9.11 Create Commission Plans (One Time & Recurring)

A sales agent can also be applied to a customer's account. This is common practice when all orders pertaining to that particular customer are subjected to a contracted commission amount/percent with a particular sales agent. So for example, ACME Company, has a contract with sales agent, Matt Mason. Commission will be calculated on all orders that ACME Company signs up for. All commission will go to the assigned sales agent, in this case, Matt Mason.

To set this up the first step is to create a commission plan.

1.From [Plans>>Commission Plans>>Create a Commission Plan] (Figure 1)

Figure 1: Create a Commission Plan

2. From the Create a Commission Plan screen:

Figure 2: Setting up the Commission Plan Details

Figure 3: Setting up the Quota based commission

For Eg: Lets say a sales agent has to make 10 million worth of sales where his qualifying quota percent is 15% comm. This means that he/she would get 15% commission if he hits 10 million. He can also sell lesser than 10 million and get low commission percentage, lets say 7% . This is enabled by creating multiple commission plans and quotas and assigning the same to the sales agents

Figure 4: Setting up the Quota based commission

Check mark the "Commission Plan Is Active" to activate the commission plan.

For the Commission Charges, enter a commission code, commission text and the accounting code under which the commissions are recorded in your ERP system. 

Select the Commission type: 

Amount - When amount is selected, this flat amount is used as commission on each invoice generated for this Plan.

Example: If $100 is the commission amount, for every invoice that is generated for the monthly security plus plan, $100 is calculated as commission.

Percent - If a percent is selected, then the commission is the Invoice amount times the percent.

10% of the invoice amount.

Note: The commissions thus calculated are NOT deducted from the invoice, nor will they appear on the invoice.

Charge Type: Describes the frequency with which the commission is calculated. 

One Time Charge - As the name suggests, commissions will be calculated once, on the first invoice generated.

In the above example, figure 2, we have a 5% commission, this would be charged on the first invoice generated from the order the commission is associated with.

Recurring Charge - Recurring commission charges are applied on all invoices generated from the order the commission is associated with.
Example: 5% commission recurring charge is applied on every invoice generated.

Date Based Recurring Charge - Recurring commission charges are applied on all invoices until the selected date.
Example: If the time frame selected under the date based charge type is 2 years, commission will be calculated on all invoices generated for a period of 2 years.

Date Based One Time Charge - If commissions change from a particular time period of say 1 year, this charge type is selected. 


Commissions for Year 1 = 5%
Commission for Year 2 = 3%
Commission for Year 3 = 1%

For Year 1 enter commission plan details as in Figure 3

Figure 5: Date Based Commission Charge

To enter commissions for Year 2 & 3, click on the link "Add More Commission Charges" and in the "Date to Charge" enter 2 and 3 years respectively.