Accounting Best Practices, Fifth Edition

Implementation Issues for Commissions Best Practices

This section illustrates the relative degree of implementation cost and duration for commission best practices, as displayed in Exhibit 8.1. The level of implementation difficulty in this area is quite polarized because of one major issue—some of the recommended changes require the complete cooperation of the sales manager, who will probably actively resist at least a few of them. Accordingly, the duration of implementation for these best practices is rated as difficult and long, though they are actually quite simple if the agreement of the sales manager can somehow be obtained in advance.

Exhibit 8.1. Summary of Commissions Best Practices

	Best Practice	Cost	Install Time
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 ...