Commission Statement: What It Should Include, With an Example
What a commission statement is, a worked example with a split, a clawback and a draw, what every statement should include, and the common problems that cause disputes.
Quick Answer
A commission statement is the record a rep receives each pay period showing every sale they were paid on, how each commission was calculated, any adjustments such as splits, clawbacks or draws, and the total due. A good statement lets the rep check every number without asking anyone, which is the single best way to prevent commission disputes.
Commission Statement Example
An illustrative monthly statement for a rep on 8% of contract value with a $1,200 monthly draw:
| Deal | Date | Basis | Rate | Commission |
|---|---|---|---|---|
| Johnson residence | Sep 3 | $18,000 contract | 8% | $1,440.00 |
| Rivera residence | Sep 11 | $22,500 contract | 8% | $1,800.00 |
| Patel residence (split 50%) | Sep 19 | $15,000 contract | 8% x 50% | $600.00 |
| Lee residence: cancelled | Sep 24 | Clawback of Aug commission | -$960.00 | |
| Gross commission | $2,880.00 | |||
| Less draw already paid | -$1,200.00 | |||
| Commission due this period | $1,680.00 | |||
Check the math: $1,440 + $1,800 + $600 - $960 = $2,880 gross commission, less the $1,200 draw already paid, leaves $1,680 due.
What a Commission Statement Should Include
- Rep and period: name, ID, commission period and pay date.
- Every qualifying sale: customer or deal ID, date, and the amount commission is based on.
- Rate and calculation for each line, including tier reached and whether tiers are marginal or retroactive.
- Splits and overrides: the share applied and who else was credited.
- Adjustments: clawbacks with the original sale they relate to, chargebacks, SPIFFs and bonuses.
- Draws: amount advanced, amount recovered, and any running balance.
- Totals: gross commission, deductions and net amount paid.
Common Statement Problems
- Totals with no line-by-line detail.
- Clawbacks that do not identify the original sale. See how clawbacks should work.
- Draw balances that are not shown. See draw against commission.
- Statements that arrive after pay day, or only on request.
Sequifi produces a statement for every rep every period, with each commission traced to the deal and the plan rule that applied, and reps can see it in the app before pay day. See commission software or book a demo.
Frequently Asked Questions
What is a commission statement?
A record for a pay period that lists each sale a rep was paid on, how each commission was calculated, any adjustments, and the total paid.
How often should reps get a commission statement?
Every time commission is paid, whether that is weekly, biweekly or monthly, and ideally before the money arrives.
What should I do if my commission statement looks wrong?
Compare each line with your own sales records, then raise the specific sale and amount through the dispute process in your commission agreement.
Does a commission statement have to show clawbacks?
It should. Each clawback should identify the original sale, the reason and the amount, so the rep can verify it.
Is a commission statement the same as a pay stub?
No. A pay stub shows gross pay, taxes and deductions. A commission statement shows how the commission part of that pay was calculated, sale by sale.
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