Knowledge Base Articles

Commissionable Amount

For a simple invoice, the commissionable amount, or the amount to which the commission rate is applied, can be calculated as follows:

Price x Quantity = Commissionable Amount

Because invoices often include discounts, credits, and/or royalties, this formula is too simple. As a result, CompuPlants calculates commissions by line, adjusting each line by the following factors before applying a commission rate:

Line Discount
Order Discount
Graduated Volume Discount
Line Item Credits
Volume Credits
Royalties

* Credit memos used to offset an invoice—but not tied to a product number on the order—are not subtracted from the commissionable amount.

Commission Amount

After calculating the commissionable amount, the application applies a commission rate to determine the commission amount:

Commissionable Amount x Commission Rate = Commission Amount

The commission rate is derived from one of four places:

• Commission Rates by Sales Type
• Commission Rates by Product Group
• Commission Rates by Product
• The sales rep's default commission rate

Learn more in the Commission Rates section.

Entry Forms

Sales Types

Enter the various sales types that could influence an order's commission rate (for instance full, partial, or zero commission). Enter a two-digit number code, a more detailed description, and select a payscan value (optional). Flagging a sales type as "Consignment" or "Intercompany" automatically makes it non-commissionable. For sales types associated with trade shows or free products, you may wish to "Exclude from Sales Reports."

Sales type is not required to save a shipping order; however, you may opt to require it by setting the admin option "salestypereqd" to "1".

Sales Reps

Enter each sales rep here: up to a 5-character code, the rep's name, commission rate, along with any other information.

For the system to calculate commissions, you must select a sales rep during order entry. You may opt to save default sales reps by customer in the customer file.

* The Sales Type and Sales Rep entry forms also appear in Setup > Receivables. Changes you make here will be applied there as well.

Create Product Commission Groups

In order to establish commission rates by product group, you must set up the commission groups here. Organize groups as you like: by plant, product type, size, promotions, etc. Afterward, associate individual products with a product group using the Commission Rates by Product quick-change grid.

Establish Commission Rates

Determine the commission rate for each combination of factors below. CompuPlants calculates commissions by line, so one line may meet the criteria for one rate while another may qualify for a different rate.

By Sales Type: This is the most common commission rate; applied when a valid sales rep/sales type combination is entered on the shipping order.

By Product Commission Group: If a product group is found, and both sales rep and sales type listed here are saved to the order, the system applies this rate. You may enter a flat rate (dollar amount) or a percentage. If a percentage, check the adjacent flag.

By Product: This grid displays your entire product catalog. Use it to add a product commission group, to change the plant's commissionable value ("1" for commissionable), or to designate a commission rate per plant (as percent). The commission rate per plant, if greater than 0, supersedes all other scenarios.

FAQ: How does CompuPlants apply commission rates?

It is important to remember that the application determines the commission amount line-by-line. This means that more than one commission rate may be applied to a single invoice.

• If commission rate per plant is greater than 0, then this rate is applied, overriding all other possible scenarios.
• If sales rep, sales type, and product commission group match existing combination, then it applies the Commission Rate by Product Group to that line.
• If product commission group is not found and the sales type/sales rep combination matches an existing combination, then the Commission Rate by Sales Type is applied.
• If product commission group is not found and the sales type/sales rep combination does not match an existing combination (or sales type is not found), then the rate is determined by the sales rep.

Processes

Sales Reps (Regular)

If a sales rep is to receive commission on an order, he/she must be entered in the "Rep" field on the order header form (within the Order Info panel). You must also select a Sales Type to apply a commission rate by sales type.

Calculate commissions after posting an order. Go to Commissions > Processes Sales Reps and follow menu items 1-4, described below.

1. Calculate Commission

When you execute this process, the application extends each line of the order, applying discounts, credits and royalties, and determines the commissionable amount. It then applies the appropriate commission rate and stores the information in the Edit Commission Detail quick-change grid.

You may apply this command to all invoices that fall within a specific date range or to a single invoice.

You will need to re-calculate commissions if any of the following occurs after a calculation:
* a product's "commissionable" setting changes
* a commission rate changes
* a line item credit is issued for a product on the order

2. Edit Commission Detail

This quick-change grid breaks down the commission amount by line and allows you to override some information: mark an item as commissionable, adjust line item credits and discount %, override the commission amount (changing the rate alone does not elicit a new commission amount). For an override, check the "Commission Override" flag. In the event that you need to recalculate commissions, the program will skip this line, keeping the override in tact.

Sequence of Calculations
Line Extended = Price x Quantity x Disc. %
Line Net = Line Extended - (Line Discount + Line Volume Discount)
Commissionable Amount = Line Net - (Line Volume Credits + Line Item Credits + Royalties)

3. Commission Calculated Pay List

Review the Commission Calculated Pay List for detailed prices, discounts, and commission amounts by order. Use the group by column feature to organize data into distinct groups. You may, for instance, wish to group by rep then sort by invoice. Right-click anywhere on the report and click "Show Summaries" to enable the totals row at the bottom of the screen.

4. Create Commission Pay List

Complete this step when you're ready to pay out commissions.

1. (Optional) Check the box labeled "Only Fully Paid Invoices" to restrict search results to only those invoices that are paid in full.
2. Select a payout date.
3. Click "Find."
4. Highlight one or more invoices, then select "Create Checks." This generates a detailed report of payouts administered at this time. It does not create actual checks that may be printed. Follow your normal payroll procedures for writing and distributing checks.

Sales Reps (Consignments)

More information to come.

Sales Reps (Merchandiser)

More information to come.

Pay to Vendor

More information to come.

Reports

These reports present information from the commission pay list, so you must generate them after completing step 4 above.

• Commissions by Invoice Date: This report lists all invoices by sales rep for a particular date range, showing invoice totals, paid invoices, commission amount (original), commission amount (paid), and the balance.
• Commission Payments by Date: If you'd like to view only commission payments, use this report. Select a date or date range, click "Preview," and the report lists sales rep, amount paid, and payment method.