How to audit sales commissions
Last reviewed 2026-09-28
A sales commission audit checks that every rep was paid what the plan says, on bookings that really happened. Tie the credited bookings to the general ledger, recompute each rep's commission from the signed plan, compare it with what was paid, and total overpayments and underpayments separately so they cannot cancel out.
Sales commission audit checklist
- Get the signed plan for the period. Rates, quota, tiers, clawback window, and the conditions a deal must meet to count. Audit against the plan, not the spreadsheet that implements it.
- Tie credited bookings to the ledger. The total of all deals credited to reps should equal booked revenue, or differ only by items you can name.
- Look for deals credited twice. Every deal id should appear once, or in an approved split.
- Remove what does not qualify. Cancelled deals inside the clawback window, unsigned contracts, and anything the plan excludes.
- Recompute each rep from the plan. Base rate up to quota, accelerated rate above it.
- Compare with what was paid, rep by rep. Record every difference with the deal and the plan clause that explains it.
- Total overpayments and underpayments separately. Never net them.
- Correct and document. Recover or pay the differences under the plan's terms, and fix the formula that caused them before the next run.
Worked example: one quarter, three reps
The plan pays 8% on bookings up to a $100,000.00 quarterly quota and 12% on bookings above it. A deal cancelled within 90 days earns nothing.
| Rep | Credited | Cancelled | Commissionable | Due per plan | Paid | Paid − due | Finding |
|---|---|---|---|---|---|---|---|
| Rep A | $130,000.00 | $0.00 | $130,000.00 | $11,600.00 | $13,000.00 | +$1,400.00 | Overpaid |
| Rep B | $90,000.00 | $12,000.00 | $78,000.00 | $6,240.00 | $7,200.00 | +$960.00 | Overpaid |
| Rep C | $115,000.00 | $0.00 | $115,000.00 | $9,800.00 | $9,200.00 | −$600.00 | Underpaid |
| Total | $335,000.00 | $12,000.00 | $27,640.00 | $29,400.00 | +$1,760.00 |
What each line shows
- Rep A booked $130,000.00: $100,000.00 at 8% and $30,000.00 at 12%, so $11,600.00 was due. $13,000.00 was paid, a flat 10% on everything: $1,400.00 overpaid.
- Rep B was paid on $90,000.00, including deal 1047 for $12,000.00 that was cancelled inside the clawback window. On the $78,000.00 that qualifies, $6,240.00 was due and $7,200.00 was paid: $960.00 overpaid.
- Rep C booked $115,000.00, above quota, but was paid the base rate on all of it. $9,800.00 was due and $9,200.00 was paid: $600.00 underpaid.
Why the total alone would have missed it
Tying bookings to the ledger
Deals credited to reps total $335,000.00. The general ledger shows $323,000.00 of bookings for the quarter, a difference of $12,000.00. The cancelled deal accounts for $12,000.00 of it, leaving $0.00 unexplained. No deal is credited to more than one rep. Had anything been left unexplained, it would stay open with an owner until somebody found the deal behind it, rather than being written off as timing.
Where commission errors come from
- The spreadsheet does not match the plan. A flat rate where the plan has tiers, or a quota from last year.
- Clawbacks that depend on someone remembering. A cancellation recorded in the CRM but not in the commission file.
- Split and duplicate credit. Two reps each credited with the whole deal.
- Timing. A deal paid in the quarter it was signed and again when it was invoiced.
- Netting. Reviewing only the total, so errors in opposite directions cancel.
The same discipline applies to any variance: compare gross, not net, and keep what cannot be explained visible. See the budget vs actual variance guide and the explainer on unmatched, unexplained and rounding differences.
Try Valcenra free
Valcenra compares figures gross in both directions, ties them to the ledger, and keeps any difference it cannot explain as an open item with an owner and the evidence needed. It is read-only: it does not pay, recover or approve commissions.
The free workspace is one entity, two users and five stored analysis runs a month, with no card and no sales call.
Common questions
- How do you audit sales commissions?
- Tie the bookings the commission run was based on to the general ledger, recompute each rep's commission from the signed plan, compare it with what was paid, and investigate every difference. In the example that finds $2,360.00 overpaid and $600.00 underpaid across three reps.
- Why not just compare total commission paid with total due?
- Because overpayments and underpayments cancel. The example's net difference is +$1,760.00, which hides $2,360.00 of overpayments and $600.00 of underpayments. Compare rep by rep and total the two directions separately.
- What are the most common commission errors?
- A flat rate applied where the plan has tiers, an accelerator missed above quota, a cancelled deal not clawed back, a deal credited to two reps, and a deal paid before it met the plan's conditions, such as a signed contract or payment received.
- How often should commissions be audited?
- Recompute every payout before it is paid, and audit a sample in depth each quarter or when the plan changes. Plan changes are when formulas in a commission spreadsheet most often stop matching the plan.
An illustrative example with invented figures. General information, not accounting, legal or payroll advice. Last reviewed 2026-09-28.