Set Sales Commission Options

Select Sales Commission Options in System Options Maintenance (XM) to set sales commission parameters for your enterprise.

  1. Set these enterprise-wide options:

Field Name

Type / Max Length

Action / Description

Commission processing active?

Optional

Select if you want to activate the sales commission system or leave blank if you do not.

If you select this option, the system calculates commissions when you run the AR Invoice Register (RR) program.

If you leave blank, you must calculate commissions manually. If you leave blank, the Comm splits button is available for commission entries in the Sales Order Maintenance (OE), One-Step Invoice Entry (RE), EDI/Sales Quote Maintenance (QOE), and RMA Maintenance (RMA) programs.

Payable at time of  I=Invoice or P=Paymnt

Optional
1 alphanumeric

Select I if you pay commissions at invoicing or select P if you pay commissions after you process the customer's payment.

Caution

Be sure that you have processed all transactions that affect commissions before you change this option.

The AR Invoice Register (RR) calculates commissions. If you select I, commissions are eligible for payment after you run AR Invoice Register.

If you select P, commissions are not eligible for payment until you enter payment in the Cash Receipts Entry (RCE) and run the Cash Receipt Register in that program.

The Sales Commission Inquiry (SCQ) and Sales Commission Maintenance (SCM programs identify whether commissions are eligible for payment.

Commission based on P=Price or M=Margin

Optional
1 alphanumeric

Select P to base commissions on selling price or select M to base commission on margin.

Margin is: (Selling price - Standard cost) x Quantity ordered

If the item is sold below cost, the commission amount will be negative. If you selected A for the Upd commissions to A=AP, F=File, N=None option, the system generates a credit memo to offset other commissions.

Enable commission rates per line?

Optional

Select to calculate commission payable amounts for each sales order line using the line's sale rep or leave blank to calculate commission for the order using the sales header's rep.

Select this option if you pay a different commission rate per item.

Caution
This option cannot be changed
after you begin processing commissions. If you are not sure whether to select it, you should discuss the implications with a technical support representative.

If you select this option, you must click Detail in the Sales Commission Maintenance (SCM) and Sales Commission Inquiry (SCQ) programs to display commissions per line.

If you select this option and you pay a set amount for order totals within a range (for example, $3,000 for orders between $15,000 and 30,000), no lines may fall within the range. Or you may pay $3,000 multiple times for an order because several order lines are within the range.

The Sales Order Maintenance (OE), One-Step Invoice Entry (RE), EDI/Sales Quote Maintenance (QOE), and RMA Maintenance (RMA) programs display a Comm splits button that allows you to change reps and splits per line. This button is available even if Commission processing active? is not active.

If you leave blank, Sales Commission Maintenance displays and allows maintenance of commissions for the order header.

Upd commissions to A=AP, F=File, N=None

Optional
1 alphanumeric

Select how you want to pay commissions:

Select

To

A

Process commission payments to sales reps through accounts payable. The system creates a SLSCOMM01 batch in the AP Invoice Entry (NE) program and adds to that batch when you run the Sales Commission Processing (SCR).

Direct payment requires that each sales rep be set up as a vendor in Vendor Maintenance (VM) program and that you enter that vendor number in the Sales Rep Maintenance (SM) program.

After you run the AP Invoice Register, you process payment the same way you do for other vendors.

F

Create a file for commission amounts that you can export to your payroll system. In the Sales Commission Processing (SCR) program, enter the name of the file for the Output device if updating comm to a file Program option.

N

Not process payments automatically; you can issue checks manually, using the listing output by the Sales Commission Processing (SCR) for the amounts to be paid.

Excl header disc from comm amt?

Optional

Select if you want to deduct order header discounts from the amount subject to commission or leave blank if you do not.

If you select this option, the amount subject to commission is the Gross amount - Order header discounts.

If you leave blank, the amount subject to commission is the gross amount, including any Gross %, Accrued %, and Misc % order header discounts.

Excl line disc from comm amt?

Optional

Select if you want to deduct an order line discount from the amount subject to commission or leave blank if you do not.

If you select this option, the amount subject to commission is (Selling price x Quantity shipped) - Line discount.

If you leave this option blank, the amount subject to commission is Selling price x Quantity shipped.

Incl freight in comm amt?

Optional

Select if you want to include freight in the amount subject to commission or leave blank if you do not.

If you select this option, the amount subject to commission is Gross amount + Freight.

