Product Commission Group Details

You may categorize products into any kind of commission group, such as a commission group for the following:

• Every item in the product file.

• Each item in the product file.

• Each product rank.

• All products in a price line.

Commission groups are not required if you base commission sales on gross profit, sales, or net profit, but you can use commission groups for these options.

When you create a commission group, the system creates a second group by the same name with the suffix "~Direct." This group allows you to set up a different commission plan that the system uses to calculate commissions on direct orders.

The system also creates the DEFAULT and DEFAULT~Direct product commission groups. The system often uses these groups if you calculate commissions on the order total or for products not assigned to a commission group.

Define commission groups in the Valid Product Commission Groupscontrol maintenance record before assigning products to commission groups in the product record.

Assign only one plan for each salesperson per branch, but that plan can include product commission groups that distinguish between the types of products that person sells. For example, for your salesperson named terry, create the commission plan "TERRY."  Terry sells the following products at the listed commission rates:

• Lighting fixtures at 2%.

• Hardware at 3%.

• Plumbing supplies at 4%.

Within the TERRY commission plan, set up three product commission groups called Lighting, Hardware, and Plumbing.

For products that do not have a commission group, set up the system-defined DEFAULT and DEFAULT~Direct product commission groups commission plans.

When you create a commission group, such as PIPE, the system creates a commission group with the same ID using "~Direct" as a suffix, in this case PIPE~Direct. The system uses the Direct product commission groups to calculate commissions on direct sales.

For example, create the commission plan PLUMBING for your plumbing products. This plan contains eight product commission group IDs, three you create, five system-defined that include the DEFAULT and all the "~Direct" commission plans. You define each commission group's GP%, Order Weight, Weight, Sales $ or GP $ ranges, and the commission percent paid on those ranges. The following table shows the commission groups for the PLUMBING commission plan:

Commission plans, commission groups, products, and salespeople are connected in the system shown in the Commission Group Workflow.

See Also:

Assigning Products to Commission Groups