This chapter contains these topics:
Section 41.4, "Setting Up Additional Commission Information (ECS),"
Section 41.5, "Setting Up Variable Commission Percentages within a Group (ECS),"
To define commission information in the ECS Sales Order Management system, you must associate a salesperson or a sales group, a commission percentage, a customer, and an order type.
You can specify the method that the system uses to calculate commission percentages. A commission percentage is the percentage of an order calculated from the gross margin or the order total that is distributed to a salesperson or a group of salespeople. If you set up commissions based on the gross margin, the system calculates the sales margin for the order or line before calculating commissions.
You can set up your commission information to reflect your company's sales environment. You can assign a maximum of two salespeople or two sales groups to each customer. After you enter an order and update customer sales, the system applies a calculated commission amount to the salesperson's address book number or the address book number of each salesperson in the sales group.
You can set up a sales group to distribute commissions to a group of two or more salespeople who contribute to a customer's sale. For example, if your sales group consists of a sales manager, account representative, and sales assistant, you assign a group code that represents the three salespeople. Sales groups are useful for identifying salespeople who are responsible for a customer's orders and maintaining multiple commission percentages.
You can set up commission percentages according to your company's commission payment policies. You can distribute commissions by entering a fixed commission percentage or variable commission percentages. When you set a fixed commission percentage, the system applies the same percentage for any order type that generates a commission.
You can also set variable commission percentages for an individual salesperson. The system includes variables, such as effective dates, order types, fixed costs and minimum amounts, before calculating commissions. For example, you might have a different commission percentage for sales orders than you have for blanket orders. Or, you might need to deduct fixed costs from an order before you calculate commissions.
If you assign a sales group to a customer, you can distribute commissions on a fixed commission percentage. You can set a fixed percentage that distributes the same commission percentage to each salesperson within a group. You can also set a variable commission percentage for the group or variable commission percentages for salespeople within the sales group. If commission percentages differ within a group, you can set up different commission percentages for each salesperson. For example, a manager might have a higher rate of commission than a sales assistant.
Verify that address book numbers exist for all salespeople. See Entering Basic Address Book Information (P01051) in the JD Edwards World Address Book and Electronic Mail Guide.
Verify that you have set the processing options for the Update Customer Sales program to update the commission information. See Section 21.1, "Updating Customer Sales (ECS)."
From ECS Sales Order Management (G4910), enter 29
From ECS Sales Order Management Setup (G491041), choose Commission/Royalty Setup
From Commission/Royalty Management (G4223), choose Related Salesperson
You set up a sales group to distribute commissions to a group of two or more salespeople who are responsible for a customer's order. For example, if your sales group consists of a sales manager, account representative, and sales assistant, you assign a group code that represents the three salespeople.
After you enter an order and update customer sales, the system applies the corresponding commission amounts to the address book numbers of the salespeople in the sales group.
Verify that you have set up a code for the sales group in the user defined code table (system 42, type RS). See Work with User Defined Codes in the JD Edwards World Technical Foundation Guide.
Complete the following fields:
Sales Code
Salesperson Number
Effective Date
Expire Date
Basis (optional)
Code - Line or Order (optional)
Related Percent (optional)
Topic | Description |
---|---|
Deleting a salesperson from a group | To delete salesperson information, inquire on the existing group, change the action code to C and clear out the information that is to be deleted. Simply placing a D in the action code is not a valid method for deleting records in this program.
Related Salesperson information is stored in the Related Salesperson file (F42003). |
Variable commission rates within a group | You can set a variable commission percentage for the group or variable commission percentages for salespeople within the sales group. If commission percentages differ within a group, you can set up different commission percentages for each salesperson. For example, a manager might have a higher rate of commission than a sales assistant. |
Setting fixed commissions with additional variables | You must assign each salesperson's address book number to the group code in Related Salesperson but specify the additional commission information and fixed commission percentage in Commission/Royalty Information. |
Import/Export | This program supports Import/Export functionality. See the JD Edwards World Technical Tools Guide guide for more information. |
From ECS Sales Order Management (G4910), enter 29
From ECS Sales Order Management Setup (G491041), choose Customer Billing Instructions
You can set up your commission information to reflect your company's sales environment. You can assign a maximum of two salespeople or two sales groups to each customer. After you enter an order and update customer sales, the system applies a calculated commission amount to the salesperson's address book number or the address book number of each salesperson in the sales group.
