Sliding scale based on "Split: company's portion"

 

When is Split: company's portion used?

Applying Split: company's portion to the agent's split

Split: company's portion and pre-/post- split deductions

Calculation example

Sliding scale based on "Split: company's portion" is used when you need to track contribution to the office without subtracting deductions.

This sliding scale base can be used for Agent's split, pre- and post-split deductions. 

Applying this type of base to the agent's split allows pro-rating the earnings mid-transaction. This means the agent will move to the next CAP mid-transaction. It is important to set up the commission plan's split percentage according to the Remaining Balance.

 

Example:

Historical contribution: $13 000

The remaining balance (current transaction commission basis): $62 000       

The tiers for the current transaction plan are as follows:       

mceclip0.png

Explanation: prior to this transaction, the agent has paid $13 000 to the company year to date. The commission basis for the current transaction is $62 000. Therefore he will move to the $15 000 tier by paying $2 000 to the company getting the 80% split of the $10 000.  After this agent will have $52 000 of the remaining balance. In order to reach the next tier the $5 000 needs to be paid to the company. The agent's split is now 90% which is equal to $45 000. The agent has now reached his final CAP with the remaining balance of $2000 which is added to his net amount for the current transaction. This agent will now get a 100% commission split for all further transactions of the year that are associated with this commission plan.

   

    agent company remaining balance
80%   $8 000               $2 000              $52 000
90%   $45 000 $5 000  $2 000 
100%   $2 000 $0 $0
    

  $55 000

$7 000  

 

 

 

If using Split: company's portion for the pre- and post-split deductions the amounts do not prorate mid-transaction.  The pre-split calculations are based on the amount accrued prior to the current transaction. The post-split deduction will take into account the amount earned in the current transaction and calculate accordingly.

 

mceclip4.png

 

 

 

 

 

Was this article helpful?
0 out of 0 found this helpful

Have more questions? Submit a request