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Accounting Best Practices, Fifth Edition by Steven M. Bragg Englewood, Colorado

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Chapter 8: Commissions Best Practices

Commission Calculations

8–1Automatically calculate commissions in the computer system
8–2Calculate final commissions from actual data
8–3Construct a standard commission terms table
8–4Periodically issue a summary of commission rates
8–5Simplify the commission structure

Commission Payments

8–6Include commission payments in payroll payments
8–7Lengthen the interval between commission payments
8–8Only pay commissions from cash received
8–9Periodically audit commissions paid

Commission Systems

8–10Install incentive compensation management software
8–11Post commission payments on the company intranet
8–12Show potential commissions on cash register

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