1 ROOT node

Commission Hierarchy Validation art-264-validate-commission-hierarchy

BFS traversal validates agent hierarchy: per-level split percentages sum to 100%, no orphaned agents, no circular references. Emits is_valid (bool), violations[] with rule codes, and by_level breakdown. Passes to Step 2 for statement reconciliation.

MCP Call · validate_commission_hierarchy

{
  "jsonrpc": "2.0",
  "method": "tools/call",
  "params": {
    "name": "validate_commission_hierarchy",
    "arguments": {
      "hierarchy": [
        {"agent_id": "NP1",      "parent_id": null,   "split_pct": 100},
        {"agent_id": "ManagerA", "parent_id": "NP1",  "split_pct": 60},
        {"agent_id": "ManagerB", "parent_id": "NP1",  "split_pct": 40},
        {"agent_id": "AgentX",   "parent_id": "ManagerA", "split_pct": 50},
        {"agent_id": "AgentY",   "parent_id": "ManagerA", "split_pct": 50}
      ]
    }
  },
  "id": 1
}

2 GATED node gate

Commission Statement Reconciliation art-266-reconcile-commission-statement

Reconciles statement lines: expected = gross_premium × (commission_rate_pct/100) × (split_pct/100). Emits has_discrepancy (bool), total discrepancy amount, per-line results. Gate: if has_discrepancy=true the chain exits (discrepancy must be resolved before amortization). Default (no discrepancy) proceeds to ASC 340-40 amortization.

§21.4 Gate · RFC 6901 Pointer

input: /has_discrepancy · rules: [{op: "eq", value: true, next: "end"}] · default: art-265-amortize-asc606-commissions

MCP Call · reconcile_commission_statement

{
  "jsonrpc": "2.0",
  "method": "tools/call",
  "params": {
    "name": "reconcile_commission_statement",
    "arguments": {
      "statement_lines": [
        {
          "agent_id": "AGT001",
          "gross_premium": 10000,
          "commission_rate_pct": 10,
          "split_pct": 100,
          "stated_commission": 1000
        }
      ],
      "tolerance_pct": 1
    }
  },
  "id": 2
}

3 TERMINAL node

ASC 340-40 Commission Amortization art-265-amortize-asc606-commissions

Computes incremental commission amortization per ASC 340-40. Applies §340-40-25-4 practical expedient (expense immediately) when contract_term_months ≤12. For longer contracts, amortizes over the amortization period with optional renewal cost stacking. Returns apply_expedient, monthly_amortization_amount, total_amortization_periods, impairment check. Final stage.

MCP Call · amortize_asc606_commissions

{
  "jsonrpc": "2.0",
  "method": "tools/call",
  "params": {
    "name": "amortize_asc606_commissions",
    "arguments": {
      "incremental_cost": 12000,
      "contract_term_months": 24,
      "renewal_commensurate": false,
      "renewal_cost": 0,
      "amortization_period_override_months": null,
      "impairment_indicators": []
    }
  },
  "id": 3
}

Commission Integrity and Amortization