Commissions/Rebates Parameters

Use this session to define parameters for commissions and rebates used in the Commissions and Rebates module. If all Order Management parameters are initialized in the Initialize Parameters (tcmcs0295m000) session, the parameters of this session are also initialized.

You can enter priorities for commissions and rebates. The sequence in which you enter the data will be used to find and select the correct agreement for commissions and rebates.

Use the Print CMS Parameters (tdcms0400m000) session to print parameter information.

Note

If you update the parameters in this session, every session that uses these parameters must be restarted, before you can use and read the new settings.

 

Effective Date

The date and time that the parameters are valid. The parameters are valid up to the effective date of a more recent parameter setting.

Description

A user-defined name that identifies the parameter settings.

Commissions Implemented

If this check box is selected, the commissions are calculated.

Performance aspects

The setting of this field could affect system performance and database growth. For more information, refer to Disable unused concepts.

Commission Calculation Method

This parameter controls the moment of calculating the commissions.

Default value

If the relation is a Supplier, or an Employee, this field is defaulted to the Calculation Method field of the Relations (tdcms0110s000) session.

Allowed values

Possible Values

Linking of Relations On

This field determines whether relations can be linked to the complete order or to the individual order lines.

Important!

If you change this parameter after you defined relations and commission agreements, LN might not find valid agreements. As a result, you must correct the agreements. To avoid this, do not change the parameter after agreements are defined.

Method of Linking Rels. to Order/ Order Lines

This parameter determines how relations are linked to an order or order line.

Multiple Commissions Allowed

If this check box is selected, the parent of the relation receives a double commission. This is relevant for the calculation of commissions of parent relations in hierarchical structures. This means that a parent relation receives commissions for each of the subordinates that are linked to an order or order line.

If this check box is cleared, this means that a relation can receive only one commission for a single order or single order line, even if it is a parent relation of a number of relations linked to the same order (line).

Note

If several relations receive a commission for the same order, they do not necessarily receive the same commission. The commission calculation is performed separately for each relation and different commission agreements can apply.

Link with Finance

If this check box is selected, commissions are posted to Financials.

Note

For an Employee relation, commissions are never posted to Financials. For employees, this check box determines how commissions are processed.

  • If this check box is selected, commissions for employees are handled in LN, but payment is executed by the (external) payroll department.
  • If this check box is cleared, commissions for employees are handled outside LN, after the commissions are set to Closed in the Close Commissions Reserved for Employees (tdcms2102m000) session.
Calculate Commission not Based on Cum Sales after Order Entry

If commissions can be calculated at order entry, this field determines how the commissions that are not based on cumulative sales, are calculated.

Note

To calculate the commissions manually, use the Calculate Commissions/Rebates on Cumulative Sales (tdcms1200m000) session.

Calculate Commission Based on Cum. Sales after Order Entry

If commissions can be calculated at order entry, this field controls how the commissions that are based on cumulative sales, are calculated.

Note

If you want to calculate the commission on cumulative sales in one period, you must select Manually in this field and use the Calculate Commissions/Rebates on Cumulative Sales (tdcms1200m000) session.

Parent Commission for Child

This field determines whether the child at the bottom of a relation structure can receive a commission because it is related to some other relations.

Example

AOwn agreement=2%
-Child agreement=3%
BOwn agreement=4%
-Child agreement=5%
COwn agreement=1%

 

C is at the bottom of the relation structure, A is at the top. Every relation can have its own agreement and an agreement for its children (child agreement), so A and B are parents of C.

If this check box is selected, every relation linked to the order is checked to see whether it is at the bottom of a relation structure. If it is, and if it has a parent relation (filled in the relation file), LN searches for this parent relation to determine whether or not child agreements are recorded. If a child agreement is found, the child receives the commission specified in that agreement. The search is continued until the top of the structure is reached.

In the example, A, B and C receive the following commissions (if A, B and C are linked to the order):

  • A: 2% from its own agreement. 3% according to the recorded child agreement.
  • B: 4% from its own agreement. 5% according to the recorded child agreement.
  • C: 1% from its own agreement.

If this check box is cleared, every relation linked to the order receives a commission according to the agreement recorded for this relation.

In the example:

  • A receives a 2% commission.
  • B receives a 4% commission.
  • C receives a 1% commission.
Search for Commission Based on Date

Commissions are valid for a certain period. The date in this field determines whether or not a commission is still valid.

Prof Calc Based on Cost/Sales Price

This field determines how LN calculates the gross profit percentage. This percentage is used in agreements for which the commission percentage depends on the gross profit.

Exchange Rate Type

The exchange-rate type that is used to calculate commissions for suppliers/employees.

The exchange rate type is used to calculate and invoice commissions. If you do not fill this field, LN uses the exchange rate types from Common.

Priority 1

Search priorities are used to find a valid agreement for the entered search combination or search level.

If a valid agreement is found for the first priority, the agreement will be used. If not, LN searches for a valid agreement for the second priority and so on.

/

Search priorities are used to find a valid agreement for the entered search combination or search level.

If a valid agreement is found for the first priority, the agreement will be used. If not, LN searches for a valid agreement for the second priority and so on.

/

Search priorities are used to find a valid agreement for the entered search combination or search level.

If a valid agreement is found for the first priority, the agreement will be used. If not, LN searches for a valid agreement for the second priority and so on.

/

Search priorities are used to find a valid agreement for the entered search combination or search level.

