When Should I Mark A Reward As Non-Deductible?

When Should I Mark A Reward As Non-Deductible?


Some plans use strategies where commissions are always re-calculated YTD, and deductions applied based on what has been paid so far YTD. This way, if past data changes (dates or amounts), the re-calculation will catch this, because we'll constantly be re-evaluating what should have been paid YTD. Those types of plans rely on deductions to subtract what has already been paid in previous periods. Each period statement will show deductions from previous periods.



Now, when you add certain types of manual rewards, you may NOT want the amount to be taken into account when calculating the next period. For example, if a rep needs to be awarded $100 for mentoring an intern, you may NOT want this amount to be deducted when re-calculating YTD commissions next period. Indeed, this would result in a negative $100 next period, as Sales Cookie believes you overpaid based on a YTD re-calculation.

To handle those situations, you can mark your reward as non-deductible. It will no longer be counted towards deductions. It will be understood as a one-off payout outside of the YTD re-evaluation.



    • Related Articles

    • What Is The Difference Between Cumulative And Non-Cumulative Tiers?

      This article is only applicable if your commission plan has multiple attainment tiers, each with a different payout. If your plan does NOT have tiers (ex: you pay commissions per-transaction with no required minimum), skip ahead. Consider a sample ...

    • How Can I Calculate a Complicated Per-Transaction Reward (Advanced)?

      Sometimes, you want to calculate per-transaction commission amounts based on complex rules. Do You Need A Per-Transaction Reward Formula? In most cases, it's sufficient to rely to use pre-canned rewards such as "% of Revenue", "% of Profit", or "Cash ...

    • How Can I Calculate a Complicated Global Reward (Advanced)?

      Sometimes, you want to calculate a total (gross, lump sum) commission amount based on complex rules. Do You Need A Global Reward Formula? In most cases, it's sufficient to rely to use pre-canned rewards such as "% of Revenue", "% of Profit", or "Cash ...

    • Recipe - How To Efficiently Setup A New Plan

      This article describes a recipe to efficiently create plans based on common patterns. Those patterns work for 75% of plans. This article is intended to be a compact reference and provide general guidelines. Initialize Plan The goal here is to quickly ...

    • How Do I Set Attainment Levels And Their Thresholds?

      This article explains how to use the web application to set attainment levels and their associated thresholds. For a more general discussion about attainment levels, click here. For general guidance on how to configure attainment levels, click here. ...