Entering commissions or bonuses in your forecast Follow

For some salaried employees, such as sales reps, you may wish to represent a commission or bonus paid in addition to the base salary.  LivePlan can build commission or bonus payments based on a percentage of your sales.

Base salary and commission should be shown as separate entries. For each employee or group of employees who will be paid a commission or bonus, you will need to create two entries in your forecast: one Personnel entry representing the base salary, and one entry representing the commission/bonus.

Creating the base salary entry

Please see Entering Personnel for instructions on how to create the salary entry. You can create an entry for an individual employee or a group of employees. Many commissioned employees are considered direct labor employees - if you're not sure which option to use for this entry, see What is the difference between direct labor and regular labor?

In the example below, we've forecast a salary for group of five sales reps. The monthly salary and employee-related expenses are now shown in the Personnel table:

commission-sales-reps-base-salary.png

 

Creating the commission entry

 

Once you've added the base salary for the employee or group of employees, you can add their commission or bonuses. To do this you'll add another Personnel item, set it as a Direct Cost and then calculated it based on a percentage of overall sales or a specific revenue stream:

  1. Click the Add Personnel button and give the commission/bonus item a name:
    add_personnel.png
  2. Choose the "Direct Labor" option on the next screen
    direct_labor.png
  3. Choose whether to calculate the commission or bonus off of a specific revenue stream or overall revenue and set it's percentage:
    Screenshot_from_2019-06-17_16-16-26.png

In the example above, we've added a 5% bonus (on overall Revenue) for our Sales Reps and in the Personnel table that will look like this.

bonuses.png

 

More on personnel:

 

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