When are commissions earned?
I am updating a sales comp plan and by Indiana law we must pay our employees within 10 days of earnings. This is straightforward for base pay but when it comes to commissions the date a commission is earned seems to be open to interpretation. I have heard when the sale is booked, invoiced, or paid. Can anyone tell me if there are any hardfast rules here or is this something that as a company we can define when commissions become earnings?