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 (tdcms0635m000) session and the Rebate Agreement (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.

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

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

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
Related topics