What is First Dollar Calculation?
First Dollar Calculation is used if sales person commission calculation is based on YTD attainment & rises as attainment increases. When the YTD attainment increases, the commission rate to be paid also increases subsequently and it is much higher than what was paid before. If the Attainment exceeds threshold the commission rate also changes , the difference in commission rates (current YTD attainment – Commission rate paid already ) is applied to all the transactions to recalculate the commissions. This type of calculation can be applied only in Basic Commission Rate Lookup.
