Sales Commission Setup field descriptions

Fields are presented alphabetically within each section. Click on a link to jump to that section.

Commission Settings

Based On

Specify a value to determine what the commission percent is multiplied by to calculate the commission amount. This value is included on the SM Commission Report under Calculated on Amount with Gross, Net, or Margin. These calculations are used to determine commission, based on gross, net, or margin:

Gross = Price * Quantity Shipped
Net = (Price - Discount) * Quantity Shipped
Margin = (Price - Discount - Cost) * Quantity Shipped

Interval

Used to calculate commissions. The value you select in this field determines the amounts you can specify in the target levels.

For example, if you select Line, the target levels should reflect line amounts. If you select Month, the target levels should reflect monthly amounts.

If you select a Target Type and the Sales Rep field is blank, you must select Order or Line in the Interval field.

If you select Quota % in the Target Type field, you cannot select Order or Line as the Interval.

If you select Margin % in the Target Type field, you must select Order or Line in the Interval field.

Reference

If specific references was set up in SA Table Code Value Setup, a period (.) or pound (#) sign must precede the reference number specified in the first four positions of the Reference field.

Specify manual references in the Reference field. Use this field to further explain any necessary information associated with this commission type or sales representative.

Step Rate

The Step Rate only applies if these conditions are met:

Sales Amount, Margin Amount, or Quota % is selected in the Target Type field
Month

If this commission type record does not use one of these combinations, commissions are calculated on the shelf rate.

If the Margin % is selected in the Target Type field, clear this option. If this option is selected, this message is displayed:

Step Rate Not Allowed With Target Type of Margin Percent (6349)

If this option is cleared, commissions are calculated based on shelf rate. Shelf rate means the target amount for all line items for an interval are accumulated to determine the commission level. All line items for the interval are then paid at the same level.

This table shows an Shelf Rate example that is based on these values:

Target Type: Margin $
Interval: Order
Based On: Margin

If the order’s margin is $65.00, each line is paid at 8% commission. If the order’s margin is $42.00, each line is paid at 6% commission.


Breaks	Target	Split - Outside %	Split - Inside %	Single % Only
1.	10	2.00%	2.00%	2.00%
2.	20	3.00%	3.00%	3.00%
3.	30	4.00%	4.00%	4.00%
4.	40	5.00%	5.00%	5.00%
5.	50	6.00%	6.00%	6.00%
6.	60	7.00%	7.00%	7.00%
7.	70	8.00%	8.00%	8.00%
8.	80	9.00%	9.00%	9.00%
9.	90	10.00%	10.00%	10.00%
10.		11.00%	11.00%	11.00%

If Step Rate is selected, commissions are calculated based on the step rate. Step rate means that the commission level is determined by adding the target amount for the line item to the previously accumulated target amount for the selected interval.

This table shows a step rate commission example, based on these values:

Target Levels of $100, $200, and $300
Line Items Total $250.00


First	$99.99	at level 1
Next	$100.00	at level 2
Remaining	$50.01	at level 3

Target Type

The Target Type determines the values to be used to determine the target breaks specified in the Based On field. The target breaks can be based on the total sales amounts, margin amounts, margin percent, quota percent, or can be left blank. If this field is left blank, the Interval is also blank.

If this field is left blank, the target is determined per line item and Level 1 commission percentages are used. If you pay a flat commission rate, leave this field blank and the table allows you to only set up Level 1.

If you choose Quota %, the SM Commission Report compares the outstanding orders (for which commissions need to be paid) to the quota amounts set up on the Sales Salesrep Setup record. Therefore, the Target Type field cannot be Quota % if the Salesrep field is blank. The actual percentage of the quota satisfied during the current month, quarter, or year is used to determine the proper commission to pay the sales representative. The commission payment calculation is always based on 12 periods corresponding to the month.

Sales Info/Net Sales/Margin Amount

The title of this section changes, based on the values in the Target Type and Based On field selections.

If the Target Type is Sales Amount, this section shows the running totals of the sales earned for this commission record for the month, quarter, and year. This is updated when the SM Commission Report is run with the Update Commissions? option set to Y es and the Print option set to (C)urrent.

If the report has never been run to update the selected Sales Commission Setup record, the Last Update fields for Sales Info Month, Quarter, and Year will show 'Never Updated'.

If the Target Type is Quota %,

Single % Only

Used if the outside sales representative and the inside sales representative are the same on a line item or the inside sales representative is blank. It is not meant for split commissions. Up to 10 commission rates can be set up. The commission rates are applied to each line item amount or the monthly, quarterly, or yearly amounts.

Split Outside/Inside

Specify the desired commission rates for paying the inside and outside salesreps. Up to 10 commission rates can be set up. These fields are used when commissions are to be split between inside and outside salesreps. The commission rates are applied to each line item amount with the line item amount being used in conjunction with the cumulative monthly, quarterly, and yearly amounts when Step Rate is selected.

Target

If the Target Type field is blank, this column is non-enterable. If a target type has been selected, specify the target amounts or percentages for commission levels. Up to nine target levels can be entered. If the target type is Margin % or Quota %, the targets must be specified as percentages (for example, 10% entered as 10). If the target type is Sales Amount or Margin Amount, the targets must be specified as an amount. The target level is with target type and interval to determine the level at which the sales representative qualifies for commission payment. The commission rate from this level is then used to calculate the actual commission earned. The commission rates using the target levels are calculated in this manner:

If the derived target value is less than target level 1, use the first level of commission rates.
If the derived target value is less than target level 2 and greater than or equal to target level 1, use the second level of commission rates.
If the derived target value is less than target level 3 and greater than or equal to target level 2, use the third level of commission rates.

The same pattern continues for the remaining target levels.

Targets must be set up to determine at what percent the commission is to be paid.

A target can be entered for levels 1-9 but not level 10 because anything at or above level 9 is paid at level 10’s percent.

The following table is an example of how the target levels should be set up.


	Target %	Split - Outside %	Split - Inside %	Single % Only
1.	10	2.00	2.00	2.00
2.	20	3.00	3.00	3.00
3.	30	4.00	4.00	4.00
4.	40	5.00	5.00	5.00
5.	50	6.00	6.00	6.00
6.	60	7.00	7.00	7.00
7.	70	8.00	8.00	8.00
8.	80	9.00	9.00	9.00
9.	90	10.00	10.00	10.00
10.		11.00	11.00	11.00

A table with zero as the first target amount will not work. When the first target level is 0 or blank, the report assumes that the end of the table has been reached and all commissions will be calculated at the 2% level.

Commission Earned

The commission amount earned per month, quarter, and year is updated by the SM Commission Report. This is a running total of the amount of commission a sales representative has earned for this commission type. The monthly totals automatically roll on the last day of the month and yearly totals are cleared during year end closing.

Commissions Earned Month/ Quarter/ Year are only updated if these conditions are met when the SM Commission Report is run:

Yes is selected for the Update Commissions?
C, for Current, is specified for the Print option

If a Sales Commission Setup record has never been updated by the SM Commission Report, Never Updated is displayed in the Last Update fields in for the month, quarter, and year.

Single % Only

Used if the outside sales representative and the inside sales representative are the same on a line item or the inside sales representative is blank. It is not meant for split commissions. Up to 10 commission rates can be set up. The commission rates are applied to each line item amount or the monthly, quarterly, or yearly amounts.

Split Outside/Inside

Specify the desired commission rates for paying the inside and outside salesreps. Up to 10 commission rates can be set up. These fields are used when commissions are to be split between inside and outside salesreps. The commission rates are applied to each line item amount with the line item amount being used in conjunction with the cumulative monthly, quarterly, and yearly amounts when Step Rate is selected.

