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.