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Overview

In order entry Commissions are calculated on a line item basis. A customer will have a default salesperson attached to them that will populate into the order entry screen. Whether this salesperson is changeable, changeable with a mangers override or locked is a setup function that is controlled in the module setup screens. There are several factors to consider when looking at an orders commission.
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Detail

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Commission Calculation – This is how the amount of commission is calculated per line item on an order. With some setups this can be edited on the order but with others it will default in. There are two levels of commission calculations or for lack of a better term; a default calculations hierarchy.

  • Level #1 – In the order above items 2 and 3 there was a specific commission amount set up for those items in the ORD > Salespersons and Commissions > Item Commissions Entry. Whenever there happens to be a specific commission assigned to an item it will override the default from Order Entry Setup. This function can be used if you would like to assign a higher commission to promote an item as in a spiff or to move dead inventory. Items assigned commissions will trump all.

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    • Level # 2 – When an item does not have a specific Commission Calculation assigned to it TRX will default to the "Default Commission Calculation" that was set in Order Entry Setup screen. Therefor in this example the percent of gross margin was entered automatically. This is the most common way to attach the commission calculation to a sale.

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    It is important to note that this is only for how the commission will be calculated this does not affect whom it goes to and what percentage that will be used. Image Removed

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    • GM Modifier – The Gross margin Modifier is a way to add a load to a commission. Some companies that pay out large commission percentages will add a load (charge) to the commission that goes to the company. You set a default Gross margin Modifier in Order entry setup.

      • Example – company A will pay out 30% commission on a sale but the will charge the salesperson a 2 point load on their commission for administrative charges. Therefor the order will figure the commission at 28% instead of thirty. (The 2% will not be diverted to a load GL account it is simply not calculated.)

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    • Amount or % - This is the field that controls how much commission a salesperson will get. The commission percent or amount (it can be a dollar amount) will get populated with the same hierarchy as commission calculations, with one addition. If there is no Item commission set and the salesperson does not have a commission percent declared in the salesperson setup screen TRX will look to the "Default Commission Percent" in Order Entry Setup.

    There for commissions are calculated as follows:

    • By the items assigned percentage. -If none exists

    • By the salespersons assigned Percentage. -If none exists

    • By the default percentage setup in Order entry Setup

    • Commission – This box has the total commission for the line item, that total will show up on the commission reports. If the system is set to use multi-salespeople then this is the number that will get divided between the salespeople at their assigned percentage.