What are Clawbacks (and how to manage them)

TL;DR: A clawback in Centify is the reversal of a commission that was previously paid and is always linked to the original earning. Clawbacks typically occur due to events such as customer cancellations or refunds and are displayed as negative commission amounts. The clawback amount is based only on the portion of the commission that was actually paid, not the total potential commission. To process a clawback correctly, the original earning must first be confirmed for payout so Centify can determine what was paid and what needs to be recovered. If the original commission was never paid due to payout rules or conditions, the clawback amount may be automatically set to €0, ensuring only paid commissions are reversed.

Overview

A clawback in Centify represents the reversal of a commission that was previously granted and paid out. Clawbacks are always directly linked to an original commission (earning) and are created when a paid commission must be recovered.

Clawbacks commonly occur in scenarios such as:

• Customer cancellations

• Refunds or contract terminations

• Adjustments to previously approved commissions

In Centify, clawbacks are displayed alongside the original commission and are clearly marked as a clawback. By default, clawbacks appear with a negative commission amount to reflect the reversal.

How Clawbacks are calculated

The amount of a clawback is always based on the portion of the original commission that has already been paid out.

Key principle

Centify only recovers commission amounts that were actually paid. If part of the original commission has not yet been paid, it will not be included in the clawback.

Example

If an original commission is structured to be paid in two installments:

• Installment 1: €500 (paid)

• Installment 2: €500 (not yet paid)

If the customer cancels after Installment 1 has been paid but before Installment 2 is paid, the clawback amount will be €500 - corresponding only to the amount that was already paid.

Why you sometimes can not approve a clawback earning

A clawback can only be confirmed for payout once the original commission has been confirmed and moved into the payout stage. This requirement ensures that Centify can accurately determine:

• Whether the original commission was actually paid

• How much of the commission needs to be recovered

What you need to do

Always confirm the original commission first. Once the original earning has been confirmed for payout, you can then confirm the associated clawback.

Clawbacks and Payout rule

If you are using payout rules in Centify, the clawback amount may automatically adjust based on whether the original commission was paid.

For example:

• If the original commission was never paid due to payout rules or conditions not being met, the clawback amount may be set to €0.

• This is because there is no paid commission to recover.

This behavior ensures that Centify only reverses commissions that were actually paid, maintaining accuracy and consistency in your compensation records.