If you leave this option blank, the amount subject to commission is the gross amount.

Incl misc charges in comm amt?

Optional

Select if you want to include miscellaneous charges in the amount subject to commission or leave blank if you do not.

If you select this option, the amount subject to commission is Gross amount + Miscellaneous charges.

If you leave this option blank, the amount subject to commission is the gross amount.

Excl credit adj from comm amt?

Optional

Select if you want to deduct a credit adjustment from the amount subject to commission or leave blank if you do not.

If you select this option, the amount subject to commission is Gross amount - Credit adjustment amount processed with the Cash Receipts Entry (RCE), AR Adjustments Entry (RB), or One-Step Invoice Entry (RE) program.

If you select this option, the adjustment to the amount subject to commission displays in the Sales Commission Processing (SCR) program.

If you leave this option blank, the amount subject to commission is the gross amount.

Excl debit adj from comm amt?

Optional

Select if you want to include a debit adjustment in the amount subject to commission or leave blank if you do not.

If you select this option, the amount subject to commission is Gross amount + Debit adjustment amount processed with the Cash Receipts Entry (RCE), AR Adjustments Entry (RB), AR Adjustments Entry (RB), or One-Step Invoice Entry (RE) program.

If you select this option, the adjustment to the amount subject to commission displays in the Sales Commission Processing (SCR) program.

If you leave this option blank, the amount subject to commission is the gross amount.

Excl terms disc from comm amt?

Optional

Select if you want to apply the terms discount to the amount subject to commission or leave blank if you do not.

If you select this option, the amount subject to commission is Gross amount - terms discount amount.

If you select this option, the adjustment to the amount subject to commission displays in the Sales Commission Processing (SCR) program.

If you leave this option blank, the amount subject to commission is the gross amount. The terms discount is not applied.

Excl write-offs from comm amt?

Optional

Select if you want to deduct a write-off from the amount subject to commission or leave blank if you do not.

If you select this option, the amount subject to commission is Gross amount - Write-off amount processed with the Cash Receipts Entry (RCE) or AR Adjustments Entry (RB) program.

If you select this option, the adjustment to the amount subject to commission displays in the Sales Commission Processing (SCR) program.

If you leave this option blank, the amount subject to commission is the gross amount.

Non-comm default for non-stock items

Optional
1 alphanumeric

Select Y if you want the Non-commission? field to be selected when you enter a non-stock item in the Sales Order Maintenance (OE), One-Step Invoice Entry (RE), or EDI/Sales Quote Maintenance (QOE) program.

Select N or leave blank if you do not want to select the Non-commission? field when you enter a non-stock item.

The operator can change the setting of this field if necessary.

Apply splits to flat amount?

Optional

Select if you want the sales rep split to apply to the flat amount or leave blank if you do not.

Set a split for each rep in the Sales Rep Assignment (SRAM) program. Enter a flat amount in the Commission Rate Maintenance (SRCM) program.

If you select this option, the system calculates commissions: ((Amount subject to commission x Rate) + Flat amount) x Split

If you leave blank, the system calculates commissions: (Amount subject to commission x Rate x Split) + Flat amount

Process comm for progress payments?

Optional

Select if you want to pay your sales reps commission when you receive partial payments (for example, 1/3, 1/3, and 1/3) from customers or leave blank to pay commission for the total amount of the order.

If you select, you must also select P for the Payable at time of I=Invoice or P=Paymnt option, set up a terms codes with the Progress Payments Terms (RTER) program, and assign a code to the appropriate customer.

Always use reps on shipment?

Optional

This option determines how debit and credit memos attached to invoices are updated to the sales commission files: Leave blank to use sales reps/splits from the commission files for the original invoice; select the option to use the latest shipment in determining which reps/splits are used.

If this option is selected and you create a credit memo against an invoice and change the reps/splits, you could end up crediting different reps/amounts than were on the original invoice. Likewise, if you change reps/splits in Sales Commission Maintenance (SCM) and make subsequent adjustments to the invoice, those additional transactions may have to be changed to reflect the new reps/amounts as well.

  1. Choose the appropriate options:

To

Do This

Change an option

Click Modify.

Exit without saving these options

Click Cancel.

Print these options

Click Print. See Print an Inquiry.

Accept these options and exit

Click OK.

  1. Choose the appropriate options when you click OK or Cancel:

To

Do This

Display a category of options

Highlight the line and click Select or double-click the line.

Exit the program

Click Exit.