Sales Commission Setup overview

Sales > Setup > Commission

Function acronym: OESC

Use this function to create and maintain commission types for all sales representatives or an individual sales representative.

You can set up multiple commission plans per sales representative. You can also set up specific rates to pay when splitting commission between inside and outside sales representatives. The commission targets can be based on sales amount, margin amount, margin percent, quota percent, or can be left blank. The actual calculations of the commission amounts can be based on gross, net, or margin.

The interval used to calculate commissions can be monthly, quarterly, yearly, or on an order or line item basis. The commission amounts calculated on a monthly, quarterly, and yearly basis are stored on each record along with the amounts used to determine target levels.

Commission Setup records allow you to set a target or quota amount for outside sales representatives or in combination with inside sales representatives. You can then compare the actual amounts stored to the target amounts for analysis.

For each commission type you can split the commission percentages between outside and inside sales representatives or limit the commission to the outside sales representative. Each sales order requires an outside sales representative be assigned; an inside sales representative is optional. The commission type comes from PD Mass Maintenance Entry. If none exists, Sales Entry Invoice Processing Report takes the commission type from the Sales Commission Setup record.

The commission amounts are not calculated during Sales Entry Invoice Processing, but instead you can calculate them by running the SM Commission Report. The SM Commission Report can be generated whenever it is needed without updating it each time. When the actual commission amount is calculated and updated, it is stored in Sales Commission Setup record. The SM Commission Report can be generated for previously paid commissions or unpaid commissions.

You can also change or delete commission records using this function. Use the Search function to specify criteria to search for an existing record to maintain.

Prerequisites

These setups must be completed before Sales Commission Setup and processing can begin:

  • SA Company Setup
  • SA Operator Setup
  • Sales Rep Setup