Salesperson commission rates are the rates used to calculate commissions paid to salespersons for their sales orders.
Order Entry uses the rates you specify in Accounts Receivable to calculate salesperson commissions if:
- You select the Commissions Paid option in the salesperson's record.
- You define rates for each range of sales or margin amounts. You can define up to five rates for each salesperson.
- You track commissions in Order Entry.
- The category for the Inventory Control item used in an order allows commissions, but uses 0.00000% as the commission rate. (For more information about inventory item categories, see the Inventory Control help.)
You use the Commission tab on the A/R Salespersons screen in Accounts Receivable to specify whether a particular salesperson earns commissions. You also specify one to five commission rates, together with the range of sales amounts to which each rate applies.
For example, a salesperson might be paid 2% commission on the first $10,000 of sales per period, and then 5% on sales over $10,000. You can edit these rates at any time, but the new rates will affect only future commissions.
You can include sales commission rates for each salesperson on the Salespersons report that you print in Accounts Receivable. If you track commissions in Order Entry, you can also print a report of commissions earned in Order Entry.
For an overview of sales commission options, and to find out how commissions are calculated and how to print the Salesperson Commission report, see the Order Entry help.
Choosing Commission Options
If you use Sage 300 Order Entry, Accounts Receivable can calculate commissions earned by salespersons using the data from invoices and credit notes. You can print this information on the Salesperson Commissions report in Order Entry. For more information, see the Order Entry help.
The calculation of sales commissions depends on:
- Whether you track commissions by sales or margin. If you track commissions by sales, Order Entry calculates commissions as a percentage of the sales amount. If you track commissions by margin, the calculation is based on the margin amount.
You specify how to track commissions on the Processing tab of the O/E Options screen in Order Entry.
- The rates set for the item categories in Inventory Control or the commission rates set for the salespersons in Order Entry. This is not a choice on the A/R Options screen. Order Entry uses the rate specified in the item category record in Inventory Control unless the rate is 0.00—in which case, it will use the salesperson's rates defined in Order Entry.
Setting Up Commissions
To calculate commissions on sales of inventory items, you must set up your system as follows:
- Select the Track Commissions option on the Processing tab of the O/E Options screen. You must also specify the method for calculating commissions (Sales or Margin).
- Select the Commissions option on the Salesperson Commission Rates screen for each salesperson who is paid commissions.
- Select the Allow Commissions option for each item category on which commissions can be earned. (Use the Categories screen in Inventory Control.)
- Enter commission rates for categories. For more information, see the Inventory Control help.
- Assign commission percentages to the item categories in Inventory Control and/or to the salesperson in Order Entry (on the Salesperson Commission Rates screen).
Each item category in Inventory Control can have a single commission rate. If you want to use a different rate, you can change the category for any item when you add it to an order.
If you use the commission rate structure on the Salespersons screen, you can use up to five rates for each salesperson, with each rate applying to a different range of sales amounts (such as to the first $5,000, the next $5,000, and so on).