Section: Accounting

Subject: Sales Commission Report, Payroll

Approved by: Elizabeth Duggan

Effective Date: 27 April 1999

Last Reviewed Date: 27 April 1999

Policy Owner

Policy #

The Sales Commission Report is a payroll form used for calculating monthly sales commission for Sales Inspectors. All Service Centers are to forward to the Corporate Office in the month-end closing package a completed Sales Commission Report for each Sales Inspector. 

The procedures for completing this form are as follows. Each line number of these procedures corresponds to a line number on the Sales Commission Report (page 6 of this policy).

1. Pest Prevention Sales Commission / Residential & Commercial (Started & Collected)
   • New Business – Enter the dollar amount of Pest Prevention sales in Total Sales Amount. This information is found on the Pest/Lawn Commission Report by Sales Inspector (Custom Menu #1, Report #21; see example on page 7 of this policy). Multiply this amount times .15 (15%) giving the Commission Amount.
   • New Business (With Lead From Technician) – Enter the dollar amount of Pest Prevention sales (where the lead was obtained from another commissionable employee) in Total Sales Amount. Multiply this amount times .125 (12.5%) giving the Commission Amount.
   • Lost Business (Chargebacks) – Enter the dollar amount of lost residential pest prevention business from the Lost Business Log. Chargebacks are based on the annual contract amount less customer payments for accounts cancelled during the first year. Multiply this amount times .15 (15%) giving the amount to be charged back.
   • Total Pest Prevention Sales Commission – For both Total Sales Amount and Commission Amount columns, add lines A plus B and subtract C giving the net sales and commission amounts for Pest Prevention.
2. Lawn, Tree & Shrub Sales Commission / Residential & Commercial (Started & Collected)
   • New Business – Enter the dollar amount of Lawn, Tree & Shrub sales in Total Sales Amount. This information is found on the Pest/Lawn Commission Report by Sales Inspector (Custom Menu #1, Report #21; see example on page 7 of this policy). Multiply this amount times .135 (13.5%) giving the Commission Amount.
   • New Business (With Lead From Technician) – Enter the dollar amount of Lawn, Tree & Shrub sales (where the lead was obtained from another commissionable employee) in Total Sales Amount. Multiply this amount times .11 (11.0%) giving the Commission Amount.
   • Lost Business (Chargebacks) – Enter the dollar amount of lost Lawn, Tree & Shrub business from the Lost Business Log. Chargebacks are based on the annual contract amount less customer payments for accounts cancelled during the first year. Multiply this amount times .135 (13.5%) giving the amount to be charged back.
   • Total Lawn, Tree & Shrub Sales Commission – For both Total Sales Amount and Commission Amount columns, add line A plus B and subtract C giving the net sales and commission amounts for Lawn, Tree & Shrub Care.
3. Termite Sales Commission (Completed & Collected)
   • Baiting ($7.00 Per Linear Ft And Over) – Enter the dollar amount of Sentricon sales sold at greater than or equal to $7.00 per linear foot. This information is found on the Termite Commission Report by Sales Inspector (Custom Menu #1, Report #22; see example on page 8 of this policy. Multiply this amount times .125 (12.5%) giving the Commission amount.
   • Baiting ($6.00 to $6.99 Per Linear Ft) – Enter the dollar amount of Sentricon sales sold between $6.00 and $6.99 per linear foot. This information is found on the Termite Commission Report by Sales Inspector (Custom Menu #1, Report #22; see example on page 8 of this policy). Multiply this amount times .1 (10.0%) giving the Commission Amount.
   • Baiting ($4.50 to $5.99 Per Linear Ft – EPT or Special Programs Only) – Enter the dollar amount of Sentricon sales sold to existing customers as conversions under the Extended Protection Treatment Program (or other program authorized by the President). This information is found on the Termite Commission Report by Sales Inspector (Custom Menu #1, Report #22; see example on page 8 of this policy). Multiply this amount times .05 (5%) giving the Commission Amount.
