Understanding Commission Constants
You use commission constants to define the information that the system uses, in addition to employee-specific commission information, to calculate commission amounts. 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 against 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 earn five percent commission on a standard sales order, two percent on a direct ship order, and seven percent on a blanket order.
You can also designate commission percentages for a limited period with variables that apply during the effective dates. For example, you can specify that a sales trainee earns a seven percent 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 five percent commission on the gross margin of all orders after the system deducts the fixed costs. You can enter multiple commission percentages when you anticipate changes in the future.
As an alternative to entering a commission percentage, you can enter a commission amount for an invoice, cost, or gross amount.
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.
After you have set up a commission constant, you cannot delete it. However, you can change the expiration date.
You must use the Sales Order Constants program (P42460) to set up the Sold To Ship To Default. This determines whether the salesperson receives a commission based on whether the customer number is in the Sold To field, the Ship To field, or both fields on the order entry form.