Commission Options

Commission Options Overview

The Commission Options page in the Setup Wizard provides even greater flexibility in the configuration of you Salespersons Commissions. The Commission Options page is shown in Figure 1.

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Figure 1: The Commission Options page

There are three sections within the options page, these are explained in detail in the following tables:

Commission Type

Explanation

Commission is calculated as a Percentage of Selling Price

[Default] If this option is selected then
Commission = Price * Commission Rate.

Commission is calculated as a Percentage of Profit

If this option is selected then
Commission = (Price-Cost) * Commission Rate.

Commission is a Percentage of (Selling Price - Base Price)

If this option is selected then
Commission = (Selling Price - Base Price) * Commission Rate, where the Base Price is set in the area shown in TBL-FIGURE 1.



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TBL-FIGURE 1: The Base Price selection

Base Price: Select the Price Schedule to be used for the Base Price.
+ / - : Enter a Percentage tolerance for the Calculation.
Default Base Price: Select the Price to use in the event that the Base Price is Zero.
+ / - : Enter a Percentage tolerance for the Calculation.

Based on Salesperson

This allows the Commission Type to be set separately for each Salesperson on the By Salesperson tab in the Commission Rates window.

Table 1: The Commission Calculation

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Option

Function and/or Purpose

Commission Percentage uses the Customer's Sales % Setting

When checked, the Commission Percentage is read from the Customer Record.


See: Customer - Financial Tab for more information on setting the percentage.

Table 2: The Commission Percentage

 

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Option

Function and/or Purpose

Exclude Labor from Profit Margin Calculations

Checking this option instructs the system to exclude the value of Labor items on Invoices when calculating the Profit Margin during the Commission Calculations.

Allow salespersons to run commission reports for themselves only

If checked and Security for 'Run Commission Reports' is turned off, then each Salesperson can run the Commission Report for themselves only.


See: Users and Security for more information

Only calculate commissions on items set as Commissionable

If checked, the Commission is only calculated on the sales for Inventory Items that have the [Commissionable] flag checked.


See: Inventory - Extra for more information on setting the Commissionable flag.

Calculate commission based on customer profile

If checked, the system uses the customer price schedule and any contract pricing or price schedule exceptions to determine what commission rate to use. Commission is not paid out for more than the profit made - for example, if you only make .50 profit, but the commission was calculated at 2.44, only .50 commission is paid.

Sales people can run their own Commission Report if they do not have "Run Commission Report" turned on under Users and Security

If checked, System Five forces all of the existing stock within the current department to a specific location.

Table 3: The Additional Options

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