Explanation: Commission tables allow you to have the system automatically calculate a salesperson’s commission percent, on a sliding scale instead of a flat rate, on a quote, order, or invoice. This calculation can either be based on the profitability of commissionable products or on a salesperson's YTD invoiced sales.
Multiple commission tables may be set up (possibly for different types of orders or for individual salespeople). However, a commission table may be assigned to multiple salespersons.
How do You add a Commission Table?
When adding a commission table regardless of the Based-on type, you will need to add levels.
To add a level, you simply click on the Expander for the Commission Table Ranges, then click +Add Commission Range.
For a Commission Table based on YTD (Year to Date) Sales, your levels will be based on the amount of sales the Salesperson has had Year to Date. The beginning level will start with 0.00 and the last level will end with $99,999,999.99. This will ensure that any dollar amount will have an associated commission %. Unlimited ranges may be setup. Each range will contain a commission %.
For a Commission Table based on Gross Profit, the beginning range will start with 0.00% and the ending range will end with 99.99%. This is to ensure that all Gross Profit % will have an associated commission %. Unlimited ranges may be setup. Each range will contain a commission %.
How do You add a commission table to a Salesperson?
A commission table may be assigned to a salesperson within their salesperson resource. When the salesperson is then added to a customer, quote, order, invoice or program, the commission table will default in also. However, if a salesperson resource does not contain a commission table, it may be manually added to the salesperson record within a customer, quote, order, invoice, or program.
Note: When assigning a commission table to a salesperson, you will still want to assign the salesperson a default commission percent greater than 0.00 as 0.00 will be considered non-commissionable and the table won’t be read.
Upon saving the record (or processing the invoice), the program will check to see if any salespersons have been assigned a commission table. Based on the type of commission table, each salesperson’s commission percent will be checked and determined if a change is needed.
Note: For the commission recalculation to occur for either commission table type (GP% or YTD Sales), the commissionable products/charges must originally have a commission percent greater than 0.00 as any products/charge with a 0.00 percent will be considered non-commissionable.
If a product/charge has a 0.00 commission percent, it will not change with the recalculation and will remain at 0.00 commission percent. If all products have a 0.00 commission percent, the commission on the quote/order/invoice will not be recalculated, even if there is a commission table assigned.
Commission Calculation Based on GP% Table - The gross profit for all products and additional charges which have a commission percent greater than 0.00 will be accumulated to determine the commissionable gross profit %. Products will a 0.00 commission percent will be ignored.
If the new commission % is different than the commission % existing on a product, the percent on all commissionable products/charges will be changed to the new percent. A window will appear notifying you of the new commission percent.
Commission Calculation Based on YTD Sales Table – Each quote, order, or invoice contain a date (quote date/order date/invoice date). Based on that date/time (all the way to midnight), the salesperson’s YTD Sales will be accumulated (from the beginning of that calendar year) and checked against the Comm Table to see if the Comm% should be changed.
The final commission percent will be determined by the invoice date, once the in-voice is created.
Example: A quote is entered on March 15th. The salesperson’s YTD sales will be determined by invoiced sales between January 1st and March 15th. That quote is turned into an order on April 12th. The salesperson’s YTD sales used to determine the order’s commission percent will then be determined by invoiced sales between January 1st and April 12th, so the commission percent may change. Then, on June 20th, the order has an invoice created. The salesperson’s YTD sales used to determine the invoice’s commission percent will then be determined by invoiced sales between January 1st and June 20th.
Once you have added a Commission table to a Salesperson Resource you may wish to update current orders and customers, so this new table is used.
Use this function to update Order or Customer resources commission rate.