Commission Calculations

The CMSC software automatically calculates a weighted commission for each order and quote created. It does this by calculating the total of the order or quote including all the line items and accessories contained in the order or quote. A weighted commission is then calculated by using the different commission rates for each category of item based on the commission values for that category and the total dollar amount for each category of items.

ClimateMaster assigns three different commission rates to items based on the category that the item falls into. The three different commission rates are:

Starting with version Solution Center version 3.3.36, the system is also calculating commissions on tagging and Net Adds. The percentage that is used for tagging and net adds depends upon the items in the quote or order. If the quote or order contains TC items the commission percentage used in the calculation will be that of the TC commission percentage. If the quote or order does not contain TC items the commission percentage associated with All Other Products will be used instead.

The system uses the predefined commission rates assigned by ClimateMaster based on the Transaction and Order type of the order or quote.

The system determines the weighted commission by using a formula that calculates the sub-total net price of the order then, depending upon the percentage of each category of item, multiplies the specified commission rate by the total of the order to determine the weighted commission.

In the following example we will show how the commission is calculated for a particular order/representative combination.

Product Line	Multiplier	Amount of Product in Category (List Price)	Sub-Total Net Price	Commission Percentage	Result (Amount * Commission)
Tranquility Compact Series	.65	$5,070.00	$3,295.50	11%	$362.51
Accessories	.60	$2,922.00	$1,753.20	17%	$4,201.64
All Other Products	.58	$72,442.00	$42,016.36	10%	$298.04
Tagging	1	$14.00	$14.00	Either 11% or 10%	$11.00
Net Adds	1	$100.00	$100.00	Either 11% or 10%	$1.54
Total	.585 (Weighted Multiplier)	$80,434.00	$47,065.06		$4,874.73

1.Adds the totals of all three categories in the List Price column (5,070 + 2,922 + 72,442) = $80,434.00

2.Adds the totals of all three categories in the Sub-Total Net Price column (3,295.50 + 1,753.20 + 42,016.36) = $47,065.06

3.Divides the sub-total net price total by the list price total (47,065.06 / 80,434) = .5851388716214536 or rounded to the nearest three decimal places = .585

The system then calculates the weighted commission value by doing the following.

1.Multiplies the sub-total net value of each category by the value in the commission percentage column which determines the amount in the Result (Amount * Commission) column.

2.Adds the totals of all five categories after the commission rate is applied (362.51 + 4,201.64 + 298.04 + 11.00 + 1.54) = $4,874.73

3.Then the system divides 4,874.73 by 47,065.06 and the resulting value of .1035742863177057 is rounded to the nearest two decimal places which gives us a weighted commission of .10 or 10%

4.Finally, the system multiplies the sub-total net price (47,065.06) times the weighted commission percent of 10% = $4,706.51. This is the amount that will be displayed in the Pricing Summary section of the quote or order form.