Commission calculation

CommunityMember111277
CommunityMember111277
in Modeling

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

 

CommunityMember111277_0-1597251374724.png

Thanks

AB

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Answers

  • JaredDolich
    JaredDolich

    @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
    CommunityMember111277
    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
    JaredDolich

    @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
    CommunityMember111277
    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
    SRoberts

    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
    Ganza

    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.

     

    Test1.PNGTest 2.PNG

     

  • PoojaGupta
    PoojaGupta

    Not sure why no numbers are populating for commission forecast. 

     

    PoojaGupta_0-1647443832077.png

    PoojaGupta_1-1647443854728.png

     

  • bhdidou
    bhdidou
    edited 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.

    image.png


    image.png


    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.

    image.png
    image.png
    image.png

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

    Thank you !

    Boutayeb

  • SRoberts
    SRoberts

    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!

  • sobaid
    sobaid
    edited September 24

    numbers are not matching, they are sligtly off

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