| Commission Agreements (tdcms0135m000)You can start this session in the details mode by
clicking: - Details on the appropriate menu of the Commission Agreements (tdcms0135m000) overview session.
- Commission Agreement Details on the File menu of the Commission Agreement (tdcms0635m000) session.
When you double-click a record, or click the New button, the Commission Agreement (tdcms0635m000) session is started. Sold-to Business Partner Usually a customer's purchase department, the business partner
who orders goods or services from your organization, that owns the
configurations you maintain, or for whom you perform a project. The agreement with the sold-to business partner can include
the following: - Default price and discount agreements
- Sales order defaults
- Delivery terms
- The related ship-to and invoice-to business partner
Relation A shortened term for trade relation. Relation is a collective
term for an employee or buy-from business partner that is entitled to a
commission, and a sold-to business partner entitled to a rebate. Relations can
be grouped in a relation team for the purpose of assigning the same agreement
structure. Relation Type A classification that determines whether a commission or a
rebate is involved, as well as how commissions are to be paid. The relation is
a sold-to business partner to whom a rebate is granted, or a buy-from business
partner (agent) or an employee (representative) to whom commission is paid. Child Agreement If this check box is selected, the agreement is a child
agreement. You can only access this field if the Relation field is filled and if the Parent Commission for Child check box in the Commissions/Rebates Parameters (tdcms0100s000) session is selected. Agreement Group A group of relations to which the same commission/rebate
agreements are linked. Project An endeavour with a special objective to be met within the
prescribed time and money limitations and that has been assigned for definition
or execution. Item In LN,
the raw materials, subassemblies, finished products, and tools that can be
purchased, stored, manufactured, sold, and so on. An item can also represent a set of items handled as one kit,
or exist in multiple product variants. You can also define nonphysical items, which are not held
in inventory but can be used to post costs or to invoice services to customers.
The following are examples of nonphysical items: - Cost items (for example, electricity)
- Service items
- Subcontracting services
- List items (menus/options)
Commission Group A set of items that is grouped and then linked to an agreement. Effective Date The date from which the agreement is valid and effective. Expiry Date The date from which the agreement is no longer valid and
effective. Cumulative Agreement If this check box is selected, this is an agreement to
calculate commissions based on cumulative sales. LN records all sales for
which this agreement is applicable in a separate file. At the end of the
current period, you can calculate the commission based on the total sales in
this period with the Calculate Commissions/Rebates on Cumulative Sales (tdcms1200m000) session. Grade by Quantity/Amount This field determines the basis for the grades. Currency A generally accepted medium of exchange such as coins, treasury
notes, and banknotes. The following currency types are available in LN: - Home currency, which is used internally by companies to
calculate costs, record budgets, and register tax amounts
- Transaction currency, which is used in transactions with
business partners, such as orders and invoices
Note If the Currency for Invoicing is set to Agreement in the Relations (tdcms0110s000) session, you can use this field to specify the invoice currency for a relation. However, if the
agreement applies to an agreement group, you cannot define an invoice currency.
In this case, the reference currency is used. Grade Unit The unit that is used to determine the grade. A grade unit only
applies to agreements defined for items. Note You must first fill in the Item field and then choose Quantity in the Grade by Quantity/Amount field, so you can fill in
the grade unit. Grade Calculation This field determines the basis for the grade calculation. Example If an item is ordered: Quantity | Unit Price | Commission | 100 | 20 | 1 % |
Result:
Gross
The commission is 100 * 20 * 1% = 20
Net
The commission is 100 * 20 * 1% = 20
The remainder amount is 2000 - 20 = 1980
The final commission amount is 1% * 1980 = 19.80
Fixed Amount On This field determines how the commissions are calculated, if a
fixed amount is entered. Commission Over The basis on which commissions are calculated. Grade The commission is based on the amount or quantity in this
grade. Total The commission is based on the total amount of an order,
or order line.
Example An order is placed for $25,000, using the following
scale: Up
to | % |
---|
$10,000 | 0 | $20,000 | 1 | $30,000 | 2 | $999,999 | 3 |
If the percentage is based on Grade,
the following applies: - $10,000 * 0% = $0
- $10,000 * 1% = $100
- $5,000 * 2% = $100
- Total = $200
If the percentage is based on Total,
the commission is calculated as follows: $25,000 * 2% = $500 Grow Commission Over The basis on which the growing commissions are calculated. Example A sales order is placed for $50,000. The normal commission
is based on Total. The growing commission is based on Grade.
The following scale is used: Up to | Normal % | Growing
% |
---|
$10,000 | 0 | 0 | $20,000 | 1 | 0 | $30,000 | 2 | 1 | $999,999 | 3 | 3 |
Commission | Calculation |
---|
Normal | $50,000 * 3% =
$1,500 | Growing | - $10,000 * 0% = $0
- $10,000 * 0% = $0
- $10,000 * 1% = $100
- $20,000 * 3% = $600
- Total = $700
| Total | = $1,500 + $700 =
$2,200 |
Invoice Direct/Reserve This field controls how LN settles the calculated
commission. The following restrictions apply to this function: - If an Employee relation type is specified in the agreement, this
field is always Reserve.
- If the Link with Finance check box is selected in the Commissions/Rebates Parameters (tdcms0100s000) session and no Employee relation type is specified in the agreement, this
field is Invoice.
Note - Payments to employees are not invoiced directly, because of
legal requirements concerning taxation.
- When no relation is entered in the agreement, LN checks the relation
type when commissions are posted to Financials. If the relation is Employee, the calculated
commission is always accumulated, even if this field is Invoice.
Discount Code The discount code's type
must correspond with the agreement's type ( Commission or Rebate), and must be
suitable for use in an agreement. | |