Introduction

Create and edit Sales Reps along with their commission rates so the system can automatically track sales by Sales Rep and determine the sales commission due to each Sales Rep. Sales Commissions and Rates are related to Product sales, so are used in conjunction with Product Pricing, if not the full Inventory/Stock Management suite. 
 

Product/Service Groups are what determine the Commission Rates and Amounts. Ensure that your Products are properly assigned to their relevant Product Groups using the Codes Maintenance facilities. Re-allocating Products/Product Groups and/or changing Commission Rates only affect future transactions and calculations. Any changes will have no retrospective impact.

Like Sales Analysis Reporting, only Sales Invoices and Sales Credit Notes contribute to the calculations, so take care with Discounts and Rebates. Where relevant, use Credit Notes to ensure proper recording and reporting of Net Sales rather than Journal Credits. 

See:

 Using Codes Maintenance‍ 

Managing Product and Service Type Items‍ 

Creating Sales Item Invoices‍ 

Setting up Sales Reps and Commission Rates

The first step is to set up your sales reps by creating a sales rep code and recording the name, address and contact information of the relevant employees within your organisation. 

1. In the blue banner, go to Sales > Sales Representatives > Add New Sales Rep.
   
   
2. Delete

   Info: Our New Look

   If you are using our new look navigation, Sales Representatives can be found in the AR tab in the new sidebar:

   
   

3. In the header, complete the Sales Reps’ details.
4. Next, set up the commission type and rates for each of the Item Groups you sell. Any Item Groups already set up will appear here. You can add further Item Groups within Codes Maintenance‍ . For items not assigned to any item group, use the first row, 'Items not assigned to any Item Group' to record the commission rates that apply. 
   • In the Type column, you can set up sales rep commissions to be calculated in either of two ways:
     • Fixed Percentage: The sales commission is a fixed percentage of the total net sales (i.e. invoiced) value.  Therefore, if the net sales value is €100, you can specify that the sales rep would earn a certain percentage of that value. The Commission column will show a single rate per group. Enter the desired percentage in the field.
     • Margin Based: The sales commission is a percentage of the gross profit margin earned on the sale. This means that it is calculated based on the sales value less the cost of the item before taxes. If you choose this option, you can set up different commission rates to apply for different margin bands.  For example, you could have a 5% commission for sales that achieve a 10% gross margin and an 8% commission on sales that achieve over 10% gross margin. Set up as many bands as you wish. The Commission column will show different rates for each margin band. After clicking Add/Edit Bands,  click Add New Band and enter the rates.
5. Click Save after making any changes.

Nominating Sales Reps

Nominating Sales Reps in the Customer Master Record

To allocate Sales Reps to individual Customers, go to Sales > Customers and open the relevant Customer Master Record.

 In the Account Settings tab, select from the Sales Rep. dropdown.
 

Nominating Sales Reps at Invoice Entry

You can override the default Sales Rep and select another one at the time of Invoicing in the Sales Rep dropdown.
 

Fixed Based Commission Invoices and Reports

Invoice Example

This Invoice for Bath Salts belong to Product Group Cleansing. They are being sold at a 10% Discount to the Customer who is on Standard Pricing at a Unit Price of £4.56 before a 10 Percent Discount on the sales value:
 

The Sales Rep Commission Report

Go to Reports > Report’s Manager > Sales Reports > Sales Commissions Report.

The Report for the period in question then shows the following:
 

Margin Based Commission Invoices and Reports

Invoice Example

This Invoice was subject to Margin Based Sales Commission:

Sales Rep Commission Report

Go to Reports > Report’s Manager > Sales Reports > Sales Commissions Report.

You can mix both the Fixed Commission and Margin Based Commission for different Product Groups even within a single Sale Rep's commission structure. 

The Report for the period in question includes one sale based on the Fixed Commission basis and another based on the Margin Commission basis: