Setup Commissions Add Commission to Parts Setup Sales Assign Commission and Sales Person

Commission

The Commission module was added so you can track the commission by part and salesperson. To have your sales team receive commissions on parts sold, you have to:

  • Setup the commissions

  • If necessary, select the parts that you have to apply a commission to

  • Setup the sales team

  • Assign the salesperson and the commission to the customers

Once these steps are complete, when you add a sales order, the salesperson for the customer will receive the selected commission on the desired part once the invoice for the sale is processed.

The Sales > Sales Order > Commission folder contains screens and reports that are used to set up commissions and commission expenses, and update commissions on sales orders and invoices. The screens available for the Commission module are:

  • Commission Maintenance [S2901] is used to set up the commission codes, types, and parts the commission is applied to, if any.

  • Update Sales Order Commission [S2902] is used to update existing sales orders with a new salesperson and rate information.

  • Commission Expense [S2903] is used to accrue and pay out commissions to select salespersons.

  • Update Invoice Commission [S2904] is used to update existing invoices with the new salesperson and rate information.

Once the commission code is set up on Commission Maintenance, you can add the commission to parts, sales orders, or customers.

Commission Setup

On Commission Maintenance, you can setup the commission to vary according to certain preset values. You can set up a commission based on the amount of time after production starts or the quantity sold. There is also a calculation type, where you can pay a commission based on the percentage of the part cost, or as a value for each piece sold.

Considering the Type and Calculation, you can add a commission detail, where the value paid changes after a certain value.

Once the code and the detail are setup, you can add a commission to a part. This will create a commission line for the part based on the type and detail. When a sales order is created that includes the part, the commission will automatically be calculated.

You have a new part available to sell. To encourage your sales team, you set up a commission for the part. However, as time passes, selling the part should be easier, and as such, you want to vary the commission paid. To do this, you create the following commission code:

  • Code: 10/5/0

  • Description: 10% for 2 years, 5% for 5 years, 0 after that

  • Type: YRS

  • Calculation: PERC

Then, you add the following detail lines:

From To Value
0 2 10
3 7 5
8 99 0

With the lines added, under the Commission Part frame, you select the desired Part, set the Start Date, and click Add Commission.

This will automatically create 3 new part lines, with the time set to the desired years.

Adding Commissions to Customers, Sales Orders, or Parts

Commissions are added to a customer, to sales orders, and to parts.

Salesperson is added to customer, and sales orders.

If a salesperson is assigned to a customer, that salesperson is added to any sales orders created for that customer by default. This can be updated for the whole sales order, or for each separate sales order line item.

Commissions are added to parts on the Commission Maintenance screen. This means that whenever a sales order is created for that part, the salesperson on the sales order line item will receive the set commission for that part once it is invoiced or once the sales order is processed and accrued via Commission Expense.

Commission codes and salespersons are added to customers on the Customer Master screen. This will set the default commission and salesperson for any sales made to this customer.

Viewing Commission

Commissions are accrued on sales order detail lines once the sales order items have been invoiced and finalized.

You can view the commission value and the accrued value on Customer Invoice [S2873].

Processing Commissions

Once invoices are finalized, you can accrue and process outstanding commission payments on Commission Expense [S2903].

Mass Updates to Commissions

Use screens Update Sales Order Commission [S2902] and Update Invoice Commission [S2904] to update the commission and salesperson information for sales orders and invoices, respectively.

Commission Reports

Use Commission by Salesperson and Date [R1110] to display all commissions earned. It defaults to show commission paid. Commission by Commission Code & Date [R1111] displays data in a different format.

  • To see what commissions have to be accrued, add the filters as follows:

  • To see what commissions have been accrued, but not paid, add the filters as follows:

Use Commission Code by Open Sales Order [R1112] to ensure that no parts are missing and are linked to the correct commission code.

Commission by Invoices [R1113] is used to display invoice detail, the salesperson, and the commission code for the invoice line item, if any.

Notes

  • Updating the Start Production date on Part Master [S1009] will update the Start Production date on all the commission screens for that part.

  • If the part has already been assigned a commission code and the invoice date is not in the defined range. The code will be updated but the commission value will be zero.