Enter Commission Agreement

Explanation

A commission is a fee paid to an agent (an external company) or an employee (internal salesperson) for transacting a piece of business or performing a service. It is fairly common to pay commissions for sales. To make this possible, you must connect the customer to one or more commission receivers. You start by setting up basic information about commission receivers and commission receiver groups.

You must also create a commission agreement to exactly control how and when commissions are to be calculated. You can enter more than one agreement line to each commission agreement. You can set a wide range of terms, consisting of any combination of the following:

Entering a commission agreement is a two-step process. First, you enter general information about the criteria for the commission and the validity period. You can enter any combination of available criteria. Second, you can define ranges for the commission agreement, if applicable.

You can get more general information about commission agreements in the About Commissions help file.

When updating a commission agreement you must have specified the latest date of validity before a new revision can be created.

Prerequisites

• Range Type must be defined before you enter a commission agreement line.

System Effects

You can start to apply the commission agreement as soon as it has been entered.

Window

Commission Agreement
Commission Agreement Line

Related Window Descriptions

Commission Agreement
Commission Agreement Line

Procedure

To make a complete commission agreement entry you must go through all the below steps. You must however not do the complete entry at the same time.

Start in the Commission Agreement window:

1. Select New.
2. Enter the Agreement ID and a description.
3. Enter the first date of validity of the agreement.
4. Optionally, enter the last date of validity of the agreement. If you do not do so, the present revision of the commission agreement will run indefinitely.
5. Enter the date of the agreement. Today's date is the default.
6. Decide whether the commission should be calculated on order entry or once the invoice is prepared.
7. Enter the currency to be applied, either manually or by using the List of Values.
8. Optionally you can add notes and document text.
9. Save when completed.
10. Go to the lower part of the window.
11. Select New.
12. Enter the sequence order number, i.e., the order in which the commission agreement lines should be taken into consideration.
13. Select the calculation method.
14. Optionally, enter additional information, depending on the commission profile you want to create.
15. If you want to apply more than one commission agreement line, repeat steps 11 through 14 for each additional line.
16. Save when completed.

Continue in Commission Agreement Line window. You can reach this either from the IFS Navigator or from the Commission Agreement window by using the Operations menu.

17. Select the appropriate agreement line number.
18. Review and, if applicable, enter the percentage, range type, and calculation method in the upper part of the window. Save your changes.
19. Go to the lower part of the window.
20. Select New.
21. Enter the lowest level to be reached before the set commission calculation starts.
22. Enter the commission percentage or commission amount, depending on the range type, that will be applied on the commission level.
23. If you want to enter more than one commission level, repeat steps 20 through 22 for each additional line.
24. Save when completed.