Tuesday 21 September 2021

Differential Income Calculation ..An example to create awareness.

1. Suppose your personal order with 3pc is 100 pv and first team volume is 600 Gpv, 2nd team volume is 1500 Gpv, 3rd team volume is 1000 Gpv, 4th team volume is 2000 Gpv. What will be your Differential income. ( Note : This is a test of only differential income, no trade discount, no CSI )

Calculation :

My total Group PV = 100+600+1500+1000+2000 =5200pv = 15%

First team =600pv =6%
Differential income =15-6=9% of 600 pv = 54pv
Second team = 1500 pv =9%
Differential income =15-9=6% of 1500 pv = 90pv
3rd team = 1000pv=6%
Differential income =15-6=9% of 1000 pv = 90 pv
4th team =2000 pv =9%
Differential income =15-9=6% of 2000 pv = 120pv

Total Differential income only in PV = 54+90+90+120= 354 pv X 80 = Rs 28320.

(Trade discount and other core plus incentive has been excluded in this calculation. It is only Differential income Calculation)

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