Commission Payout for Accounting & Finance
Calculates, validates, and disburses sales commissions based on closed deals and the applicable commission plan.
Built with ASIC regulatory requirements, AML/CTF compliance, Tax Practitioners Board obligations, and APES standards in mind.
Workflow Stages
Deal Verification
Review all deals closed during the commission period to confirm they are eligible for commission.
Inputs
- Closed deal report from CRM
- Commission eligibility criteria
- Contract execution confirmations
Outputs
- Verified deal list
- Ineligible deal exceptions noted
- Revenue attribution by sales representative
Commission Calculation
Apply the commission plan rules to each verified deal to calculate individual payouts.
Inputs
- Verified deal list
- Commission plan working paper
- Split-credit rules if applicable
Outputs
- Commission calculation spreadsheet
- Individual payout amounts
- Calculation methodology notes
Manager Review
Sales managers review commission calculations for their team members to catch errors or disputes.
Inputs
- Commission calculation spreadsheet
- Deal details for verification
- Previous period comparison data
Outputs
- Manager approval or adjustment requests
- Dispute list if any
- Signed review confirmation
Decision Points
- • Are there disputes that need resolution?
- • Do any calculations require adjustment?
Finance Approval
Finance leadership approves the total commission payout for the period.
Inputs
- Manager-approved commission sheet
- Budget allocation for commissions
- Period comparison analysis
Outputs
- Finance approval
- Authorized payout schedule
- Budget impact recorded
Payout Processing
Process the commission payments through payroll or accounts payable.
Inputs
- Authorized payout schedule
- Employee banking details
- Tax withholding tables
Outputs
- Commission payments processed
- Pay stubs generated
- Payroll ledger updated
Statement Distribution
Provide each sales representative with a detailed commission statement for the period.
Inputs
- Processed payout records
- Commission statement template
- Distribution list
Outputs
- Individual commission statements
- Statements delivered to each representative
- Period archived in records
Frequently Asked Questions
What happens if a commissioned deal is later cancelled?
Commissions on cancelled deals are clawed back in the next commission period, with the sales representative notified in advance.
How are split commissions handled?
Split commissions follow the credit allocation rules defined in the commission plan, typically agreed upon by both representatives and their managers at deal creation.
Can commission disputes be raised after payout?
Yes, disputes can be raised within 30 days of statement distribution. They are investigated by sales operations and finance and adjusted in a subsequent period if warranted.
Ready to implement this workflow in your business?
Our team can implement this workflow into your business operations with custom tools and training.