Setting Up Salesperson Commissions

If you track sales commissions, you can select various options in Accounts Receivable, Order Entry, and Inventory Control to specify how sales commissions are calculated and assigned. More...

• In Order Entry, specify whether Order Entry tracks commissions, and whether commissions are calculated on the sales amount or the margin.
• In Accounts Receivable, specify the number of commission rates to use for each salesperson, a commission percentage for each commission rate, and the range of sales amounts to which each rate applies.
• In Inventory Control, allow commissions for item categories and assign commission percentages. (These determine whether Order Entry calculates commissions based on the item category or the rate specified for the salesperson.)

For more information about how sales commissions are calculated and assigned, see About Sales Commissions.

To set up salesperson commissions:

1. In Order Entry, turn on commission tracking. More...

   1. Open Order Entry > O/E Setup > Options.
   2. On the Processing tab, select the Track Commissions option.
   3. On the Commission By list, select Sales or Margin.
      • If you select Sales, Order Entry calculates commissions as a percentage of the sales amount.
      • If you select Margin, the calculation is based on the margin amount.
   4. Click Save.

   With the Track Commissions option selected, you can print commission data on the O/E Salesperson Commissions report as data becomes available.

2. In Accounts Receivable, set up commission rates for each salesperson who is paid commissions. More...

   Note: You can edit commission rates at any time, but the new rates will affect only future commissions.

   1. Open Accounts Receivable > A/R Setup > Salespersons.
   2. Select a salesperson.
   3. On the Commission tab, select the Paid Commissions option.

   4. Select the number of commission rates to use (up to five).

      Example: You could use two commission rates to specify that a salesperson be paid 2 percent commission on the first $10,000 of sales, and 5 percent on sales over $10,000.

   5. If you are setting up multiple rates, specify the commission percentage for each commission rate, and the range of sales amounts to which each rate applies.
   6. Click Save.

3. In Inventory Control, allow commissions for each item category that accrues commissions. More...

   Important! Item category commission rates override salesperson commission rates. If you want to use the salesperson commission rate you specified on the A/R Salespersons screen for sales of an item, you must set the item's category commission rate to 0 (zero) percent.

   1. Open Inventory Control > I/C Setup > Categories.

   2. Select an item category code.
   3. On the Options tab, select the Allow Commissions option.
   4. Specify a commission rate to use for items in the selected category.
      • If you want to use the salesperson commission rate you specified on the A/R Salespersons screen, enter 0 (zero) in the Commission Rate field.
      • If you want to override the salesperson commission rate, enter the rate to use in the Commission Rate field.

   5. Click Save.

      Note: Each item category in Inventory Control can have a single commission rate. If you want to specify a different rate for an item, you can change its category when you add it to an order.

Published: September 11, 2020
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