Aqid ERPHow a sales commission is worked out
A commission is a share of what was sold: the sales figure × the rate ÷ 100. With a base salary, the month's pay is the base plus the commission. The calculator takes the sales for the period, the rate, and an optional base, and shows the commission and the total.
What counts as "sales" is the contract's choice: invoiced sales, sales collected, or sales net of returns and discounts. The arithmetic is the same; the figure that goes in is not, and a dispute over commission is nearly always a dispute over which figure was agreed.
A worked example
A salesperson on a base of SAR 4,000 earns 2.5% on sales of SAR 100,000 in the month.
| Commission: 100,000 × 2.5% | 2,500.00 |
|---|---|
| Base salary | 4,000.00 |
| Pay for the month | 6,500.00 |
Commission in the books
Commission is a payroll cost of the period in which the sale that earned it was made, not of the month it was paid. It is subject to GOSI only if the contract makes it part of the wage; a variable commission paid on top of the basic and housing usually is not in the contribution base. Aqid ERP payroll takes a commission as a one-off earning on the pay run and posts it to the period's cost.