Switching Commission Payment Method

1. From the time the invoice is issued to the time the invoice is paid; and,
2. From the time the invoice is paid to the time the invoice is issued.

 
i) Switching from paying commission upon ISSUE of invoice to the time of the PAYMENT of the invoice:

Currently the Payable Upon Receipt of Payment flag is deselected in CC00/OE. This flag needs to be turned on (i.e. selected), but timing is critical. No matter if the flag is on or off, commission records get written to 3 different commission files that, in turn, produce 3 different commission reports: SA51, SA56 or SA60. The expectation is that you will decide on a changeover date and pay out commission up to that date. Then the flag will be turned ON and from that date forward, you will begin using SA56 to pay out commission only when the invoice is fully paid.

These are the steps:

1. Run your regular commission report after the last invoice for the month has been processed.

2. It is now your objective to have commission records dated prior to the changeover date purged from the unpaid commission file (SAUC) prior to turning on the Payable Upon Receipt of Payment flag in CC00/OE.
   • If SA56 is the program that you already use to print your commission report, then print the commissions up to your changeover date (restriction 1) and archive those commission records. At this point the unpaid commission file (SAUC) should contain no old records dated up to your changeover date.

   • If you do not normally use SA56 for commission reporting, then you must clear old records out of the unpaid commission file (SAUC). It is possible that you may never have run this report before so it could be quite large.

   • In either case, run SA56 with a really OLD start date and set Restriction 2-Zero Commission to Yes. If there are any old records with a commission amount, those need to be dealt with; either delete them using SA55 or accept the report and archive them, but be careful they do not inadvertently generate an AP30 invoice. Note: Because the Payable Upon Receipt of Payment flag is still OFF, all reported commission records will be considered payable.

   • At this point the unpaid commission file (SAUC) should be empty or should only have commission records dated after the changeover date. You can confirm by reprinting SA56 with the same date range; there should not be any records reported.

3. If desired, you may wish to purge the commission archive file (SAUCH) using SA59.

4. Go to CC00/Order Entry and select the Payable Upon Receipt of Payment flag.

5. When using the pay-upon-payment commission method, SA56 is the program you must use to produce your monthly commission report. The next time you print SA56 you will notice that only invoices that have been fully paid (net unpaid column = 0.00) will show the commission amount in the commission payable column.

   Important Notes:

   • Once the Payable Upon Receipt of Payment flag has been turned ON, your procedure for SA56 will be to enter a start date that is far enough back to be sure any old invoices that have been paid recently will be included on the report.

   • The invoice date is compared to the start/end date range to determine whether or not a commission record is to be reported and if it is, then the program looks to see whether or not it is fully paid before deeming the commission amount to be payable.

   • There is no notion as to when the invoice was paid, only that it is paid at the time the report is printed. This condition manifests itself when you backdate the commission report. For example, if you print SA56 on August 7 up to July 31, commission for an invoice dated July 10, but paid on Aug 5, will report as payable on that July commission report even though it is not paid until the next month. This may affect when you print the commission report.

   • If you are switching to use SA56 as your commission report, you now have the option to have SA56 generate an invoice in AP for the commission payable amount. To do so, you must build a vendor record for the sales rep in AP13 and link that sales rep to the appropriate vendor code in SU09/Sales Rep. Upon acceptance of SA56, if the sales rep is linked to a vendor, then an AP invoice will be generated; otherwise no invoice is posted.

ii) Switching from paying commission upon PAYMENT of invoice to the time of the ISSUE of the invoice:

Currently the Payable Upon Receipt of Payment flag is selected in CC00/Order Entry, and SA56 is the program used to print the commission report. You will decide on a changeover date and pay out commission for all invoices that are fully paid up to that date. Then the flag will be de-selected and from that date forward, the expectation is that you will continue using SA56 to pay out commission but it will not matter if the invoice is paid or not; all reported commission records will be deemed payable.

These are the steps:

1. Run SA56 using a date range with the ending date set to your changeover date. Only reported commission records that are fully paid will be deemed payable; accept the report and archive the commission records.

2. Go to CC00/Order Entry and de-select the Payable Upon Receipt of Payment flag.

3. The next time you print SA56, all reported invoices will be deemed payable, whether they are paid or not. This report should have an OLD start date such that any old unpaid commission records are also reported and deemed payable. Once this 'backlog' of commission owing is processed, then your procedure can change to enter a date range that encompasses the actual start/end dates for the commission period. Because all commission records are deemed payable each time SA56 is printed, going forward there should not be a backlog of unpaid commission records.

4. Upon acceptance of SA56, the commission records are still archived and AP invoices are still generated if the vendor set up is defined for the sales rep in SU09/Sales Rep.