Skip to content
Help centre

How is commission above target worked out?

A fee on the part above target is worked out month by month. A month below its target bills nothing and nothing carries to the next month.

3 min readUpdated 7 October 2026

Some contracts charge commission only on the sales above a target. Fabrik Analytics works this out one month at a time: each month is compared with that month's own target, and nothing is carried between months.

The rule

For each calendar month:

fee = rate x (the month's actual minus the month's target), if the actual is above the target.

  • A month above its target: the rate applies to the part above.
  • A month below its target: the fee is nothing. No shortfall, credit or "already invoiced" amount is carried to the next month.
  • A month with no target: the fee is nothing.
  • A portfolio contract adds its brands together, and their targets together, then applies the same rule.

Before you start

  • You need agency finance access to set contracts and see commission (by default the owner, directors and the CFO).
  • The client needs a monthly target for the figure you charge on, set in the client's Trading, Targets.
  • The contract needs Commission set to A rate, with On set to The part above target, and a From month. See Set up a client contract.
  • Above-target fees work with a single rate, not with bands, and the contract's invoice currency must be the brand's reporting currency.

Worked example

Fellwick's contract charges 5% of Net Sales above target. These figures are made up:

MonthTargetActualAbove targetFee at 5%
October100,000120,00020,0001,000
November110,00095,00000
December150,000180,00030,0001,500
  • October beat its target by 20,000, so the fee is 5% of 20,000: 1,000.
  • November missed its target by 15,000. The fee is nothing, and the 15,000 shortfall is not carried forward.
  • December beat its target by 30,000. The fee is 5% of 30,000: 1,500. It is not reduced by November's miss.

Over the quarter the fees total 2,500. They are never worked out on the quarter as a whole.

Step by step: check a month

  1. Open the client. Under Account, choose Commissions.
  2. The tiles show Last month, Three-month average, Year to date and Lifetime.
  3. In Commission by month, each row shows the month, the charged figure, Commission, Retainer, Total, change and Status.
  4. Open a month to see How the commission was worked out: "{figure} this month", "Target this month", "Above target" and "{rate}% of that".

What you will see in the contract

While you edit a contract, the preview shows this month's projected figure, the month's target and the part above it. It reads "{rate}% of the part above the month's target. A month below target bills nothing and is not carried." If the month has no target it says "This month has no target, so it adds nothing."

Troubleshooting

  • Commission is 0 in a month you expected a fee: check the month's target in Trading, Targets and the contract's From month.
  • "No contracts for this brand": create a contract first under Account, Contracts.
  • "Totals leave some months out": some months could not be read or are in another currency. The table still shows each month.
  • Invoice wording: commission invoices are raised the month after, from final figures. See Raise commission invoices through Zoho Books.

Frequently asked questions

If a client misses target one month, does that reduce next month's commission?

No. Each month stands on its own. A month below its target bills nothing and leaves no shortfall, credit or balance behind.

What if a month has no target?

A month with no target bills nothing above target. Set a target for every month the contract covers in Trading, Targets.

Which sales figure is used?

The figure chosen under Charged on in the contract, for example Net Sales or Net sales + shipping, for that calendar month.

How does it work for a portfolio contract?

The portfolio's brands are added together, and so are their targets, then the same rule is applied to the totals.

Can I see how a month's figure was worked out?

Yes. On the client's Commissions page, open a month to see How the commission was worked out, with the month's actual, its target, the part above it and the fee.

Why does the preview in the contract differ from the final invoice?

The preview uses this month so far, grown to month end. The invoice is raised the month after, from the month's final figures.

Still need help?

Email us with a link to the page you were on and what you expected to see. A screenshot helps us answer first time.

support@fabrik.ae