1.1 Commission Plans
1. Setting up commission plans:
To start setting up a commission plan, get to the Commission section on the left side of the menu.
The commission plan is generally the type of commission arrangement you have, either with your employees or agents or with your suppliers.
This might be either:
- Revenue Commission (% of revenue/sales)
- Placement fees (fixed $ amount for each item sold)
Tiered commission plan (which would depend on the performance of the sales) - this is a bit more complicated structure and a good example would be:
semilimes ERP allows you to adjust to many types of scenarios for the commission plans. We will review some of them below.
To create a new commission plan, click on the plus button in the upper right corner:
Enter the name of your new commission plan:
The name should be something descriptive, something that would represent the type of commission plan you’re setting up.
The commission method is calculated based on the 2 scenarios, either once the customer submits payment (On Payment), or once the invoice is created/posted.
If you have not set up the commission product during the configuration process (which is unlikely), you need to create a new one by clicking the plus (+) button form the right side of the “Commission Product” tab.
Please note that the Commission product can only be a service type product. It can be included in the invoices to your suppliers as a line item of the type of the commission service. E.g., 20% commission Paints OUT POS, 10% commission Tiles IN PAY, where IN/OUT could signify whether this is a commission on products sold by your agents/employees or on products sold by your company and you want to invoice the commission towards your supplier, where POS/PAY could signify that this commission is calculated based on payment or posting method. Keying this hint in the product name could be useful in the invoice lines to your suppliers as well as differentiating the commissions for your agents.
To create a new Commission Product, fill in all required fields:
The product template is the ”service” that could be seen in the invoice towards your supplier so that you can get the commission on the products sold from these suppliers. Therefore, the name should be representative. The List/Cost Price can be 0 or any other amount, as this amount is not involved in the commission calculation.
Here is an example below:
Once done, save this Commission Product and, for your convenience, name this commission plan in the same way you have your commission product.
Then add the line with the products for which this commission plan is applicable:
You may add the sequence for this line item (this is only for the ordering of these lines on the invoices).
Category is helpful because it can group the products that are being applied with the respective commission. For example, you can have a category for 15% commission, or a category for 10%, etc.
To create one, just click on the plus (+) button on the right side of the field:
For the basic setting, please use some descriptive category, e.g.:
Then add the product for this commission and below that, input the formula for the commission calculation.
If you have a percentage-based commission, you should be using the multiplication, e.g. for 20%=>0.2, for 10% =>0.10, etc.
You may have a fixed amount per sold unit. In this case, just enter the commission amount instead of “amount”.
You can include as many products as you wish, as long as this product is eligible for 20% commission, otherwise create a new plan and commission product for the other % commission. E.g. 10%, 5%, etc.
This will be reviewed in our next articles.