Commission Manipulation
Definition
Inflating the value, volume, or classification of sales transactions to generate a larger commission payout. Methods include recording fictitious sales, misclassifying non-commissionable revenue, and splitting or timing transactions to exploit tiered payout thresholds.
Related terms
- Fictitious Inventory Write-Off
- A journal entry that reduces the recorded inventory balance under a legitimate category (obsolescence, spoilage, shrinkage) without an actual loss of stock....
- Ghost Employee
- A fictitious or terminated worker whose record remains active on the payroll master file. Wages are disbursed under that record and diverted...
- Headcount Reconciliation
- A detection procedure that cross-references every record on the payroll register against HR personnel files, building access records, and direct management confirmation....
- Inventory Shrinkage Rate
- The ratio of inventory loss (the difference between book inventory and physical count) to total inventory, expressed as a percentage. Comparison of...
- Timesheet Fraud
- The falsification of hours worked, rates of pay, or attendance records to generate a larger payroll payment than is legitimately owed. Includes...
Explained in
- Payroll and Inventory Fraud SchemesInflating the value, volume, or classification of sales transactions to generate a larger commission payout. Methods include recording fictitious sales, miscla...