Commission on Estimated Gross Profit

You can pay commissions based on the estimated gross profit at the transaction line item level.

When you use estimated gross profit you can compensate sales people throughout the sales cycle.

On the revenue side, the gross profit calculation could use the expected revenue for an opportunity, estimate, sales order, cash sale, or invoice.
On the cost side, you could use a user-defined amount such as standard cost, average purchase cost, or most recent purchase cost. You could use the price charged by your preferred vendor, or price of the most recent purchase order your company issued to a vendor.

Important:

NetSuite flexibility lets you select revenue and cost values to calculate estimated gross profit that may not conform to Generally Accepted Accounting Principles (GAAP).

For information about how NetSuite calculates estimated gross profit, see Estimating Gross Profit.

To pay commission on estimated gross profit, you must use SuiteScript to populate the Alt. Sales (Alternate Sales Amount, ASA) field. This field appears on the Sales Order and Return Authorization forms. Use the following formula:

          Amount - Est Extended Cost = Gross Profit

For detailed instructions and an example of how to calculate commissions with Alternate Sales Amount, see Basing Commission on ASA.

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