Commission Agreement (tdcms0635m000)Use this session to view, enter, and maintain commission agreements, which are used to calculate commissions.
Agreement Grades The lines on the Agreement Grades tab refer to the Commission Agreements (tdcms0130m000) session, in which you can specify the grades for the agreement. Note
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:
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 The raw materials, subassemblies, finished products, and tools that can be purchased, stored, manufactured, and sold. An item can also represent a set of items handled as one kit, or which exist in multiple product variants. You can also define nonphysical items, which are not retained in inventory but can be used to post costs or to invoice services to customers. The examples of nonphysical items:
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 Expiry Date The date from which the agreement is no longer valid and effective.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:
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:
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. Allowed values Commission Over The basis on which commissions are calculated.
Example An order is placed for $25,000, using the following scale:
If the percentage is based on Grade, the following applies:
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:
Invoice Direct/Reserve This field controls how LN settles the calculated commission. The following restrictions apply to this function:
Note
Allowed values 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.
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