Commission Process Automation for a Leading UK Energy Management Firm

Business Overview

Our client is a leading UK energy management firm supporting electricity and gas services across hundreds of commercial and residential properties.

As part of its day-to-day operations, the business receives monthly commission payments from multiple energy suppliers. These payments need to be matched against the correct supply records and accurately divided between the client, relevant agents, and the firm's retained margin.

The process becomes more complex as supplier volumes grow. Each supplier may provide commission data in a different format, while payment rules and agent splits must remain accurate across a large number of records.

To simplify this process, the client partnered with IDS Logic to replace repetitive manual work with a more controlled and automated commission management workflow.

The Brief

The client's existing commission process relied heavily on manual data entry and spreadsheet-based calculations.

Finance teams had to review supplier files, match individual commission entries with supply records, and calculate payment splits by hand. Different supplier file formats added another layer of work, as teams often needed to review and prepare data before processing could even begin.

There was also limited opportunity to review a complete batch before commission records were processed. Errors or duplicate entries could therefore require additional checks and manual reconciliation later.

The key objectives were to:

The client needed a solution that could make commission processing faster without reducing control over financial data.

Solutions Overview

IDS Logic designed and delivered a tailored commission automation solution that manages the workflow from supplier file import through to review, approval, and reporting.

01. Streamlined Commission Data Import

IDS Logic created a simpler way for finance teams to process monthly supplier commission files.

The solution can interpret common differences in supplier data, including varying column structures, date formats, and financial values. This removes much of the manual preparation previously required before a file could be processed.

Relevant supply information is also identified during the import process, helping teams work through large commission batches with less manual intervention.

02. Automated Payment Matching and Commission Splits

The solution automatically matches commission entries with the relevant supply records.

Once a match is identified, the appropriate commission rules are applied. Client shares, retained margins, and up to three agent splits can be calculated automatically.

Commission percentages are maintained centrally and reused across relevant records. Teams no longer need to repeat the same calculations or re-enter agent percentages for every new supply arrangement.

Each calculated split is captured when the commission is processed. This gives finance teams a consistent historical view of how payments were divided at that point in time.

03. Two-Stage Review and Approval Process

IDS Logic introduced a structured preview and approval workflow to give finance users more control.

Imported commission data is first presented for review. Users can check matched supply records and calculated commission splits before approving the complete batch.

No commission records are processed until the batch has been reviewed and approved.

If the solution identifies an issue within the file, the batch is held for correction. This helps teams address errors before they affect live commission data.

A final validation is also completed during approval, adding another layer of control to the process.

4. Duplicate Payment Safeguards

Duplicate commission payments can create reconciliation issues and increase the risk of incorrect payments.

IDS Logic introduced multiple validation safeguards to identify commission entries that may have already been processed.

Potential duplicates are flagged before approval, allowing users to understand and resolve the issue. Additional controls prevent the same payment from being recorded more than once.

Since go-live, the solution has maintained duplicate-free commission processing.

5. Improved Commission Reporting

The solution gives finance teams quicker access to commission information once an import has been approved.

Users can review wider commission payment activity or focus on the batch they have just processed. This makes post-import checks easier and provides clearer visibility into monthly commission activity.

The improved reporting process also supports finance teams when reviewing historical payments and commission splits.