I need to create a commission tracking spread sheet. Our commission structure is a percentage of gross profits over 30%. My sales persons receive 1/2% on the sale if the GP is calculated at over 30%. That part of the formula is easy. But there is a second half that's calculated when the project ends based on how the project actually fares. If it closes at 30% then the sales person has already been bonused and nothing more needs to happen. If it's under 30%, his bonus needs to be paid back. However, if the job finishes at 35% or 39%, more commissions are paid. Instead of this "step" method, I would like to switch to an structure that increases with each percentage point. Below is the structure I am using now:
½% on all sales. Must have minimum bid Gross Profit of 30% or approval from supervisor to submit bid with a forecast of less than 30% GP.
When the job closes out and final payment made, Ray will receive the following bonus based on the profit above the 30% minimum.
½% additional bonus on jobs with a profit margin above 35.0%
½% cumulative additional bonus on jobs with profit above 39.0%
All sales above $1,000,000 during year one will have an additional ½% sales bonus awarded at contract signing. All estimates must be approved by the Construction Manager.
All jobs with less than 30% GP or less than the forecast GP if estimate is put in at less than 30% will have a claw back of ½% on the monthly commission checks.
Estimated Actual Job Name Date of Sale Contract Amount Estimated Cost Estimated Gross Profit Estimated GP % Estimated Bonus (.5%) Date Paid Final Contract Amount after change orders Actual Cost Actual Gross Profit Actual GP % Bonus for 30% (already paid) Bonus for 35% Bonus for 39% Paid to Date Total Bonus Final Bonus Date Paid Lakeshore Apartments 12/10/11 $57,350 $39,513 $17,837 31.1% $286.75 01/01/12 $65,350 $42,000 $23,350 35.7% $326.75 $326.75 $0 $286.75 $653.50 $366.75 07/01/12
As you can see from this table, my employee received an addition .5% for closing the job at over 35% GP. But he got nothing for anything OVER that 35%. If this job closed at 38.9% he would still get nothing. I need to calculate a gradual increase from 1/2% bonus at 30% GP up to an as of yet undetermined about at say 100% GP.
The basic formula I am using now is this: =IF(F8>30%, (C8*0.005), 0)
Is all of this about clear as mud?
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