How to process sales documents

Order Processing

The following process describes details that relate to the Commissions processing part of a sales order to cash process. It will not describe details on the order entry itself. All described elements are the same for sales orders and sales invoices.

Order Entry

When a sales order is created and a customer is assigned, the salesperson and the salesperson split on the customer will be copied to the sales order. You can change the associated salespeople for each order. Changing the salespeople involved in this order is done by selecting the action “Salesperson Commission Split” (Navigate > Order > Salesperson Commission Split). Only if you are commission manager, you can see and make changes to the salesperson setup. If not, you can see your own information, but cannot see any other salespeople’s setup. 

The “Salesperson Split” page opens. It shows the configuration that is setup on the customer or Ship-to Address, in case there is a setup on the Ship-to Address. You would then click on “Edit List” and can delete the row or update the Split. You can also select “New” to add additional salespeople.

Start Date

This column is not necessary to be entered for a specific sales document. When defined on the customer level, it allows the timed change of salespeople for a customer. The Commission Effective Date determines which salespeople would be valid for this customer.

End Date

This column is not necessary to be entered for a specific sales document. When defined on the customer level, it allows the timed change of salespeople for a customer. The Commission Effective Date determines which salespeople would be valid for this customer.

Salesperson Code

Select the salesperson from a list or enter the salesperson code. This will define the salespeople that are involved in this sale.

Split

The split defines the percentage of the commissionable amount for this sale that is going to be used to calculate the commission for a sale. If you want to share the sale between multiple salespeople, you can define the percentage of each salesperson here, totaling to an amount of 100 percent. 

If you want to add multiple salespeople that all get commission for the entire sale, you must define “100” as the split for all salespeople.

Salesperson Name

This is a read-only column showing the name of the salesperson entered.

Location Code

You can define different salespeople getting commission for different products shipped from a specific warehouse. 

Once you enter the sales lines, the commissions are calculated on the fly. If the item, resource, or general ledger account are set to commissionable, you can then view the commissions by selection the action “Commissions” (Navigate > Order > Commissions). If you are a commission manager, you can see all commission calculations and can make changes to them. If not, you can see only your own commissions.

The Sales Commission page opens. This page shows general information about the customer, the total “Commissionable Amount”, and the “Commission Amount”. In the Sales Commission Lines, you can see the details about each sales line and what the commission calculation is for each of those lines. You can also make changes to those calculations, if you are a commission manager.

Salesperson Code

The salesperson that is receiving commission.

Salesperson Name

The name of the salesperson. This field is not editable.

Commission %

The commission percentage. The commission is calculated with the following formula: Commission Amount = Commissionable Amount * Commission Percentage

Amount Type

The Amount Type defines, if the commission is calculated as a percentage or if it represents a fixed amount.

Base %

The Base % is defined by the Salesperson Split. It defines the amount of the total Commissionable Amount is used to calculate the commissions.

Commissionable Amount

The commissionable amount is calculated differently whether the commissions are calculated based on Gross Profit or the Sales Amount or the Quantity. Depending on the salesperson split configuration, the commissionable is a percentage of the total amount.

Commission Amount

The Commission Amount shows the amount that will be paid to the specific salesperson.

Document Line Type

The Document Line Type shows the type on the sales line that this commission is calculated for.

Doc. Line Type No.

The Doc. Line Type No. defines the details for the sales line that the commission is calculated for.

System Created

If the commission has been calculated automatically, this field will contain a check mark. If not, the commission has been entered or changed manually.

If you make any changes to the commissions, or make changes to the commission setups after the order was created, you can refresh the commissions by selecting the action “Calculate Commissions” (Navigate > Order > Calculate Commissions). Since the commissions are calculated automatically at the time of order entry, you will not have to perform this action, unless you make any manual changes.

Order Processing

If Commissions are payable at the time of order entry, Commission Ledger Entries are created at the time of releasing the order. If this is not done manually, the order is automatically released right before posting. Commission Ledger Entries are the base for the actual commission processing and payment of commissions. You can find more details about the Commission Ledger Entries page here.

If Commissions are payable at the time of Shipment, the posting of the shipment will create Commission Ledger Entries. If Commissions are payable at the time of Invoice or Cash Receipt, the Commission Ledger Entries are created at the time of posting the invoice. The Commission Ledger Entries have a status defining, if a commission is already due to the salesperson or not.

Posted Sales Invoices

The same pages “Salesperson Commission Split” and “Commissions” are available also on the posted Sales Invoices. They can be used to review the commission calculations for this document. If you are a commission manager, you can review commissions for all salespeople, if not, you will only see your own commissions.

Credit Memo Processing

Processing of credit memos follows the same steps as the above described order processing. However, you can also create a credit memo by copying a posted invoice or getting individual lines. At this time, the commission data is copied back from the original document so that the same commissions will be credited.

Commissions for credit memos will become “payable” as soon as they are posted. They will reduce the salesperson commission for the specific period.