Assigning commission information includes the following tasks:
Assigning a salesperson or group to a customer
Assigning fixed commission percentages
You can set up commission percentages according to your company's commission payment policies. You can distribute commissions by entering a fixed commission percentage or variable commission percentages.
When you set a fixed commission percentage, the system applies the same percentage rate for any order. If you assign a group of salespeople to a customer, you can distribute commissions on a fixed commission percentage. When you set a fixed percentage for a group, the system distributes the same commission amount to each salesperson within a group.
You cannot assign commission percentages in the customer billing instructions for a salesperson or a sales group if you want the system to calculate variable commission percentages or set up additional commission information.
See Also:
To assign a salesperson or group to a customer
On Customer Billing Instructions.
To locate a customer, complete the following field:
Address Number
Access Billing Instructions - Page 2.
Figure 41-2 Billing Instructions - Pg 2 screen
On Billing Instructions - Page 2, complete the following fields:
Commission Code 1
Commission Code 2
To assign fixed commission percentages
On Customer Billing Instructions
Complete the steps to assign a salesperson or a group to a customer.
Access Billing Instructions - Page 2.
On Billing Instructions - Page 2, complete the following fields:
Commission Rate 1
Commission Rate 2
From ECS Sales Order Management (G4910), enter 29
From ECS Sales Order Management Setup (G491041), choose Commission/Royalty Setup
From Commission/Royalty Management (G4223), choose Commission/Royalty Information
You can include additional information before calculating the commission amount for a salesperson, a sales group, or salespeople within a group. The system compares the additional commission information, such as order type, fixed costs, and effective dates, to the order information before calculating the commission percentage. You can designate different commission percentages for order types. For example, you can designate that a salesperson earns 5% commission on a sales order, 2% on a direct ship order, and 7% on a blanket order.
You can also designate commission percentages for a limited period of time with variables that apply during the effective dates. For example, you might specify that a sales trainee earns a 7% commission on sales order totals during the training period. During that time, the order must meet a minimum gross margin amount or the system does not calculate commissions. If the order qualifies for a commission, then you must deduct fixed costs before calculating the commission percentage. After the training period, the salesperson earns a 5% commission on the gross margin of all orders after the system deducts the fixed costs. You can enter multiple commission percentages at one time when you anticipate changes in the future.
When you specify a commission percentage for a sales group in the commission/royalty information, the system applies the same commission percentage for every salesperson in the group. You can assign additional information to a sales group or salespeople within a group. To specify additional commission information for the group, you must assign the additional information to the group code. For example, you can specify that the group must meet the assigned minimum gross margin before the system calculates the commission. To calculate additional commission information for salespeople within the group, you can assign additional information to each salesperson's number.
Verify that a code for the sales group is set up in the user defined code table (system 42, type RS). See Work with User Defined Codes in the JD Edwards World Technical Foundation Guide.
Verify that the commission rate codes for each customer in the customer billing instructions are blank.
Verify that a salesperson or group has been assigned to the customer. See Section 41.4, "Setting Up Additional Commission Information (ECS)."
To set up additional commission information
After you complete the steps to assign a salesperson or group to a customer, you can set up additional information.
On Commission/Royalty Information
Figure 41-3 Commission/Royalty Information screen
Complete the following fields:
Commission Number
Code Type
Effective Date
Expire Date
Order Type
Load Factor
Fixed Costs
Minimum Gross Margin
To set a commission percentage for the group, complete the following field:
Commission Percent
Access the fold area.
Figure 41-4 Commission/Royalty Information (Fold Area) screen
Complete the following fields:
Division
Trade Class
Ship Method
Password
Topic | Description |
---|---|
Setting up variable commission percentages | You can set up variable commission percentages with additional commission information. You must verify that the commission percentage in Commission/Royalty Information is blank.
See Section 41.5, "Setting Up Variable Commission Percentages within a Group (ECS)." |
Setting commission information with passwords | You must enter a password to locate commission information in Commission/Royalty Inquiry or to change commission information if you have set up a password in Commission/Royalty Information. |
Import/Export | This program supports Import/Export functionality. See the JD Edwards World Technical Tools Guide guide for more information. |
From ECS Sales Order Management (G4910), enter 29
From ECS Sales Order Management Setup (G491041), choose Commission/Royalty Setup
From Commission/Royalty Management (G4223), choose Related Salesperson
You can also set a variable commission percentage for the group or variable commission percentages for salespeople within the sales group. If commission percentages differ within a group, you can set up different commission percentages for each salesperson. For example, a manager might have a higher rate of commission than a sales assistant.
