How To Calculate The Percentage Of Sales

Table of contents:

How To Calculate The Percentage Of Sales
How To Calculate The Percentage Of Sales

Video: How To Calculate The Percentage Of Sales

Video: How To Calculate The Percentage Of Sales
Video: How to Calculate Percentages: 5 Easy Methods 2024, May
Anonim

When hiring, many managers, in order to motivate work, in addition to the salary, agree with the manager to pay him a percentage of the total amount of transactions. After that, the managers calculate their percentage and take bonus money when the salary is issued.

How to calculate the percentage of sales
How to calculate the percentage of sales

It is necessary

  • - labor agreement (contract) indicating the amount of interest;
  • - memo to the accounting department;
  • - the number of transactions concluded, confirming the corresponding accounts.

Instructions

Step 1

When hiring a sales manager, you need to immediately agree on a remuneration. Typically, managers are assigned a salary and a percentage of the amount of transactions made. However, there is a practice when some managers pay a percentage of profits, that is, of the amount that remains after deducting all expenses spent by the company on an employee. These expenses include office rent, wages, travel expenses, etc. Thus, as a result, the manager can remain practically at zero, being limited only by his own rate. According to the current legislation, employers may or may not pay interest on sales at all, and from the total amount of bonuses they have the right to deduct business expenses, fines and whatever they wish.

Step 2

To save yourself from such troubles, conclude a contract and make sure that it contains a clearly written procedure for calculating your wages. In this case, the contract becomes one of the arguments for collecting unpaid money from the employer from the products you sold.

Step 3

The fairness of the payment of the percentage of sales should be discussed in advance with the head of the company. It should be reasonable and not bring a loss to the company, but you should not be at a loss either. It is advisable that your manager understands that this type of managerial motivation as a percentage of sales should be regarded by them as a fair remuneration, otherwise the manager's productivity will inevitably decrease or he will go to another company. If he does not understand this, save time and nerves by trying to get a job with a more adequate assessment of work.

Step 4

To calculate the percentage of the sale, multiply the percentage given to you by the amount of the sale and divide by 100. As a result, you will receive your bonus to salary, which, however, will be less after tax. After all, bonuses and bonuses are also subject to personal income tax, social security deductions, the Pension Fund, etc. As you can see, in general, the calculation is simple.

Step 5

To calculate your salary at the end of the month, write a memo to the accounting department indicating your sales, invoices paid and shipped. After checking, the accountant will calculate your interest and taxes on this note, and the amount received will be included in the payroll.

Recommended: