Understanding Commission Assignments
To define commission information in the JD Edwards EnterpriseOne Sales Order Management system, you must associate one or more salespersons or sales groups a commission percentage, a customer, and an order type.
You set up commission percentages according to the 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. If you assign one or more sales groups 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. However, when you assign a fixed commission percentage in the customer billing instructions for a group, the system distributes the commission amount to the group number. You can use this option if you distribute commissions to an entity, such as a branch office. The system does not automatically divide the fixed commission percentage between the salespeople within the group.
You can also set a fixed 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 can have a higher rate of commission than a sales assistant.
When you assign a fixed commission percentage on the customer master record, the system calculates the commission amount based on the order total. You cannot assign commission percentages for a salesperson on the customer master record to calculate variable commission percentages or set up additional commission information. To distribute the same commission percentage to the salespeople within a group, you must specify the commission percentage for each salesperson.
When you 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 can have a different commission percentage for sales orders than you have for blanket orders. Or you might deduct fixed costs from an order before you calculate commissions.