Commissions are fees paid to salespeople based on the amount of merchandise they sell. How much they are paid depends on the plans to which they are assigned, if the products have commission plans, and how commission groups are set at the branches.
Use Commission Plan Maintenance to create and edit commission plans that determine the amount of commissions paid to each salesperson.
A commission plan contains all the data to calculate commissions and are assigned to sales personnel. A commission plan works in a specific hierarchy and are assigned to a sales order overrides a commission plan assigned to a customer, which overrides a commission plan assigned to a salesperson.
Create plans for different salespeople, such as showroom sales, inside sales, outside sales, and counter sales. Commission payments are based on the way the system totals prices on sales orders:
Gross profit dollars
Sales dollars
Net sales dollars
You can deduct unbilled freight from commission plans at the line item level, if needed, and decide if you want that freight deducted for only cost-related items, or if you want to include zero-dollar line item commission sales. This flexibility allows you to pass on that unbilled freight cost, as needed. The Commissions Report displays these line items individually for your review.
A commission group is a specific types of commission plan. A commission group organizes products into categories so that you can have the commission plan pay only that specific commission for the products assigned to the group. These groups help you customize the commission plans for your products and salespeople to pay commissions accordingly.
For each salesperson drawing commissions, you can analyze their draw amounts and adjust, if needed. This means you can pay sales personnel drawing against their future commissions.
See Also:
Setup Requirements for Commission Plan
Assigning Products to Commission Groups