Sales Commission File Maintenance

Application Overview

 

This function will provide you with a very flexible method of defining sales commissions.  With 17 different commission codes to choose from and 10 levels for break points, this function will allow you to define almost any kind of commission.  Additionally, you can predefine as many commission codes as you need and specify an effective date for the sales commission.  This function is similar to the Elliott Pricing Structure and requires setup procedures, see Global Utilities on this manual.

 

Run Instructions

 

From the COP Maintenance pull down menu, select Commission Structure File.

 

 

 

 

Before using this function, the user should thoroughly review the Salesman Commission Setup examples and explanations to fully understand and appreciate the flexibility and options available in structuring commissions. 

 

 

Commission Examples

 

 

Commission Structure

Commission Code 5:      Salesman/Item

Commission Type:         M = Margin

Commission Break:        M = margin

 

 

For the above commission schedule:

 

1.   From a negative margin (Level 1 Break Point)  to zero margin (Level 2 Break Point)

2.   Salesman commission is –100% (salesman sold below cost and absorbs the negative margin)

 

3.   From a 0 pct. margin (Level 2 Break Point) to 10% margin (Level 3 Break Point)

4.   Salesman commission is 2.5% of the margin

 

5.   From a 10% margin (Level 2 Break Point) to a 20% margin (Level 4 Break Point)

6.   Salesman commission is 5% of the margin

 

7.   From a 20% margin (Level 4 Break Point) to a 33.33% margin (Level 5 Break Point)

8.   Salesman commission is 7.5% of the margin

 

9.   From a 33.33% margin (Level 5 Break Point) and higher (Level 6 Break Point)

     10.   Salesman commission is 10% of the margin

 

 

 

 

Commission Structure               

Commission Code 5:      Salesman/Item

Commission Type:         M = Margin

Commission Break:        P  = Percent of Price                                                                             

 

 

For the above commission schedule:

 

1.   From 0 percent to 50% of the price

2.   Salesman commission is 0%

 

3.   From 50% to 75% of the price

4.   Salesman commission is 5% of the margin

 

5.   From 75% to 100% of the price

6.   Salesman commission is 7.5% of the margin

 

7.   From 100% of the price and up

8.   Salesman commission is 10% of the margin