Authorizing Employee Commission in Bulk
After you assign a commission plan to an employee, NetSuite generates a commission amount when a sales transaction is created that meets the commission criteria. After NetSuite generates a commission amount, it must be authorized by a supervisor.
Authorization verifies the commission amount, creates a commission payable transaction, and may also give accounting approval to cut a payment check.
Bulk employee commission transactions source department, class, and location from employee records.
To authorize bulk commission transactions:
-
Go to Transactions > Commissions > Authorize Employee Commissions (Administrator).
The Authorize Commissions page displays a list of commission transactions pending authorization.
Sales managers see only commissions for their subordinate sales reps.
-
In the Pay Commissions Using field, select whether you want to pay commission through payroll or through accounts payable.
NetSuite inserts today's date for this commission, but you can enter or pick another date.
The date you enter determines the range in which this transaction appears on the Accounts Payable Register.
-
Select the period to which you want these commission transactions to post.
-
Check the Accounting Approval box to give accounting