Overriding Rate Scale Tiers

If a Commission Rate Scales record is linked to the Commission Tiers tab, the inherited tier records can have their ranges and rates overridden by selecting the Override Range or Override Rate options. Selecting these items allows the user to update the otherwise locked range amounts and rate percentage.

1. Select the Override Range option to edit and modify the range amounts.
2. Select the Override Rate option to edit or modify the commission rate percentage or use an absolute amount.
3. The overrides amounts and rates remain unless the Commission Rate Scales record is re-linked to the Commission Agreement's Commission Tier tab. To re-link the rate scale record, select the Clear button and then use the Find button to select the record.

4. Click OK to close the Commission Agreement Detail Tiers record.

   Graduated Rate Scale vs. Highest Tier Achievement Only

   Graduated Rate Scale vs. Highest Tier Achievement Only  Calculating a graduated rate scale commission on $5000.00 using the following commission tiers, results in a $450.00 commission. Tier From To Rate Base Qualified Commission 1 $0.00 $2,000.00 5.0% 2000.00 100.00 2 $2,000.00 $4,000.00 10.0% 2000.00 200.00 3 $4,000.00   15.0% 1000.00 150.00 $450.00 Calculating a commission on the same $5,000.00 using the highest tier achieved, results in a $750.00 commission.  Tier From To Rate Base Qualified Commission 1 $0.00 $2,000.00 5.0%     2 $2,000.00 $4,000.00 10.0%     3 $4,00.00     5000.00 750.00   $750.00  The method used for calculating a commission depends on the business intention of the commission plan.

   
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