Rohan sells tiles. His plan, Tiles sales, pays on money collected before GST, in steps: 2% up to his target, 3% from 100% to 120%, and 4% above. Cross-sell counts 10% to his target and pays 1%. Credit notes take commission back. His September target is ₹10,00,000.
The month, line by line
| Line | Counted | Running total | Rate | Commission |
|---|---|---|---|---|
| Received against INV-0371, 4 Sep | ₹2,40,000 | ₹2,40,000 | 2% | ₹4,800 |
| Received against INV-0374, 9 Sep | ₹3,10,000 | ₹5,50,000 | 2% | ₹6,200 |
| Received against INV-0380, 18 Sep | ₹4,50,000 | ₹10,00,000 | 2% | ₹9,000 |
| Received against INV-0386, 26 Sep | ₹1,80,000 | ₹11,80,000 | 3%, above target | ₹5,400 |
| Cross-sell, 29 Sep: a kitchen deal opened from his, ₹2,00,000 collected | ₹20,000 | ₹12,00,000 | 1% of ₹2,00,000 | ₹2,000 |
| Credit note CN-0019 against INV-0374, 30 Sep | -₹20,000 | ₹11,80,000 | 2% | -₹400 |
The total is ₹27,000. He reached ₹11,80,000 of ₹10,00,000, or 118%.
Why each line is what it is
- The first three payments bring him exactly to his target, all at 2%.
- The fourth is entirely above 100%, so all of it earns 3%.
- The kitchen team collected ₹2,00,000 on a deal opened from his tiles deal. 10% of it, ₹20,000, counts to his target; 1% of the whole, ₹2,000, is paid to him. The kitchen salesperson keeps all of their own commission.
- The credit note against INV-0374 takes ₹20,000 off his count and ₹400 off his commission, at his plan’s first rate of 2%.
During the month
On 20 September, My target showed ₹10,00,000 of ₹10,00,000 and a 100% bar, ahead of the even-pace line at 67%. The commission card said ₹20,000 earned so far, and that ₹2,00,000 more would move every rupee after that from 3% to 4%.
Approval and payroll
On 1 October the statement was worked out by itself, and again each night until the 7th. On 8 October the sales manager opened it, read the red credit note line, and pressed Approve ₹27,000. October’s payroll run added Commission of ₹27,000 to his gross, worked his TDS out on the new gross, and marked the statement “Paid in October 2026 payroll”.
Every invoice, payment and credit note above opens from the statement, so if Rohan had questioned the ₹400, the answer was one click away.
Two what-ifs
If the credit note had been issued on 2 October instead, September would have come to ₹27,400 and October’s statement would have started with ₹400 taken back. September, once approved, would not have changed.
If no target had been set for September, every line would have earned the first rate: ₹23,600 on his own payments at 2%, ₹2,000 on the cross-sell, less ₹400, so ₹25,200. Setting targets before the month starts is what makes the steps pay.
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