Periods, teams and targets
Period close, tiers, caps and minimums
Pay sales tiers, target and growth bonuses, caps and minimums when you close a period.
updated: applies-to: 2.0.0.0
Some commission depends on results over a whole month, quarter or year: sales tiers, target bonuses, growth bonuses, team overrides, draws, and caps or minimums. This commission is calculated when you close the period.
Set up a period component
- On the plan, add a component with a period method, such as Sales Tier, and choose its Period Length (Month, Quarter or Year).
- With the component selected, choose Tiers and add the tiers. A tier has From, Rate % and Fixed Amount (LCY). It ends where the next tier starts. Below the first tier nothing is paid.
Three tiers. What From means depends on the method.
The period methods
| Method | Pays | From means |
|---|---|---|
| Sales Tier | With Tier Calculation Progressive: each tier's rate on the sales within it, plus the fixed amount of each tier reached. With Retroactive: the highest tier's rate on all sales, plus its fixed amount. | Sales in the period |
| Target Bonus | The highest tier reached: its fixed amount plus its rate on the period's sales (on margin for a margin target). | % of the target reached |
| Growth | The highest tier reached: its fixed amount plus its rate on the sales above the same period last year. | This year's sales as % of last year's (110 means 10% growth) |
| Team Override | See Team override and team bonus. | The team amount |
| Team Target Bonus | See Team override and team bonus. | % of the team target reached |
| Draw / Guarantee | See Draws and guarantees. | No tiers |
Example, progressive sales tier with the tiers above: sales of 2,450.00 pay 10.00 + 20.00 + 13.50 + 50.00 = 93.50. Retroactive: 2,450.00 x 3% + 50.00 = 123.50.
A period component earns nothing on the invoice itself. It writes an earning line with the reason Paid at Period Close that holds the sale's base, which the period close counts. A linked return takes it back.
Close a period
- Search for Commission Periods and select the period.
- Choose Close Period. Business Central checks that the period is open and inside your allowed posting dates, and that shorter periods inside it are closed first (close the months before the quarter).
- Confirm. For every salesperson, the plans in force on the period's last day are calculated. One entry is posted per salesperson, plan and component, dated the period's last day and payable at once.
Close each month in order. Closed periods are locked.
Reopen Period reverses the period's entries and opens it again. Close it again to recalculate. Period Entries shows the entries and their reversals. Commission already paid when you reopen is taken back on the next settlement.
If sales are posted into a closed period, Sales After Close shows on the period and the Commission Setup Check lists it. Reopen and close the period again.
Period cap and period minimum
Any component can have a Period Cap (LCY) and a Period Minimum (LCY). When a period of the component's Period Length is closed, what the component earned above the cap is taken back, and when it earned less than the minimum (but something) the difference is paid on top.
Examples: earned 122.50 with a cap of 100.00, the close posts -22.50. Earned 2.75 with a minimum of 50.00, the close posts +47.25.
Good to know
- Sales counted by a Sales Tier or Target Bonus are the base of the component's own lines, after deductions and the salesperson's credit share. Growth, team methods and the scoreboard count all the salesperson's sales.
- Split and overlay credits both count for the person who has them.