If you have a deal with incremental percentage rates for specific turnover bands, then you will be able to choose to make it retrospective or non-retrospective.
If retrospective, the percentage rate for the band of turnover reached will be applied to all historic turnover that applies to the deal. If not, the percentage rate is only applied to the turnover that falls within the qualifying band.
Consider for example a deal that has turnover bands as follows:
|
Turnover Target, GBP |
Rate, % |
|
1,000,000 |
2 |
|
1,500,000 |
3 |
|
2,000,000 |
4 |
If the total for included turnover is £1,800,000:
-
DealTrack will calculate the earnings as: 3% x £1,800,000 = £54,000 if the Retrospective? box is ticked.
-
2% x (£1,500,000 - £1,000,000) + 3% x (£1,800,000 - £1,500,000) = £19,000 if the Retrospective? box is not ticked.
Comments
0 comments
Article is closed for comments.