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Blog · Territory, capacity and quota planning

Crediting on ten invoice lines: the whole arithmetic on one page

The complete sales crediting calculation on ten invoice lines, small enough to check by hand: the dated assignment in force on each invoice date, the two lines with splits, the overlay specialist's credit in its own column, credited revenue per rep, the line whose splits sum to 1.4 and the line with no assignment on its date, the exception list, and the identity that split credit sums to the ledger while overlay credit is reported beside it, so a reader can reproduce every figure and then run it on their own exports.

The short answerTen invoice lines totalling $200,000. Each line is credited to the rep assigned to its account on its invoice date, from the dated assignment file; two lines carry splits agreed before close; one specialist has overlay credit on three lines in a separate column. Two exceptions appear: a line whose splits sum to 1.4, and a line on an account that moved three days after the invoice with no assignment ending. After the exceptions are fixed, split credit across reps sums to $200,000 exactly, and overlay credit of $45,000 sits beside it, never added. Every number can be reproduced by hand.

Crediting is an assignment lookup per line and a sum per rep, and on ten lines the whole thing can be checked by hand, including the two ways it usually breaks. This page works it: the dated assignments, the splits, the overlay, the exceptions and the identity.

The assignment file, dated

Account Rep From To
1 R-1 1 Jan
2 R-2 1 Jan
3 R-1 1 Jan 9 Sep
3 R-2 10 Sep
4 R-3 1 Jan
5 R-3 1 Jan 5 Sep
5 R-1 8 Sep

Account 5's old assignment ends 5 September and the new one starts 8 September: two days with no owner.

Splits and overlays

Account Split Agreed
2 R-2 60%, R-3 40% Before close
4 R-3 70%, R-1 70% Before close; sums to 1.4

Overlay: specialist S-1 at 100 percent on lines for accounts 1 and 2.

The ten lines

Line Date Account Value Assignment on date Split credit Overlay S-1
1 2 Sep 1 $30,000 R-1 R-1 $30,000 $30,000
2 3 Sep 2 $15,000 R-2, split R-2 $9,000; R-3 $6,000 $15,000
3 4 Sep 4 $20,000 R-3, split 1.4 Exception
4 5 Sep 1 $10,000 R-1 R-1 $10,000
5 6 Sep 5 $25,000 None on date Exception
6 8 Sep 3 $18,000 R-1 R-1 $18,000
7 9 Sep 4 $12,000 R-3, split 1.4 Exception
8 11 Sep 2 $22,000 R-2, split R-2 $13,200; R-3 $8,800
9 14 Sep 3 $28,000 R-2 R-2 $28,000
10 15 Sep 5 $20,000 R-1 R-1 $20,000
Total $200,000 $45,000

The exception list

Line Check Value Fix Owner
3, 7 Splits sum to 1.4 $32,000 Set account 4's split to R-3 70%, R-1 30% Sales ops, both reps
5 No assignment on 6 Sep $25,000 End R-3's row on 7 Sep, or start R-1's on 6 Sep; the move record decides Sales ops

After the fixes

Account 4 split corrected to 70/30; account 5's move record says R-1 from 6 September.

Rep Split credit
R-1 30,000 + 10,000 + 18,000 + 20,000 + 25,000 (line 5) + 6,000 (line 3, 30%) + 3,600 (line 7, 30%) = $112,600
R-2 9,000 + 13,200 + 28,000 = $50,200
R-3 6,000 + 8,800 + 14,000 (line 3, 70%) + 8,400 (line 7, 70%) = $37,200
Total $200,000

Overlay, S-1: $45,000, beside the table.

The identity

Σ split credit = 112,600 + 50,200 + 37,200 = $200,000 = ledger Σ split shares per line = 1 on every line every line has exactly one assignment or a split on its date overlay $45,000 reported, not added

Where it goes wrong, even at ten

Overlay added. Credited revenue $245,000 on a $200,000 ledger.

Splits accepted at 1.4. R-3 and R-1 both paid on $32,000 in full; the total reads $212,800.

Undated assignments. Line 6 goes to R-2 because R-2 holds account 3 in December.

Exceptions after the run. Two clawbacks and two arguments.

From ten to ten thousand

The same lookup per line against the dated file, the same identity per period. Covirage runs it on the ledger, the assignments and the splits before every commission run. The crediting rules guide covers the rules, and the commission checks guide covers the checks the exceptions come from.

Questions people ask

Why is overlay in a separate column?

Because adding it makes credited revenue $245,000 on a ledger of $200,000, and every rep's attainment is inflated by the same specialist. The overlay column can total whatever the plan says; the identity holds on the split column alone.

What happens to the two exceptions before the run?

They are listed with an owner and a deadline. The 1.4 split is corrected to shares that sum to one, with both reps told. The missing assignment gets an end date on the old rep's row. Unresolved at the deadline, the lines are excluded from the run and paid next period.

How is a mid-period move credited?

By date. Account 3 moved from R-1 to R-2 on 10 September; line 6 on 8 September is R-1's, line 9 on 14 September is R-2's. Neither rep argues, because the assignment file has the date.