All sales commission formula levels exist. When you add a sales commission formula, you choose one of the existing levels, and then add your sales commission formula to it. The matrix comprises all combinations of all sales commissions formulas. The following procedure describes how to search for the combination that you want to modify, and then configure a commission formula for it. You will configure a very simple commission of 20% based on 1% gross sales profit. Where applicable, this procedure will also reference advanced options and split commissions.
- Go to File>Customer>Salesman, and then click the Matrix tab.
You can also access this screen from Sales > Salesman Commissions > Salesman Commission Matrix.
- In the Salesman box, type or search for the salesman for whom you want to configure a commission formula.
- Since the matrix comprises all formulas, there are many combinations available for edit. To see these combinations, click the Levels button. Now note that each of those levels applies to individual salesmen, customers, branches, etc, resulting in a very long list. You will need to choose one of these combinations to edit, so consider narrowing the list to choose from.Select one or more filter options:
- Type: Choose whether you want to modify a Current or a Future formulas.
- Branch: Type or search for the branch code to which the formula applies. Leave blank to include all branches.
- Customer: Type or search for the customer to which the formula applies. Leave blank to apply to all customers.
- Show: You can choose Available, Existing, or Expired.
- Product Filters: If you are calculating your commissions based on the product detail, enter the combination for which you would like to enter a commission formula using the filters listed below. This combination determines when the formula will be used to calculate the commission. You can also leave all fields blank to see all of the available formula combinations.
- Product The reference code and name of the specific product that the formula will apply to. If the formula applies to all products, leave this box blank.
- Product Line The reference code and name of the specific product lines that the formula will apply to. If the formula applies to all product lines, leave this box blank.
- Price Group The reference code and name of the specific price group that the formula will apply to. If the formula applies to all price groups, leave this box blank.
- Buy Line The reference code and name of the specific buy line that the formula will apply to. If the formula applies to all buy lines, leave this box blank.
- Major Group The reference code and name of the specific major group that the formula will apply to. If the formula applies to all major products, leave this box blank.
- Primary Vendor The Primary Vendor for the product. The formula applies only when the selected vendor is listed as the primary vendor for the product that is sold. It does not apply if the vendor is the secondary vendor.
- Click Search.
The Commission Matrix Results table lists all formulas that match your filter criteria. Formulas in green are existing combinations: they have at least one current commission formula entered, however, you may edit the formula or add additional formulas for the combination. Formulas in red are expired combinations; their commission formula is expired and will no longer be used.
- Click the Commission Matrix Result that you want to modify. Details and advanced options appear.
- Click Edit.
To configure a commission formula so that the salesman receives 20% commission when he makes a Gross Profit of 1% or more on a sale:
- From the Based On list, choose Gross Profit. This value is in percent.
- Click the Add Commission Break button.
- In the Gross Profit Cell, type the minimum gross profit percent that the sale must achieve before the salesman receives the commission. For this example, type 1.
- In the Commission Percent box, type the commission that the salesman should receive when the Gross Profit percent break is reached on an order. In this example, 20.
- You may specify additional commission breaks, based on different gross profit levels. These commission breaks work as a sliding scale. For example, if you set 20% commission on 1% gross profit, but 40% commission on 5% gross profit, then 1-4% profit will result in the 20% commission.
You may also base the commission on GP Dollar (Gross Profit dollar amount), Merchandise total, or Discount Pct (of list).
- To fine tune your commission formula, you may now set additional advanced options on load, dates, and other options. These are not required, but if you would like to learn more, see Advanced sales commission formula options.
- You may also split commissions. Split commissions configured here apply only to those products determined by the matrix . To learn how, see Split commission by product detail
Note: You can also configure a split commission among 2 or more salespeople, in which salespeople will split commission on the full sale. This type of split is configured on the Setup page, under Commissions: Split. To learn about this type of split, see Split commissions among salespeople.
- Click Save.
The sales commission formula takes effect immediately (unless you have set a different effective date as described in Advanced sales commission formula options).