Sales commission calculation
Problem
Sales commissions are often calculated in spreadsheets. Someone pulls sales from the CRM, applies each employee's base rate, multipliers, and targets by hand, and hands the result to payroll. Complicated rules, such as daily commission rates with modified rates on vacation days, make the math slow and error-prone, and an unusual number can go unnoticed until after payout. For the customer this solution was built for, this process took 7 to 10 days every month, which held up payroll and month-end processing.
Solution
The solution connects the CRM to the commission calculation and updates the payroll system. Each employee has a commission schedule that holds their base percentage, multipliers, and monthly targets, and the system calculates commission by month, with daily rates and modified rates on vacation days. Commission calculations are held for approval before they transition to paid, so nothing moves forward without someone signing off, and values that fall outside the norm are flagged so someone can investigate them promptly. One dashboard shows sales against target by month, commissions earned month over month, and commissions pending approval, and users can drill into any record to see how its commission was calculated. The customer cut processing from 7 to 10 days to 2 days, with a 35% reduction in errors in commission payouts.
At a glance
Vertical
Cross Industry
Used By
Sales
Finance
HR
Building Blocks
Custom Applications
Logic Blocks
Integrations
Human-in-the-Loop
Machine Learning Models
Dashboards
Building Blocks
This solution was built using these Nextworld features
Custom Applications
Holds each employee's base percentage, multipliers, targets, and monthly sales, and shows the detail behind every commission calculation.
Logic Blocks
Calculates each month's commission, with daily rates and modified rates for vacation days.
Integrations
Pulls sales from the CRM and updates the payroll system, replacing the manual handoff.
Human-in-the-Loop
Holds each commission calculation for approval before it moves to paid, so nothing moves forward without someone signing off.
Machine Learning Models
Flags commission values that fall outside the norm so they can be investigated promptly.
Dashboards
Shows sales against target by month, commissions earned month over month, and commissions pending approval, with drill-in to any record.
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