Accounting Best Practices, Fifth Edition

Chapter 8: Commissions Best Practices

Commission Calculations

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

Commission Payments

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

Commission Systems

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