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Commision calculate-- who is right ? [Copy link] 中文

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Post time 2012-2-5 12:24:23 |Display all floors
Hi All,

Just a quick one that's baffling me slightly!

We have a commision in place which is based on the total value of stock expiring divided by total purchases for that month. This is paid quarterly and is based on a specific quarterly target.

My partner has based it by getting an average of the percentage each month, e.g. Apr (€14,643 / €508,537) = 2.9%, May (€4,535 / €561,735) = 0.8% Jun (€6,072 / €780,033) = 0.8% and the average is (2.9%+0.8%+0.8%)/3 = 1.49%.

However, as the target is Quarterly and not Monthly, I think it should be based on a total for the quarter, which in this case would be €25,250 / €1,850,305 = 1.36%.

Can anyone throw any light on why the figures are so different? I know it's probably completely obvious but I don't want to point out any issue without knowing all the facts first.

Thanks!
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Post time 2012-2-5 13:27:32 |Display all floors
According to the inforamtion in my opinion the right way of calculating it is as your colleague has done since:

1) it is the "value of the stock divided by total purchase of that month"
2) it will be paid quaterly.

The target can be set at anytime.

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Post time 2012-2-5 21:18:43 |Display all floors
longzhou Post time: 2012-2-5 13:27
According to the inforamtion in my opinion the right way of calculating it is as your colleague has  ...

Thanks for your reply.

I' ll double check again.

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