SERVICE / 05 — SALES COMPENSATION & COMMISSION CALCULATION

Commission day,
without the arguments.

Sales compensation is the largest variable cost in a tech company and the one most often calculated in a spreadsheet nobody trusts. We design the plan, build it in CaptivateIQ and run the monthly calculation, so reps get a statement they can reproduce and finance gets an accrual it can defend.

§ 01 — WHAT CHANGES

Arguments about facts,
not about rules.

We have designed and run commission plans at three tech companies, first in spreadsheets and then in CaptivateIQ. The pattern is the same every time: once the rules are written down and the data arrives from one system of record, the disputes that remain are about a deal booked in the wrong month, which can be checked, and no longer about how the plan works.

Calculation time
Days to hours
Sources sync, totals reconcile, the run finishes the same morning.
Disputes
A handful a cycle
Raised against a statement line in the tool, almost all about data, not interpretation.
Exposure managed
USD 300–700K a month
Monthly commission exposure at one client, reconciled into board reporting.
Track record
Three companies
Plans designed, calculated and automated, from a first spreadsheet to CaptivateIQ.
§ 02 — SCOPE

Six pieces,
engaged together or alone.

Some companies need the plan rewritten, some need the tool built, some need someone to run commission day so the controller gets the week back. Every piece has an owner, a due date and a definition of done.

01

Plan Design & Modelling

Quotas, rate tiers, accelerators, clawbacks, splits, hierarchies and roll-up targets written as rules a system can calculate. Each plan comes with a worked example every rep can follow and a cost model finance can budget.

02

Commission Data Model

One deal ID from HubSpot or Salesforce through NetSuite invoicing to cash. Quotas and plan membership in a controlled sheet. A reconciliation step that has to pass before any calculation starts.

03

CaptivateIQ Implementation

Plans, effective-dated hierarchies, rate tables, adjustments and statements configured in CaptivateIQ, then two full parallel cycles against the old spreadsheet before the first live payout.

04

Monthly Commission Run

Sync, reconcile, calculate, review the exceptions, publish statements with a fixed dispute window, collect approvals, hand payroll its file. Run by us, or by your team on the checklist we leave behind.

05

Accruals & Board Reporting

Commission accrued in the month the deal is credited, clawbacks as negative adjustments, and the total by team and plan in the board pack with the attainment distribution behind it.

06

Plan Changes & Annual Reset

Mid-year quota changes prorated by rule, territory moves with effective dates, and the new-year plan rolled out with the specification, the model and the statements updated together.

§ 03 — HOW WE ENGAGE

Three formats,
one specification.

Everything starts with the plan written as a one-page specification per plan. It is what we configure from, and it is what a rep sees when a statement is questioned. If a rule is not on that page, nobody is paid on it.

01 · DESIGN SPRINT

Plan specification & cost model

Four to six weeks. Current plans and disputes reviewed, the new plans specified rule by rule, a cost model by attainment scenario, and a communication pack for the sales team.

For plan rewrites and new-year plans
02 · IMPLEMENTATION

CaptivateIQ build & parallel run

Six to ten weeks. Data model, configuration, statements, two parallel cycles against the old calculation, every difference explained, then go-live with your team trained on the run.

For teams buying or stuck in the tool
03 · MONTHLY RUN

Commission operations

We run commission day on a fixed calendar: reconciliation, calculation, statements, disputes, approvals, the payroll file and the accrual journal, with the numbers reported into the board pack.

For controllers who want the week back
§ — WHO THIS IS FOR

Three situations
where it fits.

SaaS, marketplace and other tech companies with a sales team of ten or more, more than one plan, and a finance team that would rather not spend the first week of every month on commissions.

01 · THE SPREADSHEET
Commissions still calculated in a spreadsheet the controller inherited
It worked at four reps and one plan. At ten reps, two plans and a manager paid on team attainment, it is a week of work and a set of exceptions held in one person’s head.
02 · THE FIRST ROLL-UPS
Sales leaders paid on team numbers, splits and clawbacks entering the plan
The moment hierarchies, effective dates and negative adjustments appear, the calculation needs rules and a tool, not another tab.
03 · THE TOOL WITHOUT THE PLAN
Companies that bought CaptivateIQ and are still paying from the old file
The software is fine. What is missing is the specification, the deal ID discipline and the parallel run that gets the sales team to trust the statements.
§ — FAQ

Four questions
we hear first.

If yours is not here, book a 30-minute intro call and bring the current plan document, if there is one.

Below ten reps with one plan and no roll-ups, a well-built spreadsheet with a written specification is usually enough, and we will build that. Managers paid on team attainment, split deals and clawbacks are the point where a tool costs less than the disputes. We implement CaptivateIQ because it is what we know from running it monthly; the specification and data model we build work in any commission system.

Paying on bookings rewards closing but exposes the company to deals that never pay; paying on cash protects the company but delays the rep by 30 to 90 days. Most of our plans pay on invoicing with a clawback for non-payment after a defined period, which is straightforward to calculate once the CRM deal and the ERP invoice share one ID.

Yes, with effective dates. Quota changes are prorated by a written rule, hierarchy moves take effect on a date both managers can see, and the old and new rules run side by side for the transition period. What we do not do is recalculate closed periods silently: every adjustment appears as its own statement line.

Finance owns the calculation and the payout, sales operations owns CRM data quality and the hierarchy, sales leadership owns plan design and approvals. We set that split up in the first engagement. If you want us to keep running commission day, that is the monthly format; if not, your controller takes over with the checklist and the parallel-run evidence.

Bring us your
commission spreadsheet. We have seen most versions of it.

Talk about your commission plan Read the setup guide