Commission Set Up / Reporting Overview

Your commission reporting needs dictate how you will initialize the Commission module, define the commission rates, link Customers to those rates and determine the report program you use to report commission. Some of the options available include:

• You may choose to pay commission upon issue of Invoice or upon payment of the Invoice.
• The commission rate may be the same for all Customers for a Sales Rep or may vary depending upon the Customer sold to.
• The commission rate may be the same for all Products or may vary depending upon the Product sold.
• Commission may be calculated on the Sales Dollars or on Gross Profit.
• Commission is calculated by Schedule Invoices/Credits (IN43) using the sales rep on the invoice header + commission group from the customer master file record (SU13) + commission code from the product master file record (IM13). Note: The sales rep on the invoice header defaults to the sales rep in the SU13 record but could change if a different rep is assigned in a ship-to record (SU14) or is overridden by the operator in the order/invoice header.
• Print Outstanding Commission Report (SA56) can be set up to link to Accounts Payable and automatically create an Invoice for commission payable.
• Sales Rep copies of the Invoices may optionally be printed as supporting documents to their Commission Report.

There are 3 commission reports available:

1. Print Commission Report (SA51) reports commission summarized by Sales Rep/Customer Commission Group/Product Commission Code. This report does not report at the Invoice level. It does show MTD/YTD/LYR statistics. SA51 has Current/Next month logic and the stats in file SACM are rolled by Close Sales Fiscal Period (SA89) when an Invoicing period is closed. SA51 must be printed for the current period open before SA89 is run to close the Invoicing period.

2. Detailed Commission Report (SA60) reports commission by Sales Rep/Customer/Invoice. It reports Commissionable Sales Dollars, Commission Amount and (optionally) Gross Profit Dollars/Percent. SA60 has Current/Next month logic and the stats in file SADC are rolled by SA89 when an Invoicing period is closed. SA60 must be printed for the current period open before SA89 is run to close the Invoicing period.

3. Print Outstanding Commission Report (SA56) reports unpaid commission records by Sales Rep/Customer/Invoice. It does not have Current/Next month logic and is not tied to month end or running SA89; it reports unpaid commission records for the date range entered by the operator. If you pay commission upon payment of the Invoice, then you must use this commission report. The Invoice total (not commissionable sales dollars) and total payments/adjustments against the Invoice are reported. Once the outstanding balance of the Invoice is zero, then the commission amount is deemed payable by SA56. If you pay commission upon issue of Invoice, you may still choose to report commission using SA56 to take advantage of the interface option to A/P; if so, then all unpaid commission records reported are deemed payable no matter if they are fully paid or not. For more information on the Unpaid Commission File, click here .

Setup Steps:

1. Company Control Initialization (CC00/Order Entry) contains a flag that dictates if commission is paid upon issue of Invoice or upon payment of Invoice. If the 'Payable Upon Receipt of Payment' field is selected, then SA56 must be used to report commission.

2. Link Customers to a Commission Group:
   • Create Commission Group Codes in Maintain Commission Groups (SA01).
   • Assign a Commission Group Code to each Customer in Maintain Customer Master (SU13/Invoicing).

3. Link Products to Commission Code:
   • CC00/Order Entry contains the control flag that dictates if commission rates are assigned per the Product's Commodity Code or per a user-defined Product Commission Code. If the 'Code to Use for Calculation' field is set to Commission, then you will create/assign Commission codes that group Products for commission purposes. If the 'Code to Use for Calculation' field is set to Commodity Code, then the Commission Code = Commodity Code and the assignment in Maintain Inventory Master (IM13) is automatic (and behind the scenes).

   • Create Commission Codes in Maintain Commission Codes (SA04).

   • Assign a Commission Code to each Product in IM13/Selling (not required if 'Code to Use for Commission' in CC00/Order Entry is set to Commodity Code).

4. Build Commission Rate Records:
   • In Maintain Commission Rates (SA02), the key to the Commission Rates record is Sales Rep + Customer Commission Group Code + Sales Source + Order Type + Product Commission Code. This is how you can assign different commission rates depending on who the Sales Rep sold to and/or depending upon what the Sales Rep sold.

   • In SA02, you also indicate if commission is calculated based on Sales Dollars or Gross Profit. If calculated on Gross Profit, there is a flag in CC00/Order Entry that indicates if Gross Profit is calculated using Average Cost or Replacement Cost. If 'Commission Cost' is set to Replacement, then the Gross Profit reported on the commission reports will be different than on all other Sales reports.

5. Link Sales Rep for auto A/P Invoice Generation and Invoice Copies:
   • In Maintain Support Tables (SU09/Sales Reps), enter the Vendor Code for the Sales Rep. Upon acceptance of SA56, you may choose to automatically generate A/P Invoices for the commission payable. This will only occur if a Vendor Code is assigned to the Sales Rep.

   • If Vendor Codes are assigned to Sales Reps, then SA56 will interface to Enter Invoices (AP30) for automatic creation of commission Invoices. In Maintain Operator Password/Privilege (CC03), the Operator authorized to run SA56 must also be authorized to run AP30.

   • Also, in SU09/Sales Reps, if the 'Invoice Copy Required' field is selected, then Sales Rep copies of Invoices will be printed by Print Sales Rep Copy (IN51). Copies are printed for Invoices processed since the last running of IN51; this program is not tied to month end or running SA89. They print in Sales Rep/Invoice Number sequence so sorting is not required. It is intended that these Invoice copies are distributed to the Sales Reps as back up to their commission report.

Note: If you are NOT using SA56 for Commission Reporting, file SAUC accumulates records until they are reported and archived by the acceptance routine of SA56. You may wish to empty this file from time-to-time by using Unpaid Commission Maintenance (SA55) to recall commission records for a Sales Rep and delete them by using Delete Header .