Draws and guarantees

A draw or guarantee tops a salesperson up to an agreed amount in a period when their commission is lower. A recoverable draw is an advance: it is paid back from later periods when the salesperson earns more than the draw.

Set up a draw

1. Create a plan, or use an existing one, and add a component with the method Draw / Guarantee.
2. Choose the Period Length, enter the Draw Amount (LCY) and turn on Recoverable Draw if it is an advance.
3. Assign the plan to the salesperson, or to their team.

A recoverable monthly draw of 500.00.

A draw is paid only to salespeople who have the plan by name or through a team. A plan with a draw cannot be assigned to All Salespeople.

What the period close pays

Draws are calculated last, when you close the period, so they see all the other commission the salesperson earned in it.

• Guarantee (not recoverable): if the salesperson earned less than the draw amount, the difference is paid.
• Recoverable draw: the difference is advanced. In later periods, what the salesperson earns above the draw amount pays back the advance first.

Example: a recoverable draw of 500.00 a month. October earns 95.05, so the draw advances 404.95. November earns 570.30, so 70.30 pays back part of the advance. The settlement pays 1,000.00 for the two months: 500.00 in October and 500.00 in November.

See Period close and tiers for how to close a period.