How often is commission paid?
Companies usually pay commission monthly, quarterly or annually. A business may want to wait until the sales contract is signed and finalized and they receive funds to pay out the commission.
How do you account for sales commissions?
How to Record Sales Commissions as an Expense? Sales commissions are a selling-related expense, and as such, they are considered an operating expense. This is the case if the sales relate to the company's core activities. If they are not part of the core activities, then they can be recorded under other expenses.
How a salesperson is to be paid by commission or salary?
Some come in the form of a simple percentage, while others are much more complicated. However, the typical commission rate for sales starts at about 5%, which usually applies to sales teams that have a generous base pay. The average in sales, though, is usually between 20-30%.