If a valid agreement is found for the first priority, the agreement will be used. If not, LN searches for a valid agreement for the second priority and so on.

Paid Commissions to Employees Implemented

If this check box is selected, the Paid Commissions to Employees submodule is implemented. The parameter is especially important for the Print and/or Delete Commissions/Rebates (tdcms0251m000) session. If the submodule is implemented, commissions to employees that are not fully paid cannot be deleted.

Note

This parameter is only applicable if the Link with Finance field is selected.

Generating Payments

This parameter determines the method for generating payment lines for commissions to employees.

Note
  • If you choose Automatically, commissions are generated in the Reservation and Approval of Reserved Commissions/Rebates (tdcms2202m000) session.
  • If you choose Interactively, LN asks permission to generate the commissions.
  • If you choose Manually, you must use the Generate Payment Lines for Commissions to Employees (tdcms4201m000) session.
Rebates Implemented

If this check box is selected, rebates can be calculated.

Performance aspects

The setting of this field could affect system performance and database growth. For more information, refer to Disable unused concepts.

Rebate Calculation Method

This parameter controls the moment of calculating the rebates. The calculation can be performed at order entry, when the order is invoiced, or when the invoice is paid for.

Default value

This field is defaulted to the Calculation Method field of the Relations (tdcms0110s000) session, if the relation is a Customer.

Linking of Relations On

This field determines whether relations can be linked to the complete order or to the individual order lines.

Important!

If you change this parameter after you defined relations and rebate agreements, LN might not find valid agreements. As a result, you must correct the agreements. To avoid this, do not change the parameter after agreements are defined.

Method of Linking Rels. to Order/ Order Lines

This parameter determines how relations are linked to an order or order line.

Multiple Rebates Allowed

This field indicates whether or not multiple rebates can be awarded to relations for one and the same order (line). This is relevant for the calculation of rebates for the parent relation in a hierarchical structure.

If this check box is selected, you can have multiple rebates by order (line). This means that a parent relation gets rebate for each of its subordinates that are linked to an order or order line.

If this check box is cleared, you cannot have multiple rebates by order (line). This means that a relation can only receive one rebate for a single order or single order line, even if it is a parent relation of a number of relations that are linked to the same order (line).

Link with Finance

If this check box is selected, all rebates are posted to Invoicing.

Calculate Rebates not Based on Cum Sales after Order Entry

If rebates can be calculated at order entry, this field controls how the rebates that are not based on cumulative sales, are calculated.

Note

If you select Manually, you must calculate the rebate in the Calculate Commissions/Rebates (tdcms0240m000) session.

Calculate Rebates based on Cum. Sales after Order Entry

If rebates can be calculated at order entry, this field controls how the rebates that are based on cumulative sales, are calculated.

Note

If you select Manually, you must calculate the rebate in the Calculate Commissions/Rebates on Cumulative Sales (tdcms1200m000) session.

Parent Rebate for Child

This field determines whether or not the child at the bottom of a relation structure can receive a rebate because it is related to some other relations.

Example

AOwn agreement=2%
-Child agreement=3%
BOwn agreement=4%
-Child agreement=5%
COwn agreement=1%

 

C is at the bottom of the relation structure, A is at the top. Every relation can have its own agreement and an agreement for its children (child agreement), so A and B are parents of C.

If this check box is selected, every relation linked to the order is checked to determine whether or not it is at the bottom of a relation structure. If it is, and if it has a parent relation (filled in the relation file), LN searches for this parent relation to determine whether or not child agreements are recorded. If a child agreement is found, the child receives the rebate specified in that agreement. The search is continued until the top of the structure is reached. In the example, A, B, and C receive the following rebates (if A, B, and C are linked to the order):

  • A: 2% from its own agreement.
  • B: 4% from its own agreement.
  • C: 1% from its own agreement.
  • Relation B receives 5% according to recorded child agreement.
  • Relation A receives 3% according to recorded child agreement.

If this check box is cleared, every relation linked to the order receives a rebate according to the agreement recorded for this relation. In the example:

  • A receives a 2% rebate.
  • B receives a 4% rebate.
  • C receives a 1% rebate.
Search for Rebates Based on Date

This field determines whether or not the rebate falls in the effective period. The date is compared with the rebate's effective period.

Prof Calc Based on Cost/Sales Price

This field determines how LN calculates the gross profit percentage. This percentage is used in agreements for which the rebate percentage depends on the gross profit.

Exchange Rate Type

The exchange-rate type that is used to calculate rebates for customers.

The exchange rate type is used to calculate and invoice rebates. If you do not fill this field, LN uses the exchange rate types from Common.

Priority 1

Search priorities are used to find a valid agreement for the entered search combination or search level.

If a valid agreement is found for the first priority, the agreement will be used. If not, LN searches for a valid agreement for the second priority and so on.

/

Search priorities are used to find a valid agreement for the entered search combination or search level.

If a valid agreement is found for the first priority, the agreement will be used. If not, LN searches for a valid agreement for the second priority and so on.

/

Search priorities are used to find a valid agreement for the entered search combination or search level.

If a valid agreement is found for the first priority, the agreement will be used. If not, LN searches for a valid agreement for the second priority and so on.

/

Search priorities are used to find a valid agreement for the entered search combination or search level.

If a valid agreement is found for the first priority, the agreement will be used. If not, LN searches for a valid agreement for the second priority and so on.