A quota-based schedule for a subsidiary that has child subsidiaries includes the transactions from those child subsidiaries in the quota amount used for commission.
For example, if your company has the following subsidiary hierarchy:
If you establish a quota for the U.S. parent subsidiary and for Wolfe U.K.:
-
Sales made for the U.S., U.K., or Germany subsidiaries are included toward the U.S. quota.
-
The U.K. quota would include only sales made on behalf of the U.K. subsidiary.
Following this example, a rep is assigned a commission plan with a schedule that is associated with the U.S. subsidiary. This schedule pays 10% of all sales exceeding quota.
The rep has a quota of $3000 for this period, and makes the following sales:
|
Transaction |
Subsidiary |
Currency |
Amount |
Rate |
Amount in USD |
|---|---|---|---|---|---|
|
Invoice 1 |
U.S. |
USD |
$1000 |
U.S. to U.S.: 1 |
$1000 |
|
Invoice 2 |
U.K. |
GBP |
£1000 |
U.K. to U.S.: 2 |
$2000 |
|
Invoice 3 |
CAN |
CAD |
$1000 |
CAN to U.S.: .5 |
$500 |
The rep exceeded quota by $500 and receives a commission payout equal to 10% of $500, or $50 USD.
If changes are made to the consolidated exchange rates, the commission