Sales Commission Access Rights
Users with Sales Commission: Manager access can create and configure sales commissions based on different commission types, rules, and conditions.
Sales Commission Menu
Under Sales > Configuration > Sales Commission, managers can view existing commissions and create new commission configurations based on different commission types.
Types of Commission Provided
The Sales Commission module supports four commission types, allowing managers to configure commissions based on different sales conditions:
- Standard Commission
- Partner-Based Commission
- Product/Category/Margin-Based Commission
- Discount-Based Commission
Standard Commission
For a Standard Commission, the manager can set a commission percentage for the selected sales person. The commission is calculated based on the total sales made by that sales person.
Partner based Commission
The Partner-Based Commission allows managers to set different commission percentages based on whether the customer is marked as an Affiliated or Non-Affiliated partner. A partner can belong to only one of these categories.
Product / Product Category / Margin-Based Commission
The Product / Product Category / Margin-Based Commission allows managers to define commissions based on a selected basis, such as product, product category, or margin, and configure the applicable products or categories with their respective commission rates.
Calculation Based on Product
When Calculation Based on Product is selected, the sales commission is calculated based on the unit sale price of the selected product.
Calculation Based on Product Category
When Calculation Based on Product Category is selected, the sales commission is calculated based on the unit sale price of products belonging to the selected product category.
Calculation Based on Margin
When Calculation Based on Product Margin is selected, the sales commission is calculated based on the margin between the product's sale price and cost price.
Sales Commission Calculation Factor
Managers can define the factor used to calculate sales commissions, such as Fix Price, Margin, or Commission Exception, based on the selected commission configuration.
Fix Price
When Fix Price is selected, the sales commission is calculated based on the fixed price defined in the commission exception.
Margin Price
When Margin is selected, the sales commission is calculated based on the margin parameters defined for the product, including target, above-margin, and below-margin commission percentages.
Commission Exception
When Commission Exception is selected, the manager can define a specific commission percentage to be applied to the selected product.
Discount Based Commission
In Discount Based Commission, the manager can define commission rules according to the discount applied to sales order lines. The commission can be configured based on different discount levels.
Managers can configure:
- No Discount Commission % – Commission applied when no discount is given on the order line.
- Maximum Discount % – Maximum discount percentage allowed for the commission configuration.
- Discount > % – Defines the discount threshold for applying a specific commission rule.
- Commission % – Specifies the commission percentage to be applied when the discount exceeds the defined threshold.
Commission rules can be added to define different commission percentages for different discount ranges.
When Discount Based Commission is selected, the manager can configure commission rules for a specific product or product category, allowing different commission percentages to be applied based on the discount given for the selected product or category.
The Commission Based on Product / Product Category wizard allows the manager to select whether the commission rule applies to Products or Product Categories. The manager can then select the applicable product or category and define the Discount % and Commission % for the rule.
If the user enters a Discount Commission percentage that exceeds the configured Maximum Discount %, the system raises a validation warning and prevents the invalid commission rule from being saved.
If the user enters a Commission Rule Discount percentage that exceeds the configured Discount Commission %, the system raises a validation warning and prevents the invalid rule from being saved.
If the user sets the Maximum Discount % lower than the configured Discount Commission %, the system raises a validation warning and prevents the invalid commission configuration from being saved.
Sales Commission Conditions Configuration
Here, managers can configure the conditions based on which sales commissions are calculated for salespersons. The commission can be calculated using three different methods, allowing businesses to define the calculation approach according to their commission structure.
Commission based on Sales Order
When Sales Order is selected as the commission calculation condition, the commission for the related salesperson or sales manager is calculated when the sales order is confirmed.
Commission Based on Invoice
When Invoice is selected as the commission calculation condition, the commission for the related salesperson or sales manager is calculated when the invoice is validated.
Commission Based on Payment
When Payment is selected as the commission calculation condition, the commission for the related salesperson or sales manager is calculated when the invoice is paid.
Commission Based on Sales Order
When the commission condition is set to Sales Order, the commission for the salesperson is calculated when the sales order is confirmed. The generated sales commission lines can be viewed under the Sales Commission tab on the sales order form.
Commission Based on Invoice
When the commission condition is set to Invoice, the commission for the salesperson is calculated when the invoice is validated. The generated sales commission lines can be viewed under the Sales Commission tab on the invoice form.
Commission Based on Payment
When the commission condition is set to Payment, the commission for the salesperson is calculated when the invoice is paid. The generated sales commission lines can be viewed under the Sales Commission tab on the invoice form.
Return Order with Commission
If a sales order is returned, the commission generated for that order is automatically cancelled. This ensures that commission records remain aligned with the actual sales transactions.
When the user clicks the Return button, a new return order is generated for the delivered products. This allows the returned quantities to be processed and tracked separately from the original delivery order.
When the user validates the return order, the commission line associated with the original sales order is automatically cancelled. This ensures that commissions are accurately adjusted when products are returned.
Sales Commission Analysis
The Sales Commission Analysis report allows users to analyze commissions generated for each salesperson. It provides a detailed view of commission records, helping users track and evaluate sales commission performance.
Sales Commission Analysis Report
The Sales Commission Analysis Report allows users to generate a detailed commission report for a specific date range and salesperson.
The report provides commission details such as the commission date, sales reference, commission type, commission name, product, partner, and commission amount.
Commission Lines Menu
Under Sales > Configuration > Commission Lines, users can view all generated commission lines. The list provides an overview of commission details, including the salesperson, sales order or invoice reference, commission type, product, partner, and commission status.
Create Invoice
Users can generate invoices directly from commission lines by selecting the required commission lines and grouping them by Sales Person. After selecting the grouping option, click Create Invoices to generate the commission invoice.
When commission lines are invoiced, the configured Commission Account is automatically added to the generated vendor bill. This ensures that commission expenses are recorded under the appropriate accounting account.
If the user selects commission lines belonging to different salespersons and enables the Group By option while creating an invoice, a validation warning is raised. This prevents commission lines from different salespersons from being incorrectly grouped into the same invoice.
If the user tries to create an invoice from a cancelled commission line, a validation warning is raised. This prevents cancelled commission entries from being included in a new invoice.
