Glossary
Commission adjustment
Adjustments made to commissions after they’ve been paid.
Also known as a “commission clawback,” these are adjustments made to new commission checks to account for unforeseen financial changes on deals in previous commission checks. This may happen with discounts, refunds, returns, MSA modifications, shipping and more.
For example, a sales rep earns a commission check in January, but one product is returned in February. A commission adjustment is done to deduct the commission amount from the next commission check.
This is important to companies who pay out sales reps before sales are off the books.
For example, a sales rep earns a commission check in January, but one product is returned in February. A commission adjustment is done to deduct the commission amount from the next commission check.
This is important to companies who pay out sales reps before sales are off the books.