   • Subterranean / WDO (1145) Inspection – Enter the dollar amount of Subterranean Termite sales and WDO (1145/Real Estate) Inspections completed and collected. This information is found on the Termite Commission Report by Sales Inspector (Custom Menu #1, Report #22; see example on page 8 of this policy). Sales generated from technician leads should be deducted from the total sales amount and entered in line 3E. Multiply the remaining sales amount times .125 (12.5%) giving the Commission Amount.
   • Subterranean (With Lead From Technician) – Enter the dollar amount of Subterranean Termite sales (where the lead was obtained from another commissionable employee). Multiply this amount times .1 (10.0%) giving the Commission Amount.
   • Fumigation – Enter the dollar amount of Fumigation sales completed and collected. This information is found on the Termite Commission Report by Sales Inspector (Custom Menu #1, Report #22; ;see example on page 8 of this policy). Multiply this amount times .125 (12.5%) giving the Commission Amount.
   • Pretreat – Enter the dollar amount of Pretreat sales completed and collected. This information is found on the Termite Commission Report by Sales Inspector (Custom Menu #1, Report #22; see example on page 8 of this policy). Multiply this amount times .125 (12.5%) giving the Commission Amount.
   • Other Sales (Specify Type) – Enter the dollar amount of any other termite sales completed and collected that do not apply in items A through G. Multiply this amount by the appropriate percentage giving the Commission Amount.
   • Total Termite Sales Commission – Enter the sum of 3A through 3H.
4. Termite Reinspection Commission
   • Conventional Reinspection Production – Enter the dollar amount of reinspection production from the Reinspection by Employee Report (Custom Menu #1, Report #38, example on page 9 of this policy). Multiply this amount times .05 (5%) giving the Commission Amount.
   • New Conventional Graphs Drawn – Enter the number of accounts for which this employee created new graphs. This information is found on the Reinspections by Employee Report (Custom Menu #1, Report #38, example on page 9 of this policy). Multiply this number by $2.50 giving the commission amount.
   • Conventional Reinspection Collections – Enter the dollar amount of reinspection collections from the Reinspections by Employee Report (Custom Menu #1, Report #38, example on page 9 of this policy). Multiply this amount times .03 (3%) giving the Commission Amount. Reinspections by Employee Report (Custom Menu #1, Report #38, example on page 9 of this policy). Multiply this amount times .03 (3%) giving the Commission Amount.
   • Baiting Reinspection Production – Enter the dollar amount of baiting reinspection production from the Baiting Reinspections by Employee Report (Custom Menu #2, Report #24, example on page 10 of this policy). Multiply this amount times .015 (1.5%) giving the Commission Amount.
   • Baiting Reinspection Collections – Enter the dollar amount of baiting reinspection collections from the Baiting Reinspections by Employee Report (Custom Menu #2, Report #24, example on page 10 of this policy). Multiply this amount times .01 (1%) giving the Commission Amount.
5. Service Commission (Specify Type) – Enter any service commission earned by this Sales Inspector for this month.
6. Other Earnings
   • Vacation, Holiday & Sick Pay – Enter the number of days and dates of Vacation, Holiday and Sick pay taken by this employee. Multiply the number of days in each category times $50 per day to calculate the Commission Amount.
   • Training Pay – Enter the number of days and the dates of any training meetings which this employee attended. Multiply the number of days times $50 per day to calculate the Commission Amount.
   • Professional Development Program – Enter the additional amount earned by this Sales Inspector under the Company’s Professional Development Program.
   • Total Other Earnings – Add lines 6A through 6E.
7. Total Month’s Earnings – Enter the total commission earned by this Sales Inspector for this month calculated as: 1D + 2D + 3I + 4F + 5 +6F
8. Less Monthly Draw – Enter the monthly draw for this employee as per the Employee Status Form.
9. Less Prior Month Deficit – Enter (if applicable) the deficit carried forward from the previous month. This deficit is found on the previous month’s Sales Commission Report for this employee.
10. Net Commission Due (Or Current Deficit) – Subtract line 7 minus lines 8 and 9 to calculate the Net Commission Due this employee this month or, if negative, the Current Deficit to be carried forward to the next month. 

Downloads #