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
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