Sales Commission True-Up

Learn how to calculate sales commission true-ups, reconcile advances and earned payouts, and document adjustments.

What is a commission true-up?

A true-up reconciles the amount a salesperson has already been paid with the amount actually earned under the plan for a defined period. It can be positive or negative depending on advances, revised eligible sales, and the contract terms.

Worked true-up example

Suppose a rep has received €12,000 in commission advances during the year and has earned €15,500 under the final plan calculation. The true-up is €15,500 − €12,000 = €3,500 payable, subject to the plan’s payment rules.

Excel formula for the adjustment

If final earned commission is in B2 and prior payments are in C2, use =B2-C2. Track disputed transactions and adjustments separately rather than silently overwriting historical payouts.

Controls to include

Reconcile credited deals to the source CRM, check eligibility and reversals, record the approval date, and retain a clear audit trail. Negative true-ups or clawbacks may be subject to employment and local legal requirements.

Compare your sales compensation plan

Use the free CFO Help calculator to compare plan economics, or get the €49 Excel toolkit for detailed forecasting and analysis.