You can review draws in the ledger to confirm and track draw advances, recoveries, and balances. Processing order affects the calculations, and different draw types appear differently in the ledger.
Processing order
Each commission period, Pay runs draw components in this order:
Draw Advance
Guaranteed Commission
Draw Recovery
Non-Negative Commission
Draws appear differently in the commissions ledger depending on the plan type and pay mechanism. Each example below assumes a $3,000 per-period draw (or guarantee floor) and a rep who earns $1,000, then $4,000, then $8,000 in commission.
Recoverable draw
A draw advance each period, recovered from earned commission as it comes in. The outstanding balance is tracked and drawn down.
Period | Commission earned | Draw advance | Draw recovery | Take-home | Draw balance owed |
|---|---|---|---|---|---|
1 | $1,000 | +$3,000 | −$1,000 | $3,000 | $2,000 |
2 | $4,000 | +$3,000 | −$4,000 | $3,000 | $1,000 |
3 | $8,000 | +$3,000 | −$4,000 | $7,000 | $0 |
Non-recoverable draw
The same draw advance each period, but never recovered, so the rep keeps it on top of earned commission. No balance is tracked.
Period | Commission earned | Draw advance | Draw recovery | Take-home |
|---|---|---|---|---|
1 | $1,000 | +$3,000 | — | $4,000 |
2 | $4,000 | +$3,000 | — | $7,000 |
3 | $8,000 | +$3,000 | — | $11,000 |
Guaranteed Commission
No advance; a top-up only when earned commission is below the floor, bringing the rep up to the minimum.
Period | Commission earned | Guarantee top-up | Take-home |
|---|---|---|---|
1 | $1,000 | +$2,000 | $3,000 |
2 | $4,000 | — | $4,000 |
3 | $8,000 | — | $8,000 |