Implementation guide · IB Commission Operations
Commission Reversals: Correcting a Paid or Pending Rebate
Correct a partner commission while preserving the original calculation. Separate pending adjustments, paid amounts, recovery rights and replays.
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Quick answer
A commission reversal records a linked adjustment to an earlier accrual when its underlying entitlement changes. It should identify the original commission, the changed evidence, the corrected amount and the approval. A paid commission and a pending commission require different recovery decisions even when their arithmetic adjustment is identical.
Find the affected economic event
A trade correction, ineligible acquisition, rate error or attribution change can affect a commission, but the impact is not necessarily the full original amount. Locate the original earning record and determine which quantity or condition changed. Recalculate under the applicable historical agreement rather than today’s default rate. If several partners shared the event, trace each affected entitlement. An unrelated refund or account adjustment should not automatically reverse every commission connected to that customer.
Preserve the original and post the difference
Keep the initial accrual visible and create a correction linked to it. Store the previous amount, corrected amount, difference, reason, evidence reference and reviewer. A second correction should compare with the currently recognized entitlement so it does not repeat the first reversal. OWASP logging guidance supports records that identify events and their context. A readable audit trail must also show the application’s economic relationships; a server log alone cannot reconstruct a commission ledger.
Sources for this section
- OWASP Logging Cheat Sheetcheatsheetseries.owasp.org
Distinguish accounting from cash recovery
Reducing a pending payable does not move money that has already left the business. If the original commission was paid, the correction may create a recoverable balance, future offset or another outcome allowed by the agreement. Do not silently debit a partner’s bank account or a client trading account. Record the approved recovery decision separately from the corrected entitlement. A disputed correction can remain under review without being presented as a completed cash recovery.
Authorize the correction and handle repeated delivery
The user who can view a statement need not be allowed to change it. Restrict adjustment approval and retain evidence of the amount approved. OWASP transaction-authorization guidance emphasizes binding an authorization to the relevant transaction data; changing the recipient or amount should not reuse an unrelated approval. Give the correction a stable identifier so a repeated upstream message or retry cannot post it twice. Test the original event, the correction and a replay in sequence.
Sources for this section
- OWASP Transaction Authorization Cheat Sheetcheatsheetseries.owasp.org
Correct only the disallowed quantity
Suppose an original fictional rebate booked 2 lots at USD 4, creating USD 8 payable. A verified source correction shows that only 1.5 lots qualify. The corrected entitlement is USD 6 and the linked adjustment is minus USD 2. If still pending, this event’s payable becomes USD 6. If USD 8 was already paid, the same adjustment identifies a USD 2 recovery question; it does not prove recovery occurred. Replaying this correction leaves the recognized entitlement at USD 6.
| Record | Change | Recognized entitlement |
|---|---|---|
| Original accrual C-17 | +USD 8.00 | USD 8.00 |
| Correction R-17 linked to C-17 | −USD 2.00 | USD 6.00 |
| Repeated delivery of R-17 | No new entry | USD 6.00 |
Implementation checklist
- Link the correction to the exact earning event and rule version.
- Calculate the difference from the currently recognized amount.
- Record whether the original amount was pending or paid.
- Keep recovery approval and duplicate-event handling explicit.
Sources
These documents support the reference. Check the original publication for current requirements and the limits of its scope.
- OWASP Logging Cheat Sheetcheatsheetseries.owasp.org
- OWASP Transaction Authorization Cheat Sheetcheatsheetseries.owasp.org
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