How SplitRun calculates commissions

Every payout in SplitRun comes from one ordered calculation called the revenue flow — a waterfall that starts with the profit on a report and ends with what the company keeps. Understanding this order is the single most useful thing you can learn, because it explains every number in every report.

The waterfall, top to bottom

  Total Profit                 ← the number on the processor/vendor report
    − Vendor Share (split)      ← the vendor's cut, if reports aren't pre-split
  = Company Revenue             ← your net revenue
    − Deduction 1               ← e.g. software fee   ($ or % of a base)
    − Deduction 2               ← e.g. affiliate      (% of a base)
    − Deduction 3               ← e.g. partner/froogle(% of a base)
  = Remaining (net after deductions)
    − Agent Commission          ← agent's % × their base (usually Remaining)
    − Overrides                 ← manager's % × the rep's commission
  = House                       ← what the company keeps

Each layer feeds the next. That's why the order of deductions matters and why the base you pick for each one changes the result.

The rules behind each layer

1. Total Profit is whatever the report reports. For payment ISOs this is the residual. If your reports arrive already net to you ("pre-split" / 100%), skip to step 3.
2. Vendor Share removes the vendor's cut. If your data source has a Company Split % of, say, 60%, the vendor keeps 40% and your Company Revenue is 60% of Total Profit. With a 100% split there's no vendor share.
3. Deductions run in the order you arrange them, each taking a percentage or a fixed dollar amount off a chosen base:
   • Profit — the full Total Profit line
   • Revenue — Company Revenue
   • Remaining — the running balance after the deductions above it

A deduction can be paid to an agent (an affiliate or partner earns it) or be a cost paid to no one (a software fee). See Add a deduction.

1. Remaining (also shown as Net after deductions) is the balance once every deduction is applied. This is the usual commission base.
2. Agent Commission is each assigned agent's percentage × their commission base. Different agents — and different income types — can use different rates and bases.
3. Overrides pay a manager a percentage of a rep's commission (not of revenue). If a rep earned $100 and their manager has a 10% override, the manager earns $10.
4. House is everything left after all payouts and adjustments.

A worked example

A merchant's residual for the month is $800 on a data source that reports pre-split (100% to you), configured like this:

• Software fee: $50 (fixed cost, paid to no one)
• Affiliate: 10% of Remaining
• Froogle/partner: 3% of Remaining
• Agent: 10% of net after deductions
• Manager override: 10% of the agent's commission

Notice how each deduction's base is the running balance above it — the affiliate takes 10% of $750 (after the fee), not of the original $800. That "of remaining" chaining is what the base setting controls, and getting it right is essential. See Choosing the base.

Where you set each piece

Why "effective dates" matter here

Commission and deduction rates carry effective dates. When you set a rate "effective January 1," SplitRun applies it to every month from January onward — so uploading three months of back-data calculates each month correctly with no extra work. See Commission agreements & effective dates.

When numbers change

Any change to this waterfall — a new deduction, a changed split, a new rate — means the affected months must be recalculated. SplitRun prompts you for the period to recalculate from and does it in the background. See Recalculating commissions.