing agent, selling agent, or referral partner—earns a portion of the total commission. Commission Billables automates the creation of separate invoices for each agent's share, calculating the correct percentages, withholding tax deductions, and VAT amounts.

Core Features

• Automatic Split Calculation: Divides commissions based on pre-configured commission scheme configurations
• Multi-Agent Invoice Generation: Creates individual invoices for each agent in a split transaction
• Tax Computation: Applies correct Creditable Withholding Tax (CWT) rates (5% or 10% based on VAT registration status)
• VAT Handling: Adds 12% VAT for agents exceeding the PHP 3 million threshold
• BIR-Compliant Documentation: Generates invoices that meet Bureau of Internal Revenue requirements
• Percentage and Amount Tracking: Records both the percentage split and actual peso amounts per agent

Use Cases

Commission Billables works best for:

• Realty Hubs with Multiple Agents: When your brokerage has agents who co-broker deals
• Referral Networks: Processing commissions for referral tracking where referrers earn a percentage
• Developer Partnerships: Handling developer incentives that require split billing
• Upline-Downline Structures: Generating invoices for multi-level commission structures where uplines receive overrides

You can use Commission Billables to:

1. Configure split percentages before a sale closes
2. Generate all related invoices with a single action
3. Track which invoices have been paid or are pending
4. Export data for accounting software integration

Integration with iRealtee

Within iRealtee's commission module, Commission Billables connects directly to:

• Commission Calculator: Pulls computed amounts for invoice generation
• Invoice Management: Stores and tracks all generated commission invoices
• Commission Release Mechanics: Triggers invoice creation based on release conditions
• Accounts Receivable: Records billable amounts for collection tracking
• Journal Entries: Posts corresponding accounting entries using double-entry bookkeeping

When a sale reaches the billing stage, iRealtee's Commission Billables feature reads the approved commission split, applies the correct tax rates per agent, and generates BIR-compliant invoices. Each invoice includes:

• Agent name and TIN
• Commission amount (VAT-exclusive base)
• VAT amount (if applicable)
• Withholding tax deduction
• Net payable amount
• Reference to the sale transaction

Philippine Tax Compliance

Commission splits in the Philippines follow specific BIR rules under Revenue Regulations 2-98 and RR 11-2018:

• CWT Rates: 5% for non-VAT registered agents; 10% for VAT-registered agents
• VAT Base: CWT is computed on the net commission, excluding VAT
• Documentation: Each agent receives a separate invoice and corresponding BIR Form 2307

The feature ensures each broker reports only the share actually earned, complying with Revenue Regulations requirements for split commissions among co-brokers.

Related Terms

• Commission Management
• Invoice Management
• Commission Split Approval
• Withholding Tax
• Accounts Receivable

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References

• Wikipedia: Invoice
• Respicio & Co.: Withholding Tax and VAT on Real Estate Commissions Philippines
• Bureau of Internal Revenue: Revenue Regulations 2-98