Creating an Employee Commission Plan
Commission plans are made up of individual commission schedules. When you assign a commission plan to a sales rep, NetSuite applies all commission schedules to determine the commission earned by the sales rep.
For example, Wolfe Electronics creates a commission plan called Standard Quota Commission that includes the following commission schedules:
-
a commission schedule based on percentage of quota fulfilled
-
a commission schedule based on the number of service plans sold during the period
-
a commission schedule based on the number of sales to new customers
To create a commission plan:
-
Go to Lists > Commissions > Employee Plans > New (Administrator).
-
In the Name field, enter a name for this plan.
-
Enter a description of this plan.
-
On the Add Schedules to Plan subtab, select a schedule to include in this plan in the Schedule column.
-
Click Add.
-
Repeat these steps for each commission schedule you want to include in this plan.
-
Click the Assign Plan to Sales Rep subtab.
-
In the Sales Rep column, select the sales reps to assign to this plan.
-
In the From column, enter or pick the date this plan takes effect.
-
In the To column, enter or pick the last date you want this plan to generate commission.
Important:Best practise is a plan should not have an end date more than 18 months from the start date of the plan.
-
Click Add.
-
Repeat these steps for each sales rep you want to assign to this plan.
Important:For optimal performance, you should not exceed 50 employees on an employee commission plan.
-
Click Save.
You can change the plan and the commission schedules included on the plan at any time. When you make changes to a commission plan, NetSuite recalculates commission based on the updated plan. See Recalculating Commission.
If you pay commissions using SuitePeople U.S. Payroll, you must add a commission earning item to each sales reps' employee record. See Setting Up an Employee for Commission Payments.