Choosing Commission Options
Order Entry can calculate commissions earned by salespersons using the data from invoices and credit notes. You can print this information on the Salesperson Commissions report.
Choose from options as follows if you want to calculate sales:
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Specify whether to track commissions by sales or margin. If you choose sales, Order Entry calculates commissions as a percentage of the sales amount. If you choose margin, the calculation is based on the margin amount. You make this choice on the Processing tab in the O/E Options form in Order Entry.
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Use the rates set for the item categories in Inventory Control or use the commission rates set for the salespeople in Accounts Receivable. This is not a choice on the Options form. Order Entry uses the rate specified in the item category record in Inventory Control unless the rate is 0.00 — in which case, it will use the salesperson's rates defined in Accounts Receivable.
Setting up commissions
You must set up your system as follows to calculate commissions on sales of inventory items:
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Select the Track Commissions option on the Processing tab of the O/E Options form. You must also specify the method for calculating commissions (Sales or Margin).
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In Accounts Receivable, select the Paid Commissions option on the Salespersons form for each salesperson who is paid commissions.
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Select the Allow Commissions option for each item category that accrues commission (in the Categories form in Inventory Control).
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See the Inventory Control help for instructions for entering commission rates for categories.
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Assign commission percentages to the item categories in Inventory Control and/or to the salesperson (in the Salesperson form) in Accounts Receivable.
Assigning commission rates to categories
Each item category in Inventory Control can have a single commission rate. If you want to use a different rate, you can change the category for any item when you add it to an order.
Assigning salesperson commission rates
If you use the commission rate structure defined in Accounts Receivable, you can use up to five rates for each salesperson, with each rate applying to a different range of sales amounts (such as to the first $5,000, the next $5,000, and so on).
See also