Code Used for Calculation: Additional Details

1. Code Used for Calculation: Commodity Code vs Commission Code

   Each Product Master record (IM13) contains a Commission Code that is used to extract the appropriate commission rate for each invoice line. The Key to the Commission Rate record (defined in SA02) is Sales Rep + Customer Commission Group + Sales Source + Order Type + Product Commission Code. This is how you can achieve assigning different commission rates depending on who made the sale, who bought the goods, how the order was obtained, the type of order and/or what product was sold.

   The Product Commission Code can be a unique code that is defined by the user in SA04 or can simply be set equal to the product's Commodity Code. This is dictated by the 'Code Used for Calculation' field in CC00/OE.

   If the 'Code Used for Calculation' is set to Commodity code:

   • The Commodity Code assigned in IM13 is automatically written into the Commission Code field in the Inventory Master record (this happens behind the scene).

   • The Commission Code input field is disabled and not visible in IM13.

   • When new Commodity Codes are defined in IM09, corresponding records are automatically written into Maintain Commission Codes (SA04), thereby maintaining a one-to-one relationship between these two files. In effect, the product's Commodity Code and Commission Code are one and the same.

   • Technically, the product's Commission Code (which is the same as the Commodity Code) is used when building the commission rates in Maintain Commission Rates (SA02).

   If the 'Code Used for Calculation is set to Commission code:

   • Commission Codes are defined by the user in SA04.

   • The Commission Code input field is enabled on the Selling folder of IM13.

   • The Commission Code is assigned by the user and is written to the Commission Code field in the Inventory Master record.

   • The assigned Commission Code is used when building the commission rates in SA02.

   • You would use unique Commission Codes (not equal to the Commodity Code) if your commission rates did not relate to what Commodity a product belonged to but are based on a broader classification. For example, all products pay out the same commission rate except for some that pay no commission (i.e. 'normal' vs 'exempt' products).

2. Changing 'Code Used for Calculation' from Commodity Code to Commission Code

   You are allowed to change the setting of the 'Code Used for Calculation' field from Commodity Code to Commission Code, but not vice versa. The impact is as follows:

   • SA04 is already populated with Commission Codes = Commodity Codes. Any new codes will need to be defined.

   • The appropriate Commission Code will need to be assigned on applicable products.

   • Commission Rate records need to be reviewed/created in SA02 to incorporate any new Product Commission Codes.

   • When new Commodity Codes are added in IM09, records will no longer pass to SA04.

   • The product's Commission Code is stored in the order detail line record but the Commission Rate is not picked up until the order is invoiced. If the product's Commission Code changes in between entering the order and invoicing the order :
     • The flag 'Use Order Commission Code' (set in CC00/Order Entry) is examined to determine which Commission Code to use to extract the commission rate. If 'Use Order Commission Code' is ON, then the Commission Code from the order detail line (i.e. the old code) is used. If 'Use Order Commission Code' is OFF, then the Commission Code currently in the Inventory Master record (i.e. the new code) is used.

     • Note: The 'Recalculate from Rates' option in Maintain Invoice Commission (SA54) uses the Commission Code that was passed into Invoice History. If you remove Commission Rate records (SA02) and then use the 'Recalculate from Rates' option, you may not get the results you expect.