April 08, 2019

Memorandum Circular - Cancellation Abolition of outright commission policy

Memorandum Circular No.  2019

Subject:   Amendment of Commission Policy (Abolition of outright commission)


Objective

1.  To lessen losses arising from theft of collection due to outright commission;
2.  To make our agents more honest and transparent
3.  To make agents produce necessary sales documents prior to payment of commission

Reality:

1.  Our losses from a memorial park in region 1 is running into millions:

     1.  Many commissions are paid without OCV
     2.  Commissions are paid without sales documents
     3.  Some commissions are alleged to have been paid on forged signatories

2. We cant do much to stop collusion among office staff, and office staff and agents...

Change in policy reversal to old method:

1.  Commissions are to be paid only upon fulfillment of three conditions:

     1.   Registration via appointment slip. 

     2.  Tripping (registered via SG logbook) SE must accompany the buyer

     3. Signature of the seller on the PPA

2.  Sales by JV partner or those tipped by JV representative are voided from
    receiving commission upon previous order.   A violation of this shall mean
   removal from the office of the staff of JV, and are subject to CCD

3.  Com is to be paid only  upon a valid sales transaction and duly supported by:

    1. PPA accurately and completely filled and submitted to 3f via soft or
       hard copy.  No PPA submitted no com

   2.  ID pictures (take your own id if the customer does not have id)

   3.  Insurance declaration

     If any one is missing no com  payment

4.  Another AP for com shall be assigned who must pay the com within working days.  Ap must have complete ledger for com paid and withhold taxes and remit the same promptly as prescribed by BIR rules

 Payment shall be through pay card or ATM which the seller must open

 AP must have a checklist for every com paid:

    1.  Appt slip
    2.  Tripping
    3. Signature on the PPA
    4.  PPA
    5.  ID
    6.  Insurance declaration
    7.  TIN

Effectivity:   April 15, 2019

Action:   Close all Commission fund;
              Pay all outstanding commissions
              Submit all PPA 'and their requirements
              Hire additional ap
              Train him and give him/her a system to do this fast

For comments and suggestions/recommendations



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  Jorge U. Saguinsin

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