How are sales commissions calculated?

Determine Commission Rate Identify the percentage or fixed amount to be paid per sale.

Track Sales Record the total sales made by the salesperson or team.

Calculate Gross Sales Value Compute the total value of the salesperson's eligible sales.

Apply the Commission Rate Multiply the gross sales value by the commission rate

Factor in Deductions or Adjustments Adjust for returns, discounts, or other conditions affecting payout

Final Commission Payment Issue the final calculated commission to the salesperson