If you have a deal with incremental percentage rates for specific target bands, then you will be able to choose to make it retrospective or non-retrospective.
If retrospective, the percentage rate for the target band reached will be applied to all historic transactions that apply to the program line in question. If not, the percentage rate is only applied to the transactions that fall within the qualifying band.
Consider for example a program line that has target bands as follows:
|
Turnover Target, GBP |
Rate, % |
|
1,000,000 |
2 |
|
1,500,000 |
3 |
|
2,000,000 |
4 |
If the total for included transactions is £1,800,000:
-
Trading Programs 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.
Information is also available on the Fully retrospective setting.
Comments
0 comments
Article is closed for comments.