Commissions and rebates calculation examples

These grades are explained:

Example 1: Grade by amount
Example 2: Grade by quantity - Maximum limit
Example 3: Grade by amount - Calculation method net
Example 4: Grade by amount - Profit percentages
Example 5: Grade by amount - Parent relation
Example 6: Grade by amount - Cumulative agreement

The following agreement parameters are applicable, which you can specify in the Commission Agreement - Grades (tdcms0635m000) session and the Rebate Agreement - Grades (tdcms0635m100) session:

Grade by Quantity/Amount
Grade Unit
Grade Calculation
Commission Over/ Rebate Over
Grow Commission Over/ Grow Rebate Over
Cumulative Agreement

Example 1: Grade by amount

Agreement
To Amount	Prof Perc	Commission Percentage over Grade	Growing Percentage over Total	Fixed Amount	Maximum Limit
1000	0.00 [%]	1.00 [%]	0.00 [%]	0.00	0.00
2000	0.00	2.00	0.00	0.00	0.00
5000	0.00	4.00	0.50	0.00	0.00
10000	0.00	5.00	1.00	0.00	0.00
25000	0.00	5.00	1.50	0.00	0.00

A relation closed an order of 12,500.

Calculation	Commission Perc.	Commission
1,000 * 1%	grade 0-1000	10
1,000 * 2%	grade 1000-2000	20
3,000 * 4%	grade 2000-5000	120
5,000 * 5%	grade 5000-10000	250
2,500 * 5%	grade 10000-25000	125
Total commission	-	525

Calculation	Growing Percentage	Total Commission
12,500 * 1.5%	187.5	712.50

Example 2: Grade by quantity - Maximum limit

Agreement
To Quantity	Prof Perc	Commission Percentage over Grade	Growing Percentage over Total	Fixed Amount	Maximum Limit
10	0.00 [%]	1.00 [%]	0.00 [%]	0.00	0.00
20	0.00	2.00	0.00	0.00	0.00
50	0.00	4.00	0.50	0.00	150.00
100	0.00	5.00	1.00	0.00	200.00
250	0.00	5.00	1.50	0.00	400.00

A relation closed an order of 200 jeans at a price of 100 each.

Calculation	Commission Perc.	Commission
10 * 100 * 1%	grade 0-10	10
10 * 100 * 2%	grade 10-20	20
30 * 100 * 4%	grade 20-50	120
50 * 100 * 5%	grade 50-100	250
50 * 100 * 5%	limit 250-200	-50
50 * 100 * 5%	grade 100-250	500
50 * 100 * 5%	limit 500-400	-100
Total commission	-	750

Calculation	Growing Percentage	Total Commission
150 * 100 * 1.5%	225	975
200 * 100 * 1.5%	300	1050

Example 3: Grade by Amount - Calculation method net

Agreement
To Amount	Prof Perc	Commission Percentage over Grade	Growing Percentage over Total	Fixed Amount	Maximum Limit
1000	0.00 [%]	1.00 [%]	0.00 [%]	0.00	0.00
2000	0.00	2.00	0.00	0.00	0.00
5000	0.00	4.00	0.50	0.00	0.00
10000	0.00	5.00	1.00	0.00	0.00
25000	0.00	5.00	1.50	0.00	0.00

A relation closed an order of 12,500.

Calculation	Commission Perc.	Commission
(1000 - (1,000 * 1%)) * 1 %	grade 0-1000	9.9
(1000 - (1,000 * 2%)) * 2 %	grade 1000-2000	19.6
(3000 - (3,000 * 4%)) * 4 %	grade 2000-5000	115.2
(5000 - (5,000 * 5%)) * 5 %	grade 5000-10000	237.5
(5000 - (2,500 * 5%)) * 5 %	grade 10000-25000	118.75
Total commission	-	500.95

Calculation	Growing Percentage	Total Commission
(12500 - (12,500 * 1.5%) * 1.5	184.68	685.63

Example 4: Grade by amount - Profit percentages

Agreement
To Amount	Prof Perc	Commission Percentage over Grade	Growing Percentage over Total	Fixed Amount	Maximum Limit
100000	10.00 [%]	0.00 [%]	0.00 [%]	0.00	0.00
100000	20.00	0.00	1.00	0.00	0.00
100000	50.00	0.00	2.00	0.00	0.00
200000	10.00	0.00	2.50	0.00	0.00
200000	20.00	0.00	3.50	0.00	0.00

A relation closed an order of 125,000.

Calculation	Commission Perc.	Commission
125,000 * 2.5%	grade 100,000 - 200,000, profit 10%	3125
Total commission	-	3125

Example 5: Grade by Amount - Parent relation

Agreement for William, George and John
To Amount	Prof Perc	Commission Percentage over Grade	Growing Percentage over Total	Fixed Amount	Maximum Limit
1000	0.00 [%]	1.00 [%]	0.00 [%]	0.00	0.00
2000	0.00	2.00	0.00	0.00	0.00
5000	0.00	3.00	0.00	0.00	0.00
10000	0.00	4.00	0.00	0.00	0.00
25000	0.00	5.00	0.00	0.00	0.00

 
           William 
              |
    __________|__________ 
   |                     | 
George                  John 

William is the parent relation of George and John. 
George and John form a relation team.

John and George are linked to an order line. The sale was for 1,250.

Calculation	Commission Perc.	Commission
JOHN	-	-
1,000 * 1%	grade 0-1000	10
250 * 2%	grade 1000-2000	5
Total	-	15

Calculation	Commission Perc.	Commission
GEORGE	-	-
1,000 * 1%	grade 0-1000	10
250 * 2%	grade 1000-2000	5
Total	-	15

Calculation	Commission Perc.	Commission
WILLIAM	-	-
1,000 * 1%	grade 0-1000	10
250 * 2%	grade 1000-2000	5
1,000 * 1%	grade 0-1000	10
250 * 2%	grade 1000-2000	5
Total	-	30

Example 6: Grade by Amount - cumulative agreement

If the agreement is cumulative, LN does not calculate the commissions and rebates immediately, but stores the sales data in a separate file, sorted by agreement and relation. Each relation can have a different period table.

The relations are calculated every week.

Cumulative agreement
To Amount	Prof Perc	Commission Percentage over Grade	Growing Percentage over Total	Fixed Amount	Maximum Limit
20000	0.00 [%]	5.00 [%]	0.00 [%]	0.00	0.00
50000	0.00	10.00	0.00	0.00	0.00

In one week, the relation closed three orders.

Day	Amount
Monday	7,500
Tuesday	12,000
Friday	13,500
Sum	33,000

The commission is calculated over the total amount: 33,000.

Calculation	Commission Perc.	Commission
20,000 * 5%	grade 0-20000	1000
13,000 * 10%	grade 20000-50000	1300
Total	-	2300