Commission plans and components

A plan says how a salesperson earns. A plan has one or more components, and each component pays in one way, such as 5% of sales or 10.00 per invoice. Search for Commission Plans to see your plans.

Commission Plans shows each plan's type, when it pays and how many components and assignments it has.

Create a plan

1. On Commission Plans, choose New.
2. Enter a Code, or leave it blank to take the next number, and a Description.
3. Choose the Plan Type:
   • Main: the salesperson's normal plan. A salesperson has one main plan on any date.
   • Add-on: pays on top of the main plan. Every add-on that applies is added up. Use add-ons for key-account bonuses and SPIFFs.
4. Choose Pay When: Setup Default, On Posting, When Fully Paid or As Customer Pays.
5. In Components, add a line and choose the Method. See Commission methods.
6. With the component selected, choose Rate Lines and add at least one line, such as All Customers, All Products, Rate % 5. See Rate lines and costs.
7. In Assigned To, add the salespeople or teams who use the plan. See Assign plans.

A plan card: the plan and its components. Assigned To lists who uses the plan.

Component settings

Field	What it does
Method	% of Sales, % of Margin, Margin Band Rate, Amount per Unit, Fixed per Sale, or a period method such as Sales Tier.
Apply Deductions	Lower the base by the deduction on the sales document, such as free freight.
Apply Customer Terms	Use the bill-to customer's commission terms.
Allow Rate Override	Let a rate typed on the sales document or on a credit replace the plan rate.
Measure Margin Over	For Margin Band Rate: the line, the document, or the document per commission group.
Fixed Amount Per	For Fixed per Sale: once per document or once per line.
Period Length, Period Cap (LCY), Period Minimum (LCY)	For commission that depends on a whole period. See Period close and tiers.
Pay First, Pay First Of	Pay only each salesperson's first units or sales. See Pay only the first units or sales.

Each component earns on its own and gets its own commission entry. A plan with 3% of sales and 10.00 per document pays 60.00 + 10.00 = 70.00 on a 2,000.00 invoice, as two entries.

Change or stop a plan

• To change what a plan pays from a date, add a rate line with a Starting Date. Older sales keep the rate they were posted with.
• To move a salesperson to another plan, end the old assignment and start a new one.
• Blocked stops a plan from paying on documents posted while it is blocked. Posted commission does not change.

Example: a typical setup

Plan	Type	Assigned to	Pays
STD	Main	All Salespeople	5% of sales
SENIOR	Main	Salesperson MAYA	20% of margin
KEY	Add-on	Salesperson MAYA	1% of sales on customers in commission group KEY
SPRING	Add-on	All Salespeople	25.00 per case of item group TULIP, 1 March to 30 April

Maya earns from SENIOR, KEY and SPRING. Everyone else earns from STD and SPRING.