Bonus/Commission Agreement

A bonus and commission (b/c) agreement determines the conditions for calculating and processing bonus and commission for one or more recipients. A b/c agreement is updated with sales (invoiced customer order lines) covered by the agreement.

The customer order lines are validated as follows:

• The customer number must be valid for the b/c agreement in 'Customer. Open' (CRS610).
• The customer number must be included in 'Bonus/Comm Customer Table. Connect Customer' (OIS408).
• The customer number must be included in a business chain specified in 'Business Chain. Connect Customer' (OIS039).
• The order line's item number must be paying or generating in 'Customer Order. Open Lines' (OIS101).
• The item number must be included in 'Bonus/Comm Item Table. Connect Item' (OIS406).
• If two item tables are specified in 'Bonus/Comm Agreement. Open' (OIS412), the item number must be included in both tables.

The recipient of the bonus/commission can be an agent, business chain, customer or salesperson. The recipient must be entered in the customer file with the appropriate customer type.

In M3 the routines for bonus are the same as those for commission, so they are both administrated in the same programs. However, they can be separated with regards to agreements, items, statistics and reservations for bonus /commissions in the general ledger.

For each b/c agreement, customers and items that will affect the recipient's bonus/commission are connected. An item can affect the b/c agreement's paying amount and/or generating value.

The bonus/commission is settled when the agreement expires. If the agreement extends over several years, it is settled annually. Advances, according to a fixed or dynamic advance method, can also be credited to the recipients during the agreement period.

B/c agreements are entered in 'Bonus/Comm Agreement. Open' (OIS412).