Commission calculation

CommunityMember111277 · August 2020

Hi,

Can anyone tell me whether the below calculation is correct or not? If yes, then can someone please clarify why the quarterly balances are different

Thanks

AB

JaredDolich · August 2020

@CommunityMember111277

Not quite. You have to apportion the quarters differently. Make sure you are very careful to calculate the number of days in each month and use that to determine what percentage to assign to the commission (from SYS01)

CommunityMember111277 · August 2020

Hi Jared,

Can you help me in understanding what does quarters apportionment means?

For example - lets say I have a target of 1200 for a year.
Commission - 10%
So, commission for the entire year will be 120 (10% of 1200), which needs to get spread evenly for every quarter but different for every month depending on the number of days.
Q1 - 30, Q2 - 30, Q3 - 30 & Q4 - 30
Under Q1 - Jan (31 days), Feb (29 days) Mar(31 days)
Jan - 31/91 x 30
Feb - 29/91 x 30
Mar - 31/91 x 30

Is my understanding correct or am I missing something?

Thanks
AB

JaredDolich · August 2020

@CommunityMember111277

Close. I'm not sure why you need that 30. It's just days in month / days in quarter. That should do it! The quarterly apportionment just means "how much should this month get of the quarter"

CommunityMember111277 · August 2020

Hi Jared,

I have taken the 30 as a quarterly base to calculate the monthly figures. If 120 is my total commission then quarterly it comes around 30 (120/4). Then calculate the monthly figures based on the quarterly base -
Jan - 31/91 x 30 > 10.22
Feb - 29/91 x 30 > 9.56
Mar - 31/91 x 30 > 10.22
Apr - 30/91 x 30 > 9.89
May - 31/91 x 30 > 10.22
Jun - 30/91 x 30 > 9.89
Jul - 31/92 x 30 > 10.11
Aug - 31/92 x 30 > 10.11
Sep - 30/92 x 30 > 9.78
Oct - 31/92 x 30 > 10.11
Nov - 29/92 x 30 > 9.78
Dec - 31/92 x 30 > 10.11
Total > 366 days > 120

My monthly figures might vary from quarters to quarters but my quarterly figures are fixed I suppose.
Is my assessment wrong?

Thanks
AB

SRoberts · January 2021

I did just complete L3 and I can confirm that the numbers in that screenshot are correct. I was having trouble as well, so I very carefully went back through the instructions starting in sprint 1 and compared against the calculations in my model. There was a minor (yet major) detail that was clearly described now that I get it, but I overlooked it initially. If you are having trouble here I recommend stepping back, taking a break, then running through the build specifications and user stories one-by-one from the very beginning.

Ganza · September 2021

Hi,

Could you please give me help on how to calculate the commission forecast?

use story 3.3 [I need the ability to view and export the calculated monthly commission forecast for each sales representative based on their total quarterly Final Account Sales Targets, commission rate, and attainment percentage as determined by the tenure and position.]

As I calculated final account sales target is one year period, however, based on the user story we should use a Quarterly final account sales Target. There are data for override sales target we imported were only FY20 [Year Period].

The way I calculated Commission forecast.

I took that final account sales targets * commissions * attainment then after I distributed that total by multiplying quarter Apportionment. Kindly find the screen sheet below.

Test 2.PNG

PoojaGupta · March 2022

Not sure why no numbers are populating for commission forecast.

bhdidou · February 2023

Hi dear Community,

To calculate the Quarterly commission, I used at first a proportionate value dependent on the number of days of each quarter in the year. I didn't get the right result.

Then I followed @SRoberts recommendation. I went back and reviewed the user stories and the build specifications starting from Sprint 1. So I changed the basis of the calculations and I used the percentage of the quarterly PY Sales Revenue for all accounts assigned to the Sales Rep. I get a better result but not the exact one.

Any hint from @Arnab116 or any other community member is welcome.

Thank you !

Boutayeb

SRoberts · February 2023

Glad you're getting close! It's been a while since I went through the course, but I do remember that I got really close but not spot on too, so I went back through every little detail from the very beginning once more, and realized I'd missed one super small detail early on that impacted the later calculations. Keep at it and good luck!