Sales commissions may be calculated based on the combination of a number of factors, including the salesman placing the order, the customer for whom the order is placed, the product line, etc. Each combination in the Sales Commission Matrix is assigned a level number within that hierarchy: The lower the level, the more (Salesman/Customer/Product/Branch); the highest level 26 is the broadest (Salesman). Levels define which commission formula is used based on their priority.
You can view a list of the predefined commission levels on the Salesman Commissions Matrix screen: File>Customer>Salesman: Matrix or Sales>Salesman Commissions>Salesman Commission Matrix. Click the Levels button.
If your Salesman Commissions by Product Detail option is set to N in the Company Master, you may see fewer levels than those listed in the example above. See Default sales commission settings
These levels determine which commission formula will be used. Combinations with lower level numbers (at the top of the list) override the combinations with higher level numbers (at the bottom of the list). If there is no formula set for a commission matrix combination, Inform ERP simply moves down the list of levels until it finds a formula that applies.
These combinations can contain up to 4 parameters, are system defined, and cannot be edited. For example,
|05||Salesman + Customer + Price Group + Branch||Selected Salesman when they order for a specific Customer with a Price Group on a specific Branch.|
For example, your salesman is selling a pencil that is part of your Office Supplies product line.
- In your system, there is a commission matrix set to give this salesman 10% commission on all products that belong to the Office Supplies product line.
- This commission combination has a level of 10 because the price setting applies to one salesman for one product line.
However, there is another price matrix set at the product level
- This same salesman has a commission matrix that grants a 20% commission for any product that he sells to this particular customer.
- This commission combination has a level of 06 because the commission setting applies to one salesman for one customer. Because the Salesman + Customer combination is more specific, it has a higher priority level, and the salesman receives the 20% commission on the sale.
The use of these levels will depend upon how your commission structure and products are organized. For example, if you do not use Price Groups then you will not need to create commission formulas involving Price Groups. However, the option to create these groups will still exist, and they will still be listed as a level.