The system can automatically track sales by Sales Rep and determine the sales commission due to each based on their associated commission rates. 

Relationship to Products Items

Product/Service Groups determine the Commission Rates and Amounts as these are directly related to product sales. 

Set up all the relevant product groups using Codes Maintenance.

Then ensure that your Products are properly assigned to their relevant Product Groups in the Items records.

Re-allocating Products/Product Groups and/or changing Commission Rates will only impact future transactions and calculations and will have no retrospective impact.

Recommended Transaction Types

As with Sales Analysis Reporting, only Sales Invoices and Sales Credit Notes contribute to the calculations, so take care with Discounts and Rebates. Where relevant, use Credit Notes to ensure proper recording and reporting of Net Sales rather than Journal Credits. 

See:

Using Codes Maintenance‍ 

Managing Product and Service Type Items‍ 

Creating Sales Item Invoices‍ 

The first step is to set up your sales reps by creating a sales rep code and recording the name, address and contact information of the relevant employees within your organisation. 

1. Go to AR > Sales Representatives .
2. Already added sales reps will appear in the side panel. Click on Add New Sales Rep.
3. In the header, complete the Sales Reps’ details.
4. The Item Groups that were set up in Codes Maintenance‍ will load. Next, set the commission type and rates for them.For items not assigned to a group, use the first row, ‘Items not assigned to an Item Group’. 
   • In the Type column, select the method of calculating sales reps commission rates for that group - Fixed or Margin. Sales Reps do not need to use the same method for all their groups.
     • Fixed: The sales commission is a fixed percentage of the total net sales (i.e. invoiced) value.  Therefore, if the net sales value is €100, you can specify that the sales rep would earn a certain percentage of that value. The Commission column will show a single rate per group. Enter the desired percentage in the field.
     • Margin: The sales commission is a percentage of the gross profit margin earned on the sale. This means that it is calculated based on the sales value less the cost of the item before taxes. If you choose this option, you can set up different commission rates to apply for different margin bands.  For example, you could have a 5% commission for sales that achieve a 10% gross margin and an 8% commission on sales that achieve over 10% gross margin. Set up as many bands as you wish. The Commission column will show different rates for each margin band. After clicking Add/Edit Bands,  click Add New Band and enter the rates.
5. Click Save after making any changes.

Nominating Sales Reps in the Customer Master Record

To allocate Sales Reps to individual Customers:

1. Go to AR > Customers and open the relevant Customer Master Record.
2.  In the Account Settings tab, select from the Sales Rep. dropdown.

Nominating the Sales Reps at Transaction stage

You can override the default Sales Rep and select another one at the time of Invoicing in the Sales Rep dropdown.

For this invoice, the selected Customer has an associated Sales Rep that is added automatically, and the ‘General Office’ line item belongs to the Product Group ‘Office’:

The associated Sales Rep earns a Fixed Rate Commission of 5% for profits associated with this group:

The ‘Sales Commissions Report’ gives a breakdown of the figures. The Sales Rep earned EUR 3.00 for this sale as the product cost was EUR30 and the sale price was EUR60, making a gross profit of EUR30:

For this invoice, the selected Customer has an associated Sales Rep that is added automatically, and the ‘Weights’ line item belongs to the Product Group ‘Equip’:

The Sales Rep earns a Margin Rate Commission of 5% for profits below 20% and 10% comission if profits are above 20% on this group:

The ‘Sales Commissions Report’ gives a breakdown of the figures. The Sales Rep earned EUR 16.00 for this sale as the product cost was EUR240 and the sale price was EUR400, making a gross profit of EUR160. This put them in the 10% commission bracket: