Commission Rate Plan Sample - Paid To Date

Paid to date plans look at the Paid field on the Debtor form to evaluate the commission rate to set. The total paid, including the current payment transaction, is used to calculate the commission rate. This may cause a commission percentage to display erroneously. This is a progressive commission rate plan example. It is possible at the time of posting the transaction, that the amount posted causes Collect! to use multiple levels of your commission rate plan to come to the appropriate rate. Please review the example below to be completely comfortable and confident that the true commission rate percentage is being calculated.

Collect! will display the commission rate percentage of the current level set in the commission rate plan. If your total paid to date is below $2,000.00 then 25% will be set on the Debtor form in the Rate field. If the total paid to date is between $2,000.01 and $5,000.00 the rate will display as 20%, for example. This commission rate plan is used each time you post a transaction that effects the Paid field and is set to calculate a commission rate.

The sample below will show you how Collect! determines the commission rate to set when you have assigned this commission rate plan to an account.

Commission Rate Plan - Paid To Date

The commission rate is automatically set to your first level when entering a new account. (No payments will have been made yet, so the rate is set for the first level.) Then the rate is recalculated and applied to each payment transaction when posting. This commission rate plans evaluates the amount of the payment entered in the To Us or Direct field on the payment transaction. Collect! determines the commission rate percentage to use when you exit the To Us or Direct fields, or when you uncheck the 'Don't calculate commission' check box, or when you select OK on the transaction.

The commission rate is calculated each time a transaction type is posted that requires commission or when modifying an existing transaction. Caution should be taken if you need to modify any amount on previously payments. You may want to make an adjustment for any error or delete all payments posted after the modified transaction.

With this sample:

The first $2,000.00 dollars paid will have commission calculated at 25%.

The next $2,000.01 to $5,000.00 dollars paid will be have commission calculated at 20%.

The next $5,000.01 to $10,000.00 dollars paid will be have commission calculated at 15%.

The next $10,000.01 to $20,000.00 dollars paid will be have commission calculated at 13%.

The next $20,000.01 to $50,000.00 dollars paid will be have commission calculated at 11%.

The next $50,000.01 to $99,999,999.00 dollars paid will be have commission calculated at 10%.

Because the amount paid to date can actually span multiple ranges set in the commission rate plan, sometimes the resulting commission rate percentage can look erroneous. The examples below will help you to understand the commission rate percentage displayed on each transaction.

We list a debtor with $50,000.00 Principal.

Post the first $500.00 payment. You will see the commission rate set to 25% and the calculated commission amount of $125.00. Total paid to date is $500.00 and you are still in the $0.00 to $2,000.00 range at 25%.

Post the next $1,000.00 payment. You will see the commission rate set to 25% and the calculated commission amount of $250.00. Total paid to date is $1,500 and you are still in the $0.00 to $2,000.00 range at 25%.

Post the next $1,000.00 payment. You will see the commission rate set to 22.50% and the calculated commission amount of $225.00. Total paid to date is $2,500.00. This payment has taken us into the next range of $2,000.01 to $5,000.00 at 20%.

Collect! has calculated the portion of $500.00 at 25% for you for $125.00, bringing the total paid to date to $2,000.00. Then the remainder of $500.00 is calculated at 20% for a commission amount of $100.00. This results in a total commission amount of $225.00 which happens to be 22.50% of the $1,000.00 posted.

Post the next $2,000.00 payment and you will see the commission rate set to 20% for a calculated commission amount of $400.00. The total paid to date is $4,500.00. This payment was completely in the range of $2,000.01 and $5,000.00 for a 20% commission rate.

Post the next $2,000.00 payment and you will see the commission rate set to 16.25% and the calculated commission amount of $325.00. Total paid to date is $6,500.00. This payment has taken us into the next range of $5,000.01 to $10,000.00 at 15%. Collect! has calculated the portion of $500.00 at 20% for you for $100.00, bringing the total paid to date to $5,000.00. Then the remaining $1500 is calculated at 15% for a commission amount of $225.00. This results in a total commission amount of $325.00 which happens to be 16.25% of the $2,000.00 posted.

Collect! will continue to use the settings from your commission rate plan to calculate the commission rate to use for any transaction. Experiment with transactions in the Demonstration database to become completely confident with how Collect! calculates commission rates and commission amounts.

With this sample, no minimum or maximum values have been set. If you enter values for the appropriate minimum or maximum values, Collect! will reset the commission amount accordingly when posting a transaction that calculates commissions. If you are going to use minimum and maximum commission amounts, you should view the documentation Commission Rate Plan Sample - Setting Min And Max Values.

See Also

- Commission Rate Plan
- Commission Rate Plan Basics - Introduction/Accessing
- Commission Rate Plan Samples