Calculating Commissions
Order Entry calculates commission amounts on invoices and credit notes during Day End Processing, and adds them to the commissions already accumulated for salespeople.
To calculate the commission, Order Entry checks:
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That the salesperson earns commissions.
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That the item is commissionable.
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Whether the item's category has a rate. If not, Order Entry uses the salesperson's rates.
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Whether the commission is paid on the sales amount or the margin.
Commissions are earned on invoiced sales amounts or on margin amounts. If commissions are calculated on margin, the program uses cost figures in Inventory Control to determine the commission earned.
Commission periods. Order Entry accumulates commission information until you clear the Salesperson Commission Report. In other words, the commission period is the length of time between clearing reports. The last report you print before clearing data (using the Clear History form) contains the commission amounts due salespeople for the period.
Turning off commission tracking. You can turn the Track Commissions option on or off at any time. If you turn off the option after you have used it, Order Entry immediately stops calculating sales commissions, although it retains those already collected until you clear them using the Clear History form.
If you turn on the option again, there will be a gap in the collected information corresponding to the period when the option was not used.
See also