Setup guides

Commissions on projects

Pay one person or a role on hours, revenue, margin or a milestone, with tiers and a cap.

Commission plans live in Pay > Commissions.

What a plan is#

A plan belongs to one project, or to a parent project that covers its children. It pays one person, or everyone in a role, such as project managers.

The basis#

What the rate multiplies:

Basis Worked out as
Approved hours Hours on the project
Billed revenue Hours times each person's bill rate
Gross margin Revenue minus hours times each person's cost rate
Flat A set amount when the project reaches a milestone

Tiers and a cap#

Tiers apply like tax brackets: each rate applies only to the part of the amount inside its tier. For example, 2% up to $50,000 and 3% above it pays 2% on the first $50,000 and 3% on the rest. A cap bounds what the plan pays in a period.

Where the hours come from#

Only approved hours count, the same ones that go to payroll and NetSuite, so a commission cannot disagree with the timesheet. The project profitability report shows the revenue and cost behind each project.