Commission/rebate over cumulative sales

Instead of calculating commissions or rebates for each individual sales order (or order line), you can calculate commissions or rebates based on the sum of all sales orders that are closed in a particular period.

Example

Each relation can have a different period table. The relations are calculated every week:

  • On the first grade of 20,000 : 5%.
  • On the rest : 10%.

In one week, this sales person acquires three orders:

DayAmount
Monday7,500
Tuesday12,000
Friday13,500
Sum33,000

 

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

Commission calculation:
5% of 20,000:     1,000
10% of 13,000:    1,300
Total commission: 2,300
Calculation procedure
  1. LN selects the applicable agreement for the calculation and determines if this is a cumulative or a non-cumulative agreement. In case 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.

    See the Cumulative Agreement field in these sessions:

  2. Use the Calculate Commissions/Rebates on Cumulative Sales (tdcms1200m000) session to calculate the commissions and rebates based on the cumulative sales data that has been recorded. The Calculate Commissions/Rebates Based on Cum. Sales after Order Entry and the Calculate Rebates based on Cum. Sales after Order Entry fields in the Commissions/Rebates Parameters (tdcms0100s000) session determine how the commissions/rebates on cumulative sales are calculated.

The calculation of commissions and rebates, based on cumulative sales, is performed in these sessions:

You can modify the calculated commissions and rebates in these sessions:

  • Commissions (tdcms1550m000)
  • Rebates (tdcms2550m000)
Note

If you want to apply the cumulative calculation method, make sure that no non-cumulative agreement with a higher priority exists. (See the Search tabs in the Commissions/Rebates Parameters session).

Related topics