Sales Commissions Policy

The purpose of this policy is to establish accountability for setting commission rates and to define the point at which commissions are considered earned. This policy applies to all sales personnel eligible to earn commissions on sales.

This policy states that sales commission rates be set by the President in consultation with the Sales Manager; sales commission rates be reviewed every three years; commissions be considered earned on the date a customer is invoiced for a sale or at the time the sale is registered at a point of sale terminal; and should an invoice be classified as bad debt, the commission value previously paid on that sale be reversed and deducted from current commissions payable to the sales person.