How the commission scenario works.

Start with the same annual period

Distributor commission is what the distributorship earns under its vendor arrangements, not what it pays reps. Use the same period and commission basis for every input. Count-based exception rates can give a different answer because case amounts differ.

An annual amount cannot tell you today's outstanding balance. A missing PO, an unpaid invoice and a confirmed write-off describe different states.

A hypothetical worked example

Start with $6,000,000 in annual billed procedure revenue and a 26% distributor commission rate.

1. $6,000,000 × 26% = $1,560,000 annual commission.
2. $1,560,000 × 20% = $312,000 annual commission associated with PO exceptions.
3. $312,000 × 12% = $37,440 assumed uncollected for that year.

That is 2.4% of annual commission under these inputs. Dividing by 8 reps gives a $4,680 equal-share illustration, not individual losses or payouts. Repeating unchanged for 5 years gives $187,200; it is not a forecast.

These are shares of commission dollars in the same annual cohort, not case counts. Change the assumptions in the commission scenario estimator, including zero exception or uncollected rates.

This is annual scenario arithmetic, not a current receivables balance, accounting write-off, forecast or promised recovery.

Prepare records for a case review

Bring commercial case records so each unresolved item can be checked against its invoice, purchase order and recorded receipts. Keep the date, facility, vendor, case amount and commission details where available, and identify who owns follow-up. Review the source records before drawing conclusions about loss or recovery. Do not include patient names, MRNs, dates of birth or other patient information.

Use the case-tracking checklist and evaluation sheet (CSV) to prepare.