Commissions are monetary amounts paid to sales representatives for their work associated with sales orders. Commissions amounts are calculated when invoices are created, or when invoices are paid by customers.
The Customer Service module’s Commissions menu contains menu items necessary for creating a complete commission structure. You can define the following:
Commission Book - Defined to group together similar customers. Commission books are created in Commission Book Maintenance. Commission books can be associated with customers in Customer Maintenance.
Commission Class - Defined to group together similar products. Commission classes are created in Commission Class Maintenance.
Commission Group - Defined to group together similar sales representatives. Commission groups are created in Commission Group Maintenance. Commission groups can be associated with sales representatives in Sales Representative Maintenance.
Commission Rate - Defined to combine a commission rate with any combination of:
Sales Representative or Commission Group
Customer or Commission Book
Product or Commission Class
Example A commission rate of 3% is structured with commission group 1, commission book AA, and product xyz. This suggests sales representatives belonging to commission group 1 that sell product xyz to customers that belong to commission book AA will receive a 3% commission for such sales.
To view commission reports for sales representatives based on general ledger accounting periods or calendar dates, use Commission Inquiry and Commission Report.
NOTE The order of resolution for commission rates is set up on the Cost/Pricing tab in Customer Service Control Maintenance. This determines how a sales representative will attain commission for a sale (and how a commission reduction will be processed for returns).
For more information on commission structures, see Commission Structure.