Commission calculation

[CommunityMember111277]

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]

@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]

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]

@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]

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