When you create a rate table, by default, the commissions will be calculated multiplying the credit amount by the rate of the corresponding tier. But, sometimes, to motivate sales representatives, organizations decide to Apply the Highest Rate once a tier is achieved.
Let's take the following table as an example, and let's assume there is a quota of $1,000,000 (100%).
Let's supposed the following amounts:
| Month | Credit Amount | Balance | Quota Attainment |
| January | $250,000 | $250,000 | 25% |
| February | $350,000 | $600,000 | 60% |
| March | $200,000 | $800,000 | 80% |
So, the commission will be the following:
| Month | Mathematical Operation | Commission |
| January | $250,000 * 1% | $2,500 |
| February | $250,000 * 1% | $2,500 |
| February | $100,000 * 3% | $3,000 |
| March | $200,000 |
$6,000 |
This is the configuration that a payment table has by default. But, you can change this by going to the payment template>click on Settings> Click on Apply Highest Rate>Click Save:
Applying the Highest Rate will apply the highest rate achieved to all prior deals. The deals included in this calculation includes all deals in the attainment period you selected when mapping. For example, if your attainment window is Quarterly, the highest rate tier achieved within the quarter will be applied to all deals sold in that quarter.
The payout for the deals that achieved a new rate will be paid out at the next payment frequency.
Continuing with the previous example, now the commission calculation will be multiplied by the highest rate achieved to all prior deals, so the credit amounts for January and February will be multiplied by 3%, but, since 1% has been paid, they will only receive the remaining 2%. So, the commission will be as follows:
| Month | Mathematical Operation | Commission |
| January | $250,000 * 1% | $2,500 |
| January | $250,000 * 2% | $5,000 |
| February | $250,000 * 1% | $2,500 |
| February | $250,000 * 2% | $5,000 |
| February | $100,000 * 3% | $3,000 |
| March | $200,000 |
$6,000 |
Results
When you go to the results tab, you will see the earnings credit will have a value only for the deals of that period, but the deals that now qualifies for the extra rate because the rep has achieved a highest rate will have a zero. This is for easier troubleshooting when you download the results in a spreadsheet format so you can add all the column and find what's the total amount for earnings credit for that period.
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