Word to describe the total on which commissions are calculated

Suppose a team of salespeople are to be paid on commissions. These commissions are calculated by subtracting specific expense items from the revenue they generated (for example: advertising costs). Some other expense items are not subtracted from the revenue (for example: travels).

For example, John generated 100,000.00$ in sales, and for this he spent 60,000.00$ in ads and 10,000.00$ in travels and courses.

John commissions will be calculated as a percentage of 100,000.00$ - 60,000.00$, and the 10,000.00$ he spent on travels and courses will not be subtracted from this total upon which commissions are calculated.

What is the word for this total? Suppose you were to redact a sheet like this:

John's commissions recap:

Revenue generated: 100,000.00$
Ads costs: 60,000.00$
Other costs: 10,000.00$
Net income: 30,000.00$ (revenue - all expenses)
[MISSING WORD]: 40,000.00$ (revenue - ads only)
Commission: 10% of 40,000.00$ = 4,000.00$

What would you write in 'MISSING WORD'? Would "sub-total" be appropriate? What's a more appropriate alternative?

Solution 1:

It's called a commission basis. In accounting, a basis is a collection of financial elements. A compensation basis is the collection of compensation items one is entitled to.

https://www.accountingtools.com/articles/2017/5/16/commission-expense-accounting

To accurately calculate your commission, you need to know the particulars of your agreement with your employer. You should consider the below factors before you make your calculation, as they influence commission payments:

Commission basis: The commission basis is the dollar amount on which the calculation is based. The commission basis is usually the total amount of sales, and can also be the gross margin or net profit. It can even be the inventory value.

Commission rate: This is the fixed number or percentage connected to the sales amount.

Override: The commission rate may change according to the result.

Commission period: The period over which you will calculate the sales amount and apply a commission is called the commission period.