Commission statement is a detailed breakdown of a salesperson's variable earnings for a specific period. It shows all deals that contributed to commission, the rates applied, any adjustments or clawbacks, and the final payout amount. According to Salesforce (2024), companies with automated commission statements report 67% fewer compensation disputes.
A well-designed commission statement serves multiple purposes:
According to WorldatWork (2024), salespeople spend an average of 3.7 hours per month reviewing and understanding their commission statements.
| Section | Content | Purpose |
|---|---|---|
| Header | Name, period, OTE, quota | Context and reference |
| Performance summary | Quota attainment, total earnings | Quick status |
| Deal details | Each deal with amount, rate, commission | Line-by-line transparency |
| Adjustments | Clawbacks, corrections, SPIFs | Explanation of variances |
| Year-to-date | Accumulated earnings and attainment | Annual overview |
| Payout info | Amount, payout date | When money arrives |
Account Executive - March 2025
| Parameter | Value |
|---|---|
| Monthly quota | $75,000 |
| Achieved sales | $93,750 (125%) |
| Customer | Date | ARR | Rate | Commission |
|---|---|---|---|---|
| Acme Inc. | Mar 5 | $41,250 | 10% | $4,125 |
| TechStart Corp. | Mar 12 | $26,250 | 10% | $2,625 |
| GlobalWidget | Mar 22 | $26,250 | 10% | $2,625 |
| Subtotal | $93,750 | $9,375 |
| Description | Amount |
|---|---|
| Base commission (0-100%) | $7,500 |
| Accelerator (100-125% @ 1.5x) | $2,813 |
| Total variable | $10,313 |
| Type | Deal | Reason | Amount |
|---|---|---|---|
| Clawback | Feb - DataCo | Month 2 churn | -$1,125 |
| SPIF | Multi-year bonus | 3-year agreement | +$450 |
| Net adjustments | -$675 |
| Description | Amount |
|---|---|
| Commission earned | $10,313 |
| Adjustments | -$675 |
| March payout | $9,638 |
| Payout date | April 15, 2025 |
| Aspect | Spreadsheets | Automated |
|---|---|---|
| Generation time | Hours per rep | Instant |
| Error rate | 3-8% of payouts | <1% |
| Rep access | Email/request | Real-time self-service |
| Scalability | Breaks at 20+ reps | Unlimited |
Ideally within 3-5 business days after period close. Delayed statements create uncertainty and signal disorganization.
Include a clear process for disputing calculations. Most disputes stem from missing deals or incorrect data—catching errors early builds trust.
Yes. Monthly statements should show accumulated progress. Reps want to know where they stand against annual targets, not just monthly snapshots.
Commission statements are the foundation of trust between reps and company. Manual spreadsheet processes create errors and delays.
With Prowi, detailed commission statements are generated automatically when the period closes—with full deal visibility, adjustment tracking, and self-service access for reps.