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 Rules

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 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.

Commission Rates Page

Customer Type

  • blank –  Rates defined with a blank customer type are valid for all customers

  • Customer Discount Group – Rates are valid for all customers that have this customer discount group assigned.

  • Customer Price Group – Rates are valid for all customers that have this customer price group assigned 

  • Customer – Rates are only valid for this specific customer. 

Customer No.

Depending on the “Customer Type”, this field defines the customer discount group, the customer price 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.

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 or Item Categories. 

  • Resource – The defined rate will be valid for one or all Resources or Resource Groups. 

  • Item Charge – The defined rate will be valid for one or all item charges.

Entity Subtype

If the “Entity Type” is set to Item or Resource, you can select “Category” in this field to define rates for resource groups or item categories .

No.

If the “No.” is left blank, the rate will be valid for all records in the defined “Entity Type” and “Entity Subtype”. If a code 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.

Line Discount %

The rate is valid, if the line discount percentage of the current sales line is the same or greater than the percentage defined here. This allows the definition of decreasing (or increasing) commissions depending on the discounts given.

Commission Base Amount

This field allows the definition on how the commissionable amount is calculated. The commissionable amount is the basis to which the commission rate will be applied.

  • Line Amount – The line amount will be used as the commissionable amount.

  • Unit Cost – The unit cost defined on the sales line will be used as the commissionable amount. 

  • Unit Price – The unit price defined on the sales line will be used as the commissionable amount. 

Gross Profit %

Different commission rates can be defined, if the Gross Profit percentage of the current sales line has reached the percentage defined in this field.

Commission Rate Type

This field defines, if the commission rate is a percentage of the commissionable amount or a fixed amount.

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.

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.