Question

so a manger should pay John a commission 24000$ in total. the 24000$ is his cut from 1225000 $ contract.

the % is 1.96. however , john will not get the full commission at once. evertime we send out an invoice , he will get his cut. so should i apply the 1.96% to every invoice i send ? by doing so will he get the full amount by the end of the contract ?

Answer 1

Yes, john will get the full commission at the end of the contract.

As the Invoices will be sent in parts will be totaled at a $ 1225000 value. john's Commission of 1.96% for every invoice sent can also be a appropriate measure as john can get his $24,000 commission by that way too.Yes. 1.96% cut on every invoice for that contract can also be done.

But, as john as not contracted like a % commission on the contract value. He has the right to demand his cut at once as his duty is fulfilled by getting the contract. John may also loose interest cost on the money as he was receiving in installments.