How to process sales documents
Quotes, Orders, and Invoices
The following process describes details that relate to the Commissions processing part of a sales quote to cash process. It will not describe details on the quote or order entry itself. All described elements are the same for sales quotes, sales orders, and sales invoices.
Quote Entry
When a sales quote is created and a customer is assigned, the salesperson and the salesperson split on the customer will be copied to the sales quote. You can change the associated salespeople for each quote. Changing the salespeople involved in this quote is done by selecting the action Salesperson Commission Split. You can access this action by going to Navigate > Quote > Salesperson Split. Only if you are commission manager, you can see and make changes to the salesperson setup. If not, you can see your own information, but cannot see any other salespeople’s setup.
The Salesperson Split page opens. It shows the configuration that is setup on the customer or Ship-to Address, in case there is a setup on the Ship-to Address. You would then click on “Edit List” and can delete the row or update the Split. You can also select New to add additional salespeople.
Once you enter the sales lines, the commissions are calculated on the fly. If the item, resource, or general ledger account are set to commissionable, you can then view the commissions by selection the action Commissions (Navigate > Quote > Commissions). If you are a commission manager, you can see all commission calculations and can make changes to them. If not, you can see only your own commissions.
The Sales Commission page opens. This page shows general information about the customer, the total Commissionable Amount, and the Commission Amount. In the Sales Commission Lines, you can see the details about each sales line and what the commission calculation is for each of those lines. You can also make changes to those calculations, if you are a commission manager.
If you make any changes to the commissions, or make changes to the commission setups after the quote was created, you can refresh the commissions by selecting the action Calculate Commissions (Navigate > Quote > Calculate Commissions). Since the commissions are calculated automatically at the time of quote entry, you will not have to perform this action, unless you make any manual changes.
Quote to Order
When the quote is accepted and an order is created using the Make Order action, the commission splits as well as the commission lines are copied from the sales quote to the sales order. They can be manually changed on the sales order.
Quote to Invoice
When the quote is accepted and an invoice is created using the Make Invoice action, the commission splits as well as the commission lines are copied from the sales quote to the sales invoice. They can be manually changed on the sales invoice.
Order Entry
The general process of the order entry is the same as described above for the Quote Entry.
Order Processing
If Commissions are payable at the time of order entry, Commission Ledger Entries are created at the time of releasing the order. If this is not done manually, the order is automatically released right before posting. Commission Ledger Entries are the base for the actual commission processing and payment of commissions. Learn more details about the Commission Ledger Entries page.
If Commissions are payable at the time of Shipment, the posting of the shipment will create Commission Ledger Entries. If Commissions are payable at the time of Invoice or Cash Receipt, the Commission Ledger Entries are created at the time of posting the invoice. The Commission Ledger Entries have a status defining, if a commission is already due to the salesperson or not.
Posted Sales Invoices
The same pages Salesperson Split and Commissions are available also on the posted Sales Invoices. They can be used to review the commission calculations for this document. If you are a commission manager, you can review commissions for all salespeople, if not, you will only see your own commissions.
Credit Memo
Processing of credit memos follows the same steps as the above described order processing. However, you can also create a credit memo by copying a posted invoice or getting individual lines. At this time, the commission data is copied back from the original document so that the same commissions will be credited.
Commissions for credit memos will become “payable” as soon as they are posted. They will reduce the salesperson commission for the specific period.
Return Orders
Return orders can be entered and Commissions will be calculated when return orders are processed. Return order processing follows the same steps as the above described order processing. However, commissions are not calculated until the credit memo is posted as the final result of the commissions depends on the actual quantity returned and the actual transaction the return order is applied to. Those tasks are usually finalized after the inventory has been received back and before the credit memo is posted for the return order.