Understanding Earnings (and why they differ from Payouts)

In Centify, there is a clear distinction between Earnings and Payouts. Understanding this difference is essential for managing commission settlement accurately and knowing when commissions are earned versus when they are actually paid.

What is an Earning?

An Earning represents a calculated commission entitlement. Earnings are always generated from a deal and reflect the total commission amount an employee has earned based on the applicable incentive structure.

The final commission amount is calculated using several factors, including the incentive applied to the deal, the assigned employee, relevant deal properties, and, where applicable, the employee’s target achievement or additional bonus conditions. Because multiple commission components can apply to a single deal, it is possible for one deal to generate more than one earning.

For example, a new customer deal may result in a 7% deal participation commission, an additional €100 bonus for signing a multi-year contract, and a separate target-based commission triggered by quota achievement. In Centify, each of these components appears as its own earning, even though they all originate from the same deal.

The Difference Between Earnings and Payouts

The earning amount reflects the full commission entitlement. However, this does not necessarily mean that the full amount becomes payable immediately. If payout rules are defined within the incentive, the commission may be split into multiple payout events over time.

For example, a €1,000 commission may be structured so that €500 becomes payable when the deal closes, while the remaining €500 becomes payable only after the customer invoice has been issued or paid. This allows commission payouts to align with business rules and revenue realization.

To understand when a commission becomes payable, you can open the earning and click the “View payout schedule” button. This view shows exactly which portion of the total commission becomes payable in each month, which amounts are already payable, and which portions are still pending future payout conditions.

Positive and Negative Commission Adjustments

While commissions are typically positive, Centify also supports negative and corrective commission adjustments. There are three main types of commission records: Original, Clawback, and Top-Up.

• The Original commission represents the initially calculated commission generated from a deal. This is the standard earning and is usually positive.

• A Clawback represents a negative adjustment and is used to reverse commission that was previously granted. This may occur if a deal is cancelled, a contract is terminated, or a billing correction affects the original commission basis. Clawbacks are automatically offset against future payouts to ensure accurate settlement.

• A Top-Up is a positive adjustment applied to an existing commission. This increases the previously calculated commission amount and may occur if a deal value increases, contract terms change, or a manual correction is required.

Viewing Detailed Information for an Earning

You can access the full details of any earning at any time by clicking on the earning entry. This opens a side panel that provides a complete overview of the commission.

• The Overview tab summarizes the earning, including the commission amount, associated deal, applied incentive, and assigned employee.

• The Payouts tab shows when each portion of the commission becomes payable. This allows you to understand the timing of payouts and see which amounts are already payable and which are still pending.

• The Calculation tab provides full transparency into how the commission was calculated. Here, you can review the applied commission rates, bonuses, and any adjustments that contributed to the final amount.

• The Approvals tab displays the approval status and history of the earning, allowing you to track whether the commission has been reviewed and approved.

Summary

In summary, earnings represent the total commission entitlement generated from deals, while payouts determine when those commissions are actually paid. A single deal can generate multiple earnings, and payout rules may distribute commission payments over multiple periods. Centify also supports adjustments such as clawbacks and top-ups to ensure commissions remain accurate over time. Detailed earning information is always available, providing full transparency into calculation, payout timing, and approval status.