Flat-rate commission

The simplest Bitta Commission plans pay one rate or one amount on every sale: a percent of sales, a percent of gross margin, a fixed amount per document, new customer or new product, or an amount per unit sold. This page shows you how to add these components to a plan version, what each measure basis counts, and how earnings, rounding and returns are calculated.

Before you start

• You need the Bitta Commission Plan Designer permission set and a plan whose current version is in Draft. See Commission plans.
• Flat Rate and Flat Amount are core models. Per Unit needs the Advanced commission models module in Commission Feature Management. See Optional modules.
• Percent of margin needs captured cost evidence for each sales document. See Capture posted sales.

The setup wizard can create these plans for you with the plan styles Percent of sales, Percent of margin and Amount per unit sold. Finish takes the plan live, and for Amount per unit sold it switches on Advanced commission models. See Run the guided setup.

Choose a model and a measure basis

Model	Pays	Measure basis	Rate column
Flat Rate	One percent of the cumulative base	Net Amount, Gross Margin, Monthly Recurring Revenue, Annual Recurring Revenue or Net New Monthly Recurring Revenue	Rate %
Flat Amount	A fixed amount per counted item	Document Count, New Customer Count or New Product Count	Amount (Company Currency)
Per Unit	A fixed amount per base unit sold	Quantity (always)	Amount (Company Currency)

What each basis measures for a credited sale:

• Net Amount: the credited amount of the posted sales line. From Release 1.2, Deduct From Base credit rules reduce it. See Customer agreements.
• Gross Margin: the net amount less the cost of the sale, times the credit share. From Release 1.2 the measure's Cost Basis decides which cost: Actual Cost (the default) from the cost captured for the sale, where later cost adjustments flow through, or a snapshot that never changes after posting: Dated Commission Cost or Supplied Cost. See Commission costs. With Actual Cost and no captured cost evidence, the calculation stops with BAACOMM-PUB-MEASURE-MARGIN-001.
• Quantity: the base quantity, times the credit share.
• Document Count: one per credited posted invoice line, times the credit share, so an invoice with several lines counts each line. A credit memo that is not linked to an invoice counts minus one. A linked return counts back the fraction of the original document it reverses.
• New Customer Count and New Product Count: one for the first invoice to a customer, or of an item to a customer.
• Monthly Recurring Revenue: the net amount divided by the billing interval of the recurring contract the sale belongs to. Annual Recurring Revenue is twelve times that. A sale without a recurring contract contributes nothing. See External sources.

Which models need a module

Models	Module needed
Flat Rate, Flat Amount, Progressive Tier, Tiered Rate, Retroactive Tier	None. These are the core models.
Per Unit, Formula, Bonus, SPIFF, Scorecard, Discretionary, Growth, Residual, Royalty, Manager Override, Pool, Ranking, Guarantee, Draw, Line Rate	Advanced commission models

While Advanced commission models is off, the Model field offers only the five core models. Switching the module off later refuses new advanced components and model changes, but components created while it was on keep their definition and keep calculating.

The Line Rate model (Release 1.2) pays every invoice line at its own rate. See Line rates and margin pools.

Add a flat component

1. In Tell Me, search for Commission Plans, select the plan and choose Open Current Version. On Commission Plan Version, choose Components.

2. Choose New Component. On Edit Commission Component, fill in the Component group:

Field	What to enter
Code	A unique code of at most 20 characters within the version.
Description	What the component pays for. Required.
Sequence No.	The order in which the component is evaluated. New components start at 10.
Weight Percent	The allocation weight, above 0 and at most 100. All components of the version must total 100 percent.
Effective From, Effective To	Dates inside the version dates. They default to the version dates.
Model	Flat Rate, Flat Amount or, with Advanced commission models, Per Unit.
Measure Basis	What the component measures when defaults are created. Per Unit always uses base quantity; Flat Amount counts documents unless you choose New Customer Count or New Product Count.
Cost Basis	Release 1.2. The cost a gross margin measure uses when defaults are created: Actual Cost, Dated Commission Cost or Supplied Cost. An existing measure shows its own cost basis.
Create Company Currency Defaults	Selected by default for a new component. It creates a measure matching the model and basis, a company-currency base, an On Posting 100% payment policy with zero hold and an earned expense and liability accounting policy. Existing setup is preserved.
Measure, Company Currency Base / Quota, Payment Policy, Accounting Policy	Clear Create Company Currency Defaults to choose existing active definitions with the lookup instead.

3. Choose OK. Saving creates the posted sales invoice and credit memo rules of the component. Choose Sales Rules to review them on Commission Sales Rules.
4. Select the component and choose Rates. On Commission Rates, keep the single row that starts at zero and has Open Upper Bound selected, and enter Rate % (for example 5 for five percent) or Amount (Company Currency).

5. Choose Save Rates. Flat Rate, Flat Amount and Per Unit accept exactly one row.

How the amount is calculated

Bitta Commission tracks a cumulative base for each participant, component and calculation period. For every sale it prices the whole cumulative base, rounds that entitlement, and records the earning as the difference from the entitlement already recognized. The parts therefore always add up to the rounded total for the period.

• Flat Rate: cumulative base times Rate %.
• Flat Amount and Per Unit: cumulative count or quantity times Amount (Company Currency).
• Rounding uses Calculation Precision on Bitta Commission Setup (0.01 by default) with nearest rounding. The calculation refuses any other rounding direction.
• A linked return lowers the cumulative base, so it records a negative earning. The original earning is never changed.

Worked examples

Component	Events	Earnings
Flat Rate 5% on Net Amount	Invoice 1,000.00, then linked return of 400.00	50.00, then -20.00 (net 30.00)
Flat Rate 10% on Gross Margin	Invoice 1,000.00 with captured cost 600.00	Margin 400.00, earning 40.00
Per Unit 5.00	10 units, then linked return of 2 units	50.00, then -10.00
Flat Amount 25.00 on Document Count	Three single-line invoices, then a linked return of 400.00 against a 1,000.00 invoice	75.00, then -10.00 (0.4 of a document)

What to check if it goes wrong

Symptom	What to do
BAACOMM-PUB-MEASURE-MARGIN-001	Gross margin needs captured cost evidence for the document. Run the native cost capture and calculate again.
Per Unit is not offered as a model	Switch on Advanced commission models.
"The measure basis does not fit the selected model"	Percent models need an amount measure, Flat Amount a count measure and Per Unit a quantity measure. Use Create Company Currency Defaults on a new component.
Save Rates refuses the schedule	Keep one row that starts at zero with Open Upper Bound, and a rate between 0 and 100 percent.

For the full list of Role Center entry points to these pages, see Commission reports.

What's next

Pay more as a participant sells more: Tiered commission.