Correction

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Commissions and bonuses are rarely a static size. Agreements are changed, customers disappear and data is corrected. When reality does not match the original calculations, the need arises for Correction; a post-regulation in which commission is adjusted back in time to match the actual data.

What does correction mean in a commission model?

Correction covers the process by which a company corrects previously paid commissions. In English you can call it post-regulation. This typically happens if a customer cancels an agreement, if the contract value is reduced, or if a CRM system is only later updated with correct numbers.

Where bonuses are often a one-time payment, commissions are ongoing and subject to change along the way. This makes correction a necessary tool to maintain the balance between expectations, payouts and the real income of the company.

Why is correction important?

  • Risk management and budget control
    • Without post-regulation, companies risk paying commissions on revenue that never materializes. Correction ensures that labor costs always follow the actual results and not just the expected ones.
  • Fairness and transparency
    • For the employee, it can feel uncomfortable to see commission being regulated downwards. Therefore, it is important that the rules of correction are clear and that the model is transparent. When the framework is clear, post-regulation is experienced as a natural part of the system and not as a punishment.

How is correction handled in practice?

Previously, correction was handled in heavy Excel sheets, where managers and controllers reviewed contracts manually. This method was time consuming and often associated with errors. Today, systems such as Prowi automate the process. If a deal is reduced in value or terminated, the numbers are automatically adjusted in real time. The employee can see his updated commission base directly in the app, and management can trust that the reporting is correct.