Calculating Commissions

PeopleSoft provides you with the ability to calculate commission rates because the algorithms used to calculate commissions vary greatly, but leaves the computation of commission amounts to you. For example, the system informs you that a team member has earned a commission equivalent to 10 percent of a 1,000 USD shipment, but it does not calculate the actual amount–100 USD.

The system calculates commission rates on the Header Commissions page and the Schedule Commissions page.

Note: PeopleSoft Order Management does not calculate commission amounts; rather, it calculates commission rates by percentage. You can then calculate commission amounts in another application. For example, you could download commission rate information to a financial spreadsheet application and perform calculations there.

Calculating Commissions on Quotes

The critical difference between sales orders and quotes commissions is that the system does not consider quotes when calculating a team members total bookings and shipments to determine that team members commission schedule level for a calendar period.

This topic discusses how to calculate commissions.

Page Name	Definition Name	Usage
Header Commissions Page	ORDENT_HDR_COMM	View or modify commission information for a sales order at the header level.
Schedule Commissions Page	ORDENT_SCH_COMM1	View or modify commission information at the schedule level.
Update Order Commission Data Page	RUN_OMS5300	Establish request parameters to calculate commission schedule percentages and create the commission Structured Query Report.

Use the Header Commissions page (ORDENT_HDR_COMM) to view or modify commission information for a sales order at the header level.

Navigation:

Select Commissions from the Header Menu on the Order Entry Form page.

Field or Control	Description
Support Team Code	Displays the support team code, which appears by default from the General Miscellaneous Info (general miscellaneous information) page, associating the commission with the default team for orders by this customer. Note: You can maintain support team information for an order regardless of whether any support team members are eligible to receive commissions.
Commissions Level	Select the commission level, which appears by default from your selection on the Order Management Setup page. Values are: By Header: The Method field can only be Comm Pct (commission percentage). By Sched (by schedule): The Method field can be either Comm Pct or Pro-Rata.
Member	The system populates the member lines with members of the selected support team, thereby making those team members eligible to share this commission. You can change the default support team code or opt for no support team at all. You can also add or delete team members from the commission.
Priority	Appears by default from the Support Team Members page. Confirm that the person selected as the 001 priority member is actually a member that has been identified as a salesperson on the Team Member Types page. If not, then you might have the wrong salesperson referenced on PeopleSoft Billing and Receivables documents.
Member Type	Appears by default from the Member Commission page for the team member along with the Commissionable option. The default source can be either SCH (schedule), if the commission is based on a schedule, or MBR (member), if the commission is based on a flat rate.
Get Schedule % (get schedule percentage)	Applies to commission schedule percentages only.
Commission % (commission percentage)	Displays the commission percentage. Values are based on the Default Source field. If the default source is: MBR: Percentage changes by default from the selection on the Members Commission page for the team member. SCH: Percentage is updated after the Update Order Commissions Data process is run. The process determines the correct percentages from the commission schedule set up on the Member's Commission Schedule page, and populates the Comm Pct field with that value. SCH: when you are using the Pro-Rata method: Enter a portion of 100 percent for each team member who shares the commission for the product. The commission percentage for the product is established on the Product Definition - Options page. The total of the values entered for Comm Pct can be any amount from 0 to 100. The split between the commission points of the various team members must equal to 100 percent.

Note: Commissions are not calculated or paid on orders. The information is optional and is not currently used for any calculations.

Use the Schedule Commissions page (ORDENT_SCH_COMM1) to view or modify commission information at the schedule level.

Navigation:

Select Commissions from the Schedule Menu on the Shipment Schedules page.

Schedule commission information appears by default from the Header Commissions page. You can override the commission percent and commission rate calculation method settings here at the schedule level. You can also add or delete team members from the commission.

Use the Update Order Commission Data page (RUN_OMS5300) to establish request parameters to calculate commission schedule percentages and create the commission Structured Query Report.

Navigation:

Order Management > Quotes and Orders > Process Orders > Update Commission Information

The Update Order Commission Data process is the final step in commission rate calculation. The process:

Populates orders from electronic data interchange with commission information under these circumstances:
- The Support Team field on the order header is blank.
- The Commission Level field on the order header is blank, or the value in it matches the default commission level for the business unit.
Calculates commission rates for schedules by searching tables to determine what each team member has sold in the past and the team members' schedule levels.
The process then calculates the commission rate for the order under these circumstances:
- The order has a commission method of commission percentage.
- There are team members whose default source for commission percentage is commission schedules.
Generates the Update Order Commission Data report.

Update Options

Field or Control	Description
Default Commissions Data	Displays the default commissions data. The system populates commission for orders entered by EDI/XML. The system enters the default support team data for the ship to customer and commission information for each member of the team.
Schedule Percentage Commission	Displays the schedule percentage commission. The system calculates the team members total bookings or shipments for the period in which the order falls (defined by the Date From and Date To fields on the team members commission schedule), and calculates the commission rate. The process enters commission percentages for both sales orders and quotes, but quotes are not considered in calculating the total bookings or shipments for a team member.
Both	Populates commission data for orders entered by EDI/XML to calculate commission percentage for commission schedules.

Order Selection Option

Field or Control	Description
By Get Percent Flag	Uses commission lines when the Get Pct flag is selected on the Header Commissions page or the Schedule Commissions page. Note: If you select this option and you want the process to consider all orders, select Schedule Percentage Commission, not both, in the Update Options group box.
By Order Date Range	Uses all commission lines for orders within the specified date range for the team members whose commission percent source is SCH, and ignores the Get Pct flag value. Note: If you select this option, the system overrides any values entered in the percent field manually where a schedule is the default source, even if you have not selected the Get Pct flag.
From Date and Through Date	Enter the from date and the through date for the orders that you want the process to consider.

Bookings/Shipments Calculation Option

Field or Control	Description
Commissionable Lines Only	All sales order lines or only commissionable lines can be included when calculating the total bookings or shipments for a team member. This affects calculations when you are processing sales orders for commissions calculated at the header level. If the option is not selected, the process includes all of the lines on the sales order. When the option is selected, the process includes only those lines whose products are commissionable. When calculating commissions at the schedule level, only commissionable lines have commission records, so there are no non-commissionable lines for the system to consider. Note: If non-commissionable lines are included in the process, the system uses them only to determine which level of the commission schedule applies to order headers or schedules. Commission percentages are applied to headers and schedules that include commissionable products only.

Field or Control

Description

Commissionable Lines Only

All sales order lines or only commissionable lines can be included when calculating the total bookings or shipments for a team member. This affects calculations when you are processing sales orders for commissions calculated at the header level. If the option is not selected, the process includes all of the lines on the sales order. When the option is selected, the process includes only those lines whose products are commissionable. When calculating commissions at the schedule level, only commissionable lines have commission records, so there are no non-commissionable lines for the system to consider.

Note: If non-commissionable lines are included in the process, the system uses them only to determine which level of the commission schedule applies to order headers or schedules. Commission percentages are applied to headers and schedules that include commissionable products only.

Calculating Commissions