Pay commission
Pay commission with a settlement
Pay salespeople by purchase invoice, outside Business Central or through payroll, and print the payment advice.
updated: applies-to: 2.0.0.0
A settlement pays your salespeople the commission that is payable. Each salesperson is paid their own way: outside Business Central, through a purchase invoice to their vendor, or through payroll.
Before you start
On each Salesperson/Purchaser card, in the Commission group, set the Commission Payout Method:
- Outside Business Central: you pay by check, bank transfer or another system.
- Purchase Invoice: enter the Commission Vendor No., and set the Commission Expense Account on Commission Setup.
- Payroll: enter the Commission Payroll ID. See Export commission to payroll.
Create and post a settlement
- Search for Commission Settlements and choose New, or choose New Settlement on the role center.
- Fill in the Description, Posting Date and Pay Up To Date. To pay some salespeople only, use Salesperson Filter.
- Choose Suggest Lines. You get one line per commission entry: what is payable up to the Pay Up To Date, less what was already paid.
Suggest Lines fills in what each salesperson is owed.
- Check the lines, then choose Post.
- Outside Business Central and Payroll lines are paid at once.
- Purchase Invoice lines create one purchase invoice per vendor, on the Commission Expense Account, with the settlement number as Vendor Invoice No. The commission counts as paid when you post that purchase invoice.
- Choose Payment Advice to print, for each salesperson, the documents and amounts paid.
What Suggest Lines leaves out
- Entries on hold.
- Entries already on another settlement that is not posted.
- Salespeople whose lines add up to less than zero. You get a message, and their balance carries forward to the next settlement.
Example:
| Salesperson | Lines | Total | Result |
|---|---|---|---|
| MAYA | +340.00, +50.00, +250.00, -30.00 (a return) | 610.00 | Paid 610.00. The -30.00 line is a clawback. |
| DANIEL | +20.00, -80.00 | -60.00 | Left out. The balance carries forward. |
Undo a payment
- Outside Business Central and Payroll lines: choose Reverse on the posted settlement.
- Purchase Invoice lines: post a purchase credit memo applied to the posted purchase invoice.
The commission becomes payable again. Deleting an unposted purchase invoice from a settlement deletes its settlement lines, so the commission can be suggested again. A posted settlement cannot be deleted.
From the settlement
Use Purchase Invoices, Posted Purchase Invoices and Paid Entries to see what the settlement created. On a line, Ledger Entry opens the commission entry.