SumProduct calculation

lylebrous

New Member
Joined
Mar 3, 2019
Messages
15
So I have a convoluted calculation that I need assistance with.

I am trying to calculate commission for hair stylists and additional commission for products that they sell.

I have no problem with the calculation that I am using for calculating their commission. Here is an example of what I am using.
=SUMPRODUCT((C13>{0,600,1000,1500,2000,2500,3000})*(C13-{0,600,1000,1500,2000,2500,3000})*{0.38,0.06,0.03,0.03,0.05,0.03,0.02})

This will give them a tiered commission. Again, this works just fine.

Now... I am trying to create a second calculation that pays them a tiered commission based on products that they sell. This would be a tiered commission again, but only if they sell a certain percentage of the services they do.

The employees earn a tiered commission once they sell at least 10% of their total services.
They get 10% of all product sales that are 10-14.9% of their services.
They get 15% of all product sales that are 15-19.9% of their services.
They get 20% of all product sales that are 20% or higher of their services.

Here is the example:
My stylist does $1000 a week in services and $90 in product sales. They would not get any commission for product sales as they are less than 10%.
My stylist does $1000 a week in services and $175 in product sales. They would get 10% of the first $149 which would be $14.90. They would get 15 percent of the $26 which would be $3.90. So their total commission would be $18.80.
My stylist does $1000 a week in services and $275 in product sales. They would get 10% of the first $149 which would be $14.90. They would get 15 percent of the $50 which would be $7.50. They would get 20% of $76 which would be $15.20. So their total commission would be $37.60.

That being said, how can I do this? I put the total of services in one cell and the total of product sales in another cell. I need to use the above example and make a tiered commission.

Thanks in advance,
Lyle
 
Re: Need help with Sum Product calculation

This means I would have to manually update the bracket every time i run this, which is weekly and for 20 people. If I am going to do all that, I might as well just calculate it and fill in a cell.
 
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Re: Need help with Sum Product calculation

Dave, do you use Skype? If so, perhaps I can show you my sheet and explain what I am trying to accomplish. I do not want to confuse you by not explaining correctly.

If so, my Skype id is lyle.brous
 
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Re: Need help with Sum Product calculation


Excel 2010
ABCDEF
1ServicesProductCommissionBracketRate
22,000.00350.00$37.50010.0%
3$37.5030015.0%
440020.0%
52,000
1b
Cell Formulas
RangeFormula
D2=(B2/A2>0.1)*SUMPRODUCT(--(B2>E2:E4),B2-E2:E4,G2:G4)
D3=(B2/A2>0.1)*(B2*0.1)+(B2>A2*0.15)*(B2-A2*0.15)*0.05+(B2>A2*0.2)*(B2-A2*0.2)*0.05
E3=A2*0.15
E4=A2*0.2
E5=A2


Consider the brackets above and the results they yield.

Consider the second arithmetic approach.


Your can explain what you require and/or post a concise example.
 
Last edited:
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Re: Need help with Sum Product calculation

Based on your example, you used 0-15% as the first bracket and then up to 20% as your next and then over 20%.

E3 should always be 14.9% of E5
E4 should always be 19.9% of E5

This means $1000 service and $275 product would produce your first example. 149 in E3 and 199 in E4
This means $1000 service and $400 product will have the same brackets.

If we have $2000 service and $550 product, we would have 298 in E3 and 398 in E4

That means that the original =('Weekly Totals ENTER 1ST'!C16/'Weekly Totals ENTER 1ST'!B16>0.1)*SUMPRODUCT(--('Weekly Totals ENTER 1ST'!C16>{0;149;199}),'Weekly Totals ENTER 1ST'!C16-{0;149;199},{0.1;0.05;0.05})
Would need to be =('Weekly Totals ENTER 1ST'!C16/'Weekly Totals ENTER 1ST'!B16>0.1)*SUMPRODUCT(--('Weekly Totals ENTER 1ST'!C16>{0;298;398}),'Weekly Totals ENTER 1ST'!C16-{0;298;398},{0.1;0.05;0.05})

Using and odd number like $3280 in service and $686 in product would yield 488.72 in E3 and 652.72 in E4
This calculation would be =('Weekly Totals ENTER 1ST'!C16/'Weekly Totals ENTER 1ST'!B16>0.1)*SUMPRODUCT(--('Weekly Totals ENTER 1ST'!C16>{0;488.72;652.72}),'Weekly Totals ENTER 1ST'!C16-{0;488.72;652.72},{0.1;0.05;0.05})

So, how can I dynamically change the above calculation to use the 2 brackets that are calculated based on the service total?
 
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Re: Need help with Sum Product calculation

E3 should always be 14.9% of E5
E4 should always be 19.9% of E5

Why? What happens to to the amount between 14.9 and 15?

If you do not want to use the SumProduct, use the second arithmetic solution.


Excel 2010
ABCDEFG
1ServicesProductCommissionBracketRateRate Diff
22,000.00500.00$65.00010.0%10.0%
3or$65.0030015.0%5.0%
4or$65.0040020.0%5.0%
52,000
1b
Cell Formulas
RangeFormula
G2=F2-N(F1)
D2=(B2/A2>0.1)*SUMPRODUCT(--(B2>E2:E4),B2-E2:E4,G2:G4)
D3=(B2/A2>0.1)*(B2*0.1)+(B2>A2*0.15)*(B2-A2*0.15)*0.05+(B2>A2*0.2)*(B2-A2*0.2)*0.05
D4=(B2/A2>0.1)*(B2*2+(B2>A2*0.15)*(B2-A2*0.15)+(B2>A2*0.2)*(B2-A2*0.2))*0.05
E3=A2*0.15
E4=A2*0.2
E5=A2
 
Last edited:
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Re: Need help with Sum Product calculation

E4 will pickup the items over 14.9%

I guess I can just adjust to 15% and 20%

I will play with the calculations you gave in a little while and let you know what works
 
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Re: Need help with Sum Product calculation

Hi Dave,
I am using your SUM PRODUCT Solution in the first reply. The one is D3. If you see my example above, how can I get the bracket options to populate in the formula? Your formula based on the original example gives the brackets in RED. With the new example, and all the calculations, I would need to input the BLUE which will be the only variable. As far as the amount between 14.9% and 15%, that is picked up in the next bracket. I am just using rates given to me by ownership, so I really do not care about the difference there. The SUM PRODUCT solution works, I just need to figure out how to update the bracket based on the calculation of E3 and E4.

If we have $2000 service and $550 product, we would have 298 in E3 and 398 in E4

That means that the original =('Weekly Totals ENTER 1ST'!C16/'Weekly Totals ENTER 1ST'!B16>0.1)*SUMPRODUCT(--('Weekly Totals ENTER 1ST'!C16>{0;149;199}),'Weekly Totals ENTER 1ST'!C16-{0;149;199},{0.1;0.05;0.05})
Would need to be =('Weekly Totals ENTER 1ST'!C16/'Weekly Totals ENTER 1ST'!B16>0.1)*SUMPRODUCT(--('Weekly Totals ENTER 1ST'!C16>{0;298;398}),'Weekly Totals ENTER 1ST'!C16-{0;298;398},{0.1;0.05;0.05})

Any thoughts? I do appreciate your time and thank you!

lyle
 
Upvote 0
Re: Need help with Sum Product calculation

I am still looking to solve the last part of the equation below. Any assistance would be awesome.


I am using the SUM PRODUCT Solution in the first reply. The one is D3. If you see my example above, how can I get the bracket options to populate in the formula? Your formula based on the original example gives the brackets in RED. With the new example, and all the calculations, I would need to input the BLUE which will be the only variable. The SUM PRODUCT solution works, I just need to figure out how to update the bracket based on the calculation of E3 and E4.

If we have $2000 service and $550 product, we would have 298 in E3 and 398 in E4


ABCDEFG
ServicesProductCommissionBracketRateRate Diff
or
or

<thead>
</thead><tbody>
[TD="align: center"]1[/TD]

[TD="align: right"][/TD]

[TD="align: center"]2[/TD]
[TD="align: right"]2,000.00[/TD]
[TD="align: right"]550.00
[/TD]
[TD="align: right"][/TD]
[TD="align: right"]$65.00[/TD]
[TD="align: right"]0[/TD]
[TD="align: right"]10.0%[/TD]
[TD="align: right"]10.0%[/TD]

[TD="align: center"]3[/TD]
[TD="align: right"][/TD]
[TD="align: right"][/TD]

[TD="align: right"]$65.00[/TD]
[TD="align: right"]298
[/TD]
[TD="align: right"]15.0%[/TD]
[TD="align: right"]5.0%[/TD]

[TD="align: center"]4[/TD]
[TD="align: right"][/TD]
[TD="align: right"][/TD]

[TD="bgcolor: [URL=https://www.mrexcel.com/forum/usertag.php?do=list&action=hash&hash=92D050]#92D050[/URL] , align: right"]$65.00[/TD]
[TD="align: right"]398
[/TD]
[TD="align: right"]20.0%[/TD]
[TD="align: right"]5.0%
[/TD]

[TD="align: center"]5[/TD]
[TD="align: right"][/TD]
[TD="align: right"][/TD]
[TD="align: right"][/TD]
[TD="align: right"][/TD]
[TD="align: right"]2,000[/TD]
[TD="align: right"][/TD]
[TD="align: right"][/TD]

</tbody>


That means that the original =('Weekly Totals ENTER 1ST'!C16/'Weekly Totals ENTER 1ST'!B16>0.1)*SUMPRODUCT(--('Weekly Totals ENTER 1ST'!C16>{0;149;199}),'Weekly Totals ENTER 1ST'!C16-{0;149;199},{0.1;0.05;0.05})
Would need to be =('Weekly Totals ENTER 1ST'!C16/'Weekly Totals ENTER 1ST'!B16>0.1)*SUMPRODUCT(--('Weekly Totals ENTER 1ST'!C16>{0;298;398}),'Weekly Totals ENTER 1ST'!C16-{0;298;398},{0.1;0.05;0.05})

How can I update the equation dynamically with the results in E3 and E4???

Thanks,
lyle
 
Upvote 0
Re: Need help with Sum Product calculation

Hello Lyle
I do not believe you can adjust the array {0;149;199}) as you hope to do.

I suggested the arithmetic approach as an alternative.

As I indicated in post two etc, your definition of how to do the calculation did not seem to be correct and your example calculation
was not consistent with the definition.

Ensure that you start with a good definition of the commission calculation.
Try the arithmetic approach and see if it works for you.

You may be able to build a UDF to complete the calculation.
 
Upvote 0
Re: Need help with Sum Product calculation

I will try to make it work with the arithmetic way.

Stay tuned.
 
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