Target

If the Target Type field is blank, this column is non-enterable. If a target type has been selected, specify the target amounts or percentages for commission levels. Up to nine target levels can be entered. If the target type is Margin % or Quota %, the targets must be specified as percentages (for example, 10% entered as 10). If the target type is Sales Amount or Margin Amount, the targets must be specified as an amount. The target level is with target type and interval to determine the level at which the sales representative qualifies for commission payment. The commission rate from this level is then used to calculate the actual commission earned. The commission rates using the target levels are calculated in this manner:

If the derived target value is less than target level 1, use the first level of commission rates.
If the derived target value is less than target level 2 and greater than or equal to target level 1, use the second level of commission rates.
If the derived target value is less than target level 3 and greater than or equal to target level 2, use the third level of commission rates.

The same pattern continues for the remaining target levels.

Targets must be set up to determine at what percent the commission is to be paid.

A target can be entered for levels 1-9 but not level 10 because anything at or above level 9 is paid at level 10’s percent.

The following table is an example of how the target levels should be set up.


	Target %	Split - Outside %	Split - Inside %	Single % Only
1.	10	2.00	2.00	2.00
2.	20	3.00	3.00	3.00
3.	30	4.00	4.00	4.00
4.	40	5.00	5.00	5.00
5.	50	6.00	6.00	6.00
6.	60	7.00	7.00	7.00
7.	70	8.00	8.00	8.00
8.	80	9.00	9.00	9.00
9.	90	10.00	10.00	10.00
10.		11.00	11.00	11.00

A table with zero as the first target amount will not work. When the first target level is 0 or blank, the report assumes that the end of the table has been reached and all commissions will be calculated at the 2% level.

Commission Breaks

Single % Only

Used if the outside sales representative and the inside sales representative are the same on a line item, or the inside sales representative is blank. It is not meant for split commissions. Up to 10 commission rates can be set up. The commission rates are applied to each line item amount or the monthly, quarterly, or yearly amounts.

Split Outside % and Split Inside %

Commission rates for paying the inside and outside sales representatives. Up to 10 commission rates can be entered. Use these fields when commissions are to be split between inside and outside sales representatives.

The commission rates are applied to each line item amount. When step rate is used, the line item amount is used with cumulative monthly, quarterly, and yearly amounts.

Target

If the Target Type field is blank, this column is non-enterable. If a target type has been selected, specify the target amounts or percentages for commission levels. Up to nine target levels can be entered. If the target type is Margin % or Quota %, the targets must be specified as percentages (for example, 10% entered as 10). If the target type is Sales Amount or Margin Amount, the targets must be specified as an amount. The target level is with target type and interval to determine the level at which the sales representative qualifies for commission payment. The commission rate from this level is then used to calculate the actual commission earned. The commission rates using the target levels are calculated in this manner:

If the derived target value is less than target level 1, use the first level of commission rates.
If the derived target value is less than target level 2 and greater than or equal to target level 1, use the second level of commission rates.
If the derived target value is less than target level 3 and greater than or equal to target level 2, use the third level of commission rates.

The same pattern continues for the remaining target levels.

Targets must be set up to determine at what percent the commission is to be paid.

A target can be entered for levels 1-9 but not level 10 because anything at or above level 9 is paid at level 10’s percent.

The following table is an example of how the target levels should be set up.


	Target %	Split - Outside %	Split - Inside %	Single % Only
1.	10	2.00	2.00	2.00
2.	20	3.00	3.00	3.00
3.	30	4.00	4.00	4.00
4.	40	5.00	5.00	5.00
5.	50	6.00	6.00	6.00
6.	60	7.00	7.00	7.00
7.	70	8.00	8.00	8.00
8.	80	9.00	9.00	9.00
9.	90	10.00	10.00	10.00
10.		11.00	11.00	11.00

A table with zero as the first target amount will not work. When the first target level is 0 or blank, the report assumes that the end of the table has been reached and all commissions will be calculated at the 2% level.