Commission Rate Setup
Commission Rates can be setup from different places. You can access the following page from the Salesperson Group, Salesperson, Customer, Item Category, Item, Resource, G/L Account, and Item Charge. The commission rates are the rules that are in place to calculate commissions for your salespeople.
Commission rates can be defined by Salesperson Group, Salesperson, and also for all salespeople. The system will first determine, if there are any valid rules for the specific salesperson. If not, the system will look for the salesperson group that is defined on the salesperson, if one is defined. If no valid rates are found here either, the system will search for commission rates defined for all salespeople (Salesperson Code is left blank).
To determine valid commission rates, the system will only consider commissions that are valid for the defined Commission Effective Date. Within this date range, the system will determine first, if there are rules defined for the Customer. If not, the system will search for the Commission Group, Customer Price Group and then Customer Discount Group defined on the customer, and if none are found there, the system will search for commission rates defined for all customers.
Depending on the type of line, the system will look for rates defined for G/L Accounts, Resources, Item Charges, or individual items. If the line contains an item, first the system reviews, if there is a rate defined for the individual item. If not, the system will review, if there is a rate defined for the specific item category defined on the item.
Some of the fields shown below might not be visible depending on the features that you have selected to be enabled in the Commission Setup. The caption for the Global Dimension 1 Code and Global Dimension 2 Code will be the captions defined on the Code Caption in the Dimensions Setup for the two global dimensions.
|Customer Type||- blank: Rates defined with a blank customer type are valid for all customers
- Customer Discount Group: Rates are valid for all customers with this Customer Discount Group
- Customer Price Group: Rates are valid for all customers with this Customer Price Group
- Commission Group: Rates are valid for all customers with this Commission Group
|Customer No.||Depending on the Customer Type, this field defines the Customer Discount Group, the Customer Price Group, Commission Group, or the Customer number the rate is valid for.|
|Ship-to Code||If a Ship-to Code is defined, rates are only valid, if the product is shipped to this ship-to address.|
|Salesperson Code||The salesperson that will receive the commission defined here. If the Salesperson Code is left blank, the rate will be valid for all salespeople.|
|Salesperson Name||Displays the name of the salesperson|
|Global Dimension 1 Code||If a dimension value is defined, rates are only valid, if the sales transaction has this dimension value defined for the first global dimension.|
|Global Dimension 2 Code||If a dimension value is defined, rates are only valid, if the sales transaction has this dimension value defined for the second global dimension.|
|Entity Type||- blank: If the Entity Type is left blank, the rate will be valid for all Items, G/L Accounts, Resources, and Item Charges.
- G/L Account: The defined rate will be valid for one or all G/L Accounts
- Item: The defined rate will be valid for one or all Items.
- Resource: The defined rate will be valid for one or all Resources.
- Item Charges: The defined rate will be valid for one or all Item Charges.
- Item Category: The defined rate will be valid for one or all Item Categories.
- Resource Groups: The defined rate will be valid for one or all Resource Groups.
|No.||If the No. is left blank, the rate will be valid for all records in the defined Entity Type. If a No. is defined, the rate will only be valid for the specific record defined.|
|Starting Date||If a Starting Date is defined, the rate will only be valid, if the Commission Effective Date is the same or greater than the Starting Date.|
|Ending Date||If an Ending Date is left blank, the rate will only be valid, if the Commission Effective Date is the same or less than the Ending Date.|
|Minimum Amount||Defining a Minimum Amount allows the definition of tiered commissions or Hockey Stick commissions. The rate will only be valid, if the calculated amount (based on the time frame and the amount type defined on the Salesperson Card) is the same or greater than the amount defined here.|
|Minimum Amount Type||- Amount: The Minimum Amount defines a sales amount.
- Line Discount %: The Minimum Amount defines a minimum line discount amount.
- Gross Profit: The Minimum Amount defines the minimum gross profit.
- Gross Profit %: The Minimum Amount defines the minimum gross profit percentage.
- Sales Growth: The Minimum Amount defines the minimum period over period growth.
|Recalculate Commissions||If this field is checked, the commission rates for already posted transactions within the period for the tiered commissions will be recalculated and updated to the new commission rates. This will not be done automatically, but can be processed through a report. Read more about Recalculating Commissions|
|Recalculate Conditions||You can define conditions based on the commission ledger entries. You can filter, for instance, on commissions calculated for specific item categories.|
|Recalculate Comm. Min. Amount||This minimum amount is used to determine, if the commission rates are recalculated for posted transactions or not. The amount in the commission ledger entries in the filter defined in Recalculate Conditions will be compared to this field.|
|Recalculate Comm. Min. Amount Type|
|Commission Rate||The commission rate is the actual percentage that is used to calculate the commission, if the Commission Rate Type is set to Percentage. The calculation is: Commissionable Amount * Commission Rate / 100 = Commission Amount.
If the Commission Rate Type is a Fixed Amount, the Commission Rate defines this amount.
|Commission Rate Type||- Percentage: Defines that the Commission Rate is a percentage.
- Fixed Amount: Defines that the Commission Rate is a fixed amount.
|Generic Rate||If the field Generic Rate is checked, the rate defined for the salesperson is always used to calculate a commission, for the specific entity, even if the Salesperson is not defined on the sale at all. This can be used to give, for instance, product managers a certain commission whenever one of their items is sold.|
|Initial Rate||Defines whether the rate defined will be valid for the initial purchase of a customer or for all subsequent purchases.|
|Maximum Commission||Based on the Maximum Commission Timeframe, the Maximum Commission amount defines the maximum commission that a salesperson will be paid out in that period.|
|Maximum Commission Timeframe||Defines the timeframe that is used to calculate the commission paid in the period to determine, if the next commission is above the Maximum Commission. The possible values can be Day, Week, Month, Quarter, or Year.|