How to pay Manager Commissions
If you want to pay your sales managers commissions, you can do this in a few different ways, depending on the commission policies that you have in place. You can pay commissions for every single sale that the sales team makes, you can pay a percentage of the total sales, you can pay bonuses, and you can have various tiered commission rates based on the sales amount during a given period of time.
Defining a sales team
Each sales manager can have one or multiple sales teams defined. When a sales team is defined, the combined sales of this team will be used to determine the commission that will be paid to the sales manager. You can define a sales teams a manager is responsible for when you choose the action Associated Salespeople from the Salesperson/Purchaser Card (Salesperson > Associated Salespeople). This allows you to select the individual teams that the manager is responsible for. Each salesperson must be added to a team, before their sales is counted into the sales for a manager.
Defining time periods
If you setup tiered commissions for your sales managers, for instance, you want to pay a certain percentage when the sales team sells at least a certain amount in a month, you need to define the time period. You can define the measurement that you want to use to define the different tiers in the field Minimum Amount Type on the Salesperson Card. You can use the total sales amount in the time period or you can pay different commissions based on the growth of sales period over period. You can find more details about the different available setups on the Salesperson Setup.
Defining Commission Rates
Once you defined the sales team and the periods, you can define commission rates. Commission rates are defined through Manager Amounts accessible from the Salespeople/Purchaser List (Salesperson > Manager Amounts). You can define a percentage or a fixed amount that will be paid, if the Minimum Amount is reached. If the minimum amount entered is zero, the rate will be paid for all sales. More details are described on the Manager Commission Page.
Paying Commissions for certain Items, Resources, G/L Accounts, or Item Charges only
Instead of paying commissions on all sales, you can also define commissions that are paid only on specific items, resources, G/L accounts, or item charges. This can be used for sales managers just like any other managers, such as product managers, who receive a commission if one of their products is sold. You can define this in the normal commission rate setups, if you define the commission rate as a Generic Rate. A Generic Rate defines that the salesperson receives commission, even if the salesperson is not defined as a salesperson involved in a specific sale. More details on Generic Rate setups can be found in the Commission Rate Setup.