Calculation and closing commissions
Posted by Teanna Spence on Wed, Dec 23, 2009 @ 04:58 PM
Here at Salary.com we are counting down the days - the hours, actually - until the end of the year, and I'm sure you are doing the same. So naturally, I'm thinking about end of period closing issues.
Some administrators will leave a period open until they need to start calculations for the next period. This can be a dangerous practice. You could possibly change the data, and the amount you sent to payroll may not agree with what your system is showing.
I am a firm believer that you must lock down your system when you send the feed to payroll. That is the only way you can guarantee that the numbers you sent to payroll and all the details that support that earnings calculations will be the same. If you ever have to discuss in a court of law how you calculated someone's commission, you need to be able to provide undisputable proof as to how the commission was calculated. This can only be done if you have closed the period before sending it to payroll and archived your supporting data and reports.
The Motivator Team wishes you a wonderful holiday season and all the best in 2010!