How to Process Commission Draws

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Once you have completed the sign up and your tenant is up and running, you can add the NAV-X Commission Management app from the AppSource Marketplace. If you have questions about the installation process of an app through Microsoft AppSource, you can find more information on installing apps on the Microsoft Docs site.

A commission draw — sometimes called a "draw against commissions" — is a minimum guaranteed payment made to a salesperson each period. If the salesperson's earned commissions for the period are less than the draw amount, the system pays the draw amount and records the difference as a debt against future commissions. When earned commissions exceed the draw amount, the salesperson receives only the earned amount; no additional draw payment is made.

Prerequisites

Before processing commission draws, ensure the following are configured in Commission Setup:

  • Commission Draw Reason Code must be defined on the Reason Codes FastTab. This reason code is used to identify draw entries in the Commission Ledger Entries.
  • Document No. for Commission Draws must be defined on the Commission Processing FastTab. This controls the numbering of payment documents created for draws.
  • The salesperson must be enabled for Commission Management on the Salesperson Card.

Step 1: Configure the Salesperson Card

For each salesperson who should receive a commission draw, open their Salesperson Card and fill in the draw fields:
Commission Draw Amount The minimum guaranteed commission amount per period.
Commission Draw Period The frequency of the draw: Day, Week, Month, Quarter, or Year.
Commission Draw Start Optional. The date from which the draw begins. Leave blank to apply immediately.
Commission Draw End Optional. The date on which the draw expires. Leave blank to apply indefinitely.
Pay Commission Draw When enabled, the system automatically creates a payment document for the draw amount: a Purchase Invoice for vendor-type salespeople, a Sales Credit Memo for customer-type salespeople, or an Employee Journal line for employee-type salespeople.

Step 2: Run Commission Draw Processing

The Commission Draw Processing report evaluates all eligible salespeople for a given date range and posts draw entries where earned commissions fall short of the draw amount.

  1. Choose the Tell me what you want to do icon, enter Commission Draw Processing, and choose the related link.
  2. Set the Start Date and End Date to define the period you want to process.
  3. Optionally, use the Salesperson/Purchaser filter to process only specific salespeople.
  4. Choose OK to run the report.

The report performs the following actions for each eligible salesperson:

  • Checks the total draw entries already posted for the period by looking for Commission Ledger Entries with the Commission Draw Reason Code.
  • If the draw has already been fully posted for the period, the salesperson is skipped.
  • If the draw has not been fully posted, the report posts the difference as a Commission Journal entry using the Commission Draw Reason Code.
  • If Pay Commission Draw is enabled on the salesperson, the report also creates the appropriate payment document and marks the draw entry as Paid.
Note

Draw entries are identifiable in Commission Ledger Entries by the Commission Draw Reason Code configured in Commission Setup.

Important

Run Commission Draw Processing after you have processed regular commissions for the period so that the system can compare the draw amount against the actual earned commissions.

See Also