Verify that a code for the sales group is set up in the user defined code table (system 42, type RS). See Work with User Defined Codes in the JD Edwards World Technical Foundation Guide.
Verify that the commission rate code fields for each customer in the customer billing instructions is blank.
If you set up variable commission percentages that have additional commission information, verify that the Commission Percent field on Commission/Royalty Information is blank.
Verify that a salesperson or group has been assigned to the customer. See Section 41.3, "Assigning Commission Information (ECS)."
To set up variable commission percentages within a group
On Related Salesperson
Complete the following fields:
Salesperson Number
Effective Date
Expiration Date
Basis
Line/Order
Related Percent
Field | Explanation |
---|---|
Basis - Related Salesperson | A code that designates whether the system calculates commissions using Invoice Amount or Gross Margin. |
Code - Line or Order | A code that indicates whether the system bases commissions on order totals (O) or line amounts (L). |
Percent - Related | The percent of the sale for which a related salesperson is responsible. A related salesperson is any salesperson in a designated (related) sales group. For a given group, the percent of the sale does not have to equal 100%. |
From Sales Order Management (G42), choose hidden selection 29
From System Setup (G4241), choose Commission/Royalty Setup
From Commission/Royalty Setup (G4223), choose Commission/Royalty Inquiry
From ECS Sales Order Management (G4910), choose hidden Selection 29
From ECS Sales Order Management Setup (G491041), choose Commission/Royalty Setup
From Commission/Royalty Setup (G4223), choose Commission/Royalty Inquiry
You can set up your commission information to reflect your company's sales environment. You can assign a maximum of two salespeople or two sales groups to each customer. After you enter an order and update customer sales, the system applies a calculated commission amount to the salesperson's address book number or the address book number of each salesperson in the sales group by populating the Sales Commission File (F42005).
After the sales update, you can review commission information to ensure your salespeople receive the correct amount. If necessary, you can modify existing information if you have proper security access.
To review commission information
On Commission/Royalty Inquiry.
Figure 41-5 Commission/Royalty Inquiry screen
Use the first processing option behind the inquiry program to select whether the commission is calculated by line 'L' or by order 'O'.
Complete one of the following fields:
Salesperson
Customer
Order Number
Item Number
Review the information in the following fields:
Order/Amount Margin
Line Amount/Margin
Salesperson
Commission Code Type
Commission Percent
Commission Amount
Press F4 for More Details and review the following fields:
Load Factor
Fixed Cost
Figure 41-6 Commission/Royalty Inquiry (Details) screen
To revise any information, complete the following field:
Password
Field | Explanation |
---|---|
Commission $ | The system computes this dollar amount as a potential commission liability. Based upon the sales amount at the order or line level, this amount might be the result of cost of sales, overhead load factor, minimum gross margin, and so forth. |
Comm % | The percentage of an order sales amount payable to the salesperson. |
Ld Fact | The Load Factor that the system uses as multiplier of product cost.
Form-specific information A fixed percentage that the system deducts from the sales invoice total (if the commission type is I) or from the gross margin (if the commission type is G). |
Fx Cost | The Fixed Cost dollar amount of processing overhead per order. This is also deducted from the invoice total (if the commission type is I) or from the gross margin (if the commission type is G). |
In this specific example, you see that salesman receive 8% commission on the sales order. This is because the group is assigned 40% in the Commission Royalty Information program (P42110), and the specific salesman is responsible for 20% of the sales of the group as assigned in the Related Salesperson program (P42100). Since there are not load factors, fixed costs or margin limits and there have been no overrides the basic calculation is the multiple of the two percentages. So the individual salesman receives 20% of the 40% which works out to 8% of the order amount.
Topic | Description |
---|---|
Sales Update | Most commission information is calculated and written to F42005 at Sales Update (P42800). However, the Commission Amount (COMA) is not written to F42005 at this time; it is updated at Commission/Royalty Inquiry (P42120). |
Preference Profiles | Commissions can default in from Customer Billing Instructions for the Ship To only, and are not item specific. With the Sales Commission Preference you can attach commission based on the Ship To or Sold To, and based on individual customers, customer groups, and items or item groups. |
Advanced Pricing Rebates | Advanced Pricing Rebates are also used as a substitute for Commissions in JD Edwards World. To learn more about this functionality, see Setting Up Rebate Adjustments the JD Edwards World Advanced Pricing Guide. |
Import/Export | This program supports Import/Export functionality. See JD Edwards World Technical Tools Guide for more information. |