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Commission clawback policy template
Take back commission when a customer cancels inside the window.
What it is
If a customer cancels within the window, the commission paid on that deal is taken back from everyone who was paid on it: the rep, and any manager who earned an override.
When to use it
You pay commission before the customer has stayed long enough to prove the deal was real, for example on close or on the first invoice.
When not to
You only pay once the customer has paid in full for the period. Then there's little left to claw back.
How it's calculated
clawback line = − commission paid on the cancelled deal
balance = this month's commission + clawback lines
if balance < 0, carry it into next month
A worked example
A ₹3,20,000 deal paid the rep ₹19,200 and the manager ₹3,840 (a 20% override). The customer cancels on day 60, inside a 90-day window. Next month the rep gets a −₹19,200 line and the manager a −₹3,840 line.
| Rep, next month | Amount |
|---|---|
| Commission earned | ₹12,000 |
| Clawback line | −₹19,200 |
| Balance, carried into the month after | −₹7,200 |
Common mistakes
- Clawing back from the rep but not the manager's override on the same deal.
- Not saying what happens to a negative balance. Carry it forward, take it from future commission, or write it off, but say which.
- No fixed window. Say how many days after close a cancellation still counts (90 days in this example).
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Run this plan in Stagerev
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