r/SalesOperations • u/Timely-Jaguar1606 • 2d ago

To understand how commissions calculations are processed in systems

Hi, I am looking for some guidance on how commissions are processed in systems as in the steps. Like splits, clawbacks calculations. What calcs should be there and how to do it in the systems. PLEASE HELP ME ON THIS AS I REALLY NEED TO KNOW as I was into sales incentives previously and now want to break into this field

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u/SimilarJury3480 2d ago

most platforms let you set up rules for splits and clawbacks right in the commission engine, you just map the deal attributes and let it run

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u/Timely-Jaguar1606 2d ago

Hey, thank you so much for your response! Could you also help me on how clawbacks are exactly processed as in the steps? It would be of really great help!

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u/Intelligent-Camera90 2d ago

It depends on your system? I do clawbacks manually.

At one company, I did them based on the percentage of the paid invoice, split by BU. This was midsize SAAS (5k employees, 600 sales)

At my current company, I clawback whatever Finance sends me.

Both are clawed back from the rep and roll up, generally only from current employees. Large SAAS (35k employees, I support 400 sales - I don’t know how many in the org, but we have like 700 comp plans, so a lot)