Monthly commission statements

Build a per-partner monthly statement with payable amounts, GST and TDS-194H columns and tax-detail flags, reconcile it to the ledger, finalize to lock the period, then record your CA's payment reference — Finocket never executes the payout.

A monthly commission statement is the clean hand-off to your accountant: per-partner payable amounts with GST and TDS-194H context, tax details or a MISSING flag, in Excel or CSV. Finocket computes and locks it; your CA executes the payment and you record the reference.

How does a commission become payable?

Three stages, all automatic. Accrued — when a referred client's payment is actually collected (never on invoicing, never on clicks). On hold — the accrual waits out the program's hold window, your refund buffer; a refund in that window claws the commission back with a mirroring ledger entry. Payable — the hold expires and the amount joins the payable-now balance. Flagged accruals (like self-referrals) stay out of payable until the owner approves them, and the payable-now card warns you about pending reviews and partners with missing tax details before you build anything.

How do I build the monthly statement?

Open Partners → Statements (owner-only).
Check the payable-now card — it surfaces tax-missing partners and unresolved review flags so you can fix them first.
Pick the period (a month, e.g. 2026-07) and Build draft. The draft totals what the ledger says is payable for that period.
Download as Excel or CSV — numbers stay numeric in Excel so your CA's formulas work.
Finalize to lock the period. Finalizing requires the statement to reconcile to the ledger — a draft that doesn't add up cannot be locked.
After your CA pays each partner, Mark paid with the payment reference (UTR/cheque number). That writes the payout into the ledger — recording reality, not moving money.

What does each row carry?

Partner name and currency; accrued, on-hold and payable amounts; tax details on file — PAN (India), ABN with GST-registered flag (Australia), or US tax ID — or a clear MISSING flag; GST context where the partner is registered; and the India TDS-194H annotation so the deduction isn't missed. The page also shows annual earned-vs-paid totals per partner — useful at year-end for TDS certificates or, for US partners, the 1099 conversation.

Who does what?

Statements are owner-only — building, finalizing and marking paid all require the workspace owner. Your CA receives the file (download it or share via your normal hand-off), executes the payments from the business bank account, and gives you the references to record. Accountant logins in Finocket read the data but don't build statements. In the sample-data sandbox, building statements is refused — statements are always real.

What are the partner tax downloads?

Three buttons on Commission statements produce the working papers your accountant asks for, computed straight from your commission ledger with your business as the issuer and each partner's tax details attached: a TDS 194H sheet (India) withholding at your workspace's configured TDS rate (2% unless changed), a Recipient-Created Tax Invoice per partner (Australia) for the amount payable this period, and a 1099-NEC sheet (US) for the calendar year that flags which partners cross the reporting threshold. Finocket does the arithmetic; your accountant owns the filing.

Paying the money out stays outside Finocket by design — there is no payout gateway wired in, and nothing moves funds. The statement and tax sheets are the hand-off.

Frequently asked questions

What is the TDS rate on commission under Section 194H?

TDS under 194H is deducted on commission or brokerage paid to residents when the payee's annual total crosses the threshold (₹20,000 in FY 2025-26 rules — confirm the current rate and limit with your CA). Finocket's statement carries a 194H annotation per Indian partner so the deduction is applied before payment, not discovered after.

Is GST payable on commission income?

Commission is a taxable service: a GST-registered partner must charge 18% GST on their commission invoice to you, and you can generally claim that as input credit. The statement's GST column shows registered partners, so your CA knows who should be invoicing with GST.

Why can't I finalize my draft statement?

Finalizing requires the draft to reconcile exactly to the commission ledger. If accruals, clawbacks or approvals changed after the draft was built, rebuild the draft for the period and finalize the fresh one. This is protection: a statement that doesn't match the ledger should never be paid.

What if a partner hasn't given their PAN?

The statement doesn't hide it — the row shows a clear MISSING flag, and the payable-now card warns you before you build. Partners add their own PAN, ABN or US tax ID (and upload the document) from the portal, so chasing is one message: 'open your portal, add your PAN.'

Does marking a statement paid transfer money?

No. Finocket never executes payouts. Your CA pays each partner through your bank, then you mark the statement paid with the payment reference — which records the payout in the append-only ledger so partner portals show 'paid' and the books match the bank.

What about a refund after a partner was already paid?

The hold window exists to catch most refunds before payout. If one lands later, the clawback posts as a negative ledger entry that nets against the partner's next payable balance — the ledger stays honest without anyone editing history.

Partner programs and commissions

Run a referral program with links, coupon codes, milestones and a referee discount — commission accrues only on collected revenue into an append-only ledger, flagged accruals wait for your review, and partners track everything in a self-serve portal.