Solution — Overview

As a first step, the payroll department has decided to audit the Sales Commission Detail report for accuracy on the calculated totals. While the balancing activity of the payroll department, in the future, will be much more extensive, they need to implement their first balancing rule within three hours. This is when the payroll information is finalized for payment to employees. Because of the limited time available to implement this rule, they have decided to perform a simple check. But they will soon discover, when they implement the rule, that a major quality control surprise is waiting for them.

Figure 59 Sample Page from the Sales Commission Detail Report

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INTRAC INC.            SALES OPERATIONS DEPARTMENT     DATE 10/10/01 TIME 23:45      PAGE  4      

    S A L E S     C O M M I S S I O N S    D E T A I L           FROM 10/10/01   TO  10/10 01  

|SALESPERSON    HARVEY J. JONES  (197) | INVOICE # | INVOICE DATE |    AMOUNT  | STATUS

|                                      | CJ39394   | 02/02/00     |    2040.00 | COLLECTION |

|                                      | CJ98443   | 03/03/00     |     245.00 |            |

|                                      | MJ24545   | 04/04/00     |   10344.40 |            |

|                                      | RJ10030   | 01/02/00     |    5329.39 |            |

|                                      | RJ12233   | 02/02/00     |    5000.00 |            |

|                                      | RJ30021   | 03/02/00     |   16670.10 |            |

|                                      | RJ32991   | 02/03/00     |   30300.44 |            |

|                                      | RJ33939   | 03/03/00     |     900.25 |            |

|                                      | RJ38001   | 04/04/00     |    1000.23 |            |

|                                      | RJ93043   | 04/04/00     |     415.89 |            |

+--------------------------------------------------------------------------------------------

|TOTAL SALES - THIS MONTH                                             72245.70 (PAID IN FULL)

|ADJUSTMENTS                                                          -5800.70

|YTD SALES (INCLUDING THIS MONTH)                                   -127879.00

|YTD COMMISSIONS PAID                                                     0.00

|YTD COMMISSIONS OWED                                                 -5115.00

|COMMISSION PAYROLL AMOUNT                                             5115.00

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Shown above is a sample page from the Sales Commission Detail report. The audit of this report takes YTD Commissions paid, adds this to the current month commissions and compares the total to YTD Commissions owed. If the amounts are not equal, there is a serious payroll error.

To convince the INTRAC sales management of the integrity of the data, you would like to have a balancing report that shows the above calculations performed for every salesperson in the company.

You have obtained a small part of the production report, which is available in the IOA SAMPREPS library under the name CTBREP3. The part of the report on which you will work includes three sales employees and their actual figures from the last commission report.