Corrections

Corrections: The simple path to commission management that handles churn and clawbacks

Imagine you pay sales commission in January, but the customer churns in June. Who catches it, who calculates the correction, and how does it end up in the payroll file without chaos? The Correction Calculator is Prowi’s simple tool that automatically calculates corrections and clawbacks, so you can handle churn without manual errors, spreadsheets, or after-the-fact adjustments.

This is the page where you learn how Corrections makes hard scenarios feel trivial. Read on to see how you move from reactive firefighting to proactive control.

Corrections makes commission management transparent and error-free

Why a corrections tool is necessary

When a deal changes value after a payout, a chain reaction starts. Finance adjusts numbers in the ERP, Sales Ops updates the CRM, HR asks about payroll, and leadership wants a quick overview. Without a clear process you end up with manual sheets, scattered emails, and a high risk of errors.

Corrections brings everything into one logic, so you can:

• Detect changes in deals automatically
• Allocate the change correctly across the deal term
• Apply the commission rate to the forward-looking portion
• Send the correction directly to the payroll file

The result is peace of mind, fewer disputes, and an audit-ready history.

What Corrections is in practice

Corrections is a calculator and engine in Prowi that translates changes in deals into concrete correction amounts. It is based on the rules you already use in your commission management model.

How it works step by step

1. Select payout frequency
   Monthly or quarterly. It matches your commission plan.
2. Set commission rate
   Global rate, plan rate, or team rate. The rate is used to calculate the correction amount.
3. Define the corrections window
   How far a change is allowed to impact. For example, 6 months for monthly payout or 2 quarters for quarterly.
4. Choose payroll period
   The period being prepared for posting and payroll.
5. Record the change
   For example, churn, MRR reduction, shorter contract term, or discount. The value can be negative or positive.
6. Automatic calculation
   Corrections splits the change over the remaining term and applies the commission rate to the part that has not yet been paid out. You get a clear clawback or top-up amount.

Example:
A deal closes on January 1 and commission is paid. In June the customer partially churns, so the deal drops by 50 percent. Corrections automatically calculates the correction for the remaining part of the term and prepares the amount for payroll.

Why teams choose Corrections

Commission management without automated corrections is a time sink. Here are the gains customers typically see in the first weeks:

• Time savings in Finance and Sales Ops
  Less manual data handling and fewer ad hoc calculations.
• Fewer errors and disputes
  Rule-based logic produces consistent results. Everyone can see how it works.
• Faster month-end
  Corrections are consolidated and prepared together with the rest of payroll data.
• Scalability
  As your sales grow, the number of corrections grows. Automation keeps it manageable.
• Predictability
  Clear rules for clawbacks and corrections create confidence for both sellers and leadership.

Features that make a difference

Rules that match your model

• Monthly or quarterly payout
• Close date or invoice date
• Commission rates at plan, team, or user level
• Corrections window that matches your policy

Transparency for everyone

• Visual calculation in a clear formula
• Explanatory labels like Monthly diff, Remaining periods, and Rate
• Color coding on amounts so negatives and positives stand out quickly

Payroll-ready

• Exportable corrections for the payroll period
• Audit trail showing who did what and when
• API and integrations so data flows correctly the first time

Use cases where Corrections is invaluable

• Handle churn without drama.
  When MRR drops mid-term, Corrections calculates exactly how much needs to be adjusted going forward.
• Clawback for cancellations.
  If a deal is canceled after payout, Corrections calculates how much commission must be clawed back and in which payroll period it should happen.
• Upsell and expansions.
  If the contract value increases, Corrections calculates the positive correction so the seller receives the correct top-up.
• Contract shortening.
  If the deal length decreases, the change is allocated correctly and only applied to remaining periods, not retroactively.

How Corrections creates alignment across the organization

• Sales can confidently promise a simple and fair policy for clawbacks and corrections.
• Finance gains more predictable numbers and fewer after-the-fact adjustments.
• HR and Payroll receive a clear list with amounts, periods, and explanations.
• Leadership maintains control of margin and bonuses without oversimplifying strategy.

General FAQ

What is a clawback in commission management?
A clawback is the reversal of paid commission when underlying revenue changes. With Corrections it happens automatically and rule-based, so you avoid manual errors.

How do you handle corrections for churn?
When a customer churns mid-term, Corrections allocates the change across remaining periods and applies the rate. This means corrections only impact future periods, not amounts already paid.

How do we ensure fair treatment of sellers?
By making the logic transparent, consistent, and anchored in a single source of truth. Everyone can see the formula and the same rules are applied every time.

Why does Corrections provide better control than spreadsheets?
Spreadsheets are fine for one-off analysis, but they do not scale and cause version chaos. Corrections is built for ongoing operations. It handles changes, windows, rates, and periods without losing the overview. Once you set your commission management rules, it runs.

Frictionless implementation

1. Configure your rules for payout, payout basis, and corrections window.
2. Connect CRM and ERP via standard integration or API.
3. Test with historical cases. Verify that the calculations match your policy.
4. Go live and let Corrections deliver corrections each payroll period.

Tip: Start with 2 to 3 concrete churn cases. Once your team sees the calculation is spot on, trust builds quickly.

FAQ for Prowi’s Corrections feature

Does Corrections only produce negative amounts for churn?
No. Churn or downgrades typically result in a negative correction. Upsells or expansions usually create a positive correction.

Does it work for both monthly and quarterly commission management?
Yes. You choose frequency and corrections window. Both are supported.

How does it fit into your payroll process?
Corrections groups amounts by payroll period and prepares them for export so HR can post safely.

Can sellers see why an amount was deducted?
Yes. The formula is presented in an easy-to-read format and all key fields are clearly labeled.

Want an automatic setup?

If you want commission management to be robust to real-world changes, corrections and clawbacks must be integrated into the process. Corrections does exactly that. You get transparency for Sales, precision for Finance, and peace of mind for HR, whether a customer churns, downgrades, or expands.

Ready to handle churn with confidence

Book a short demo and see how Corrections calculates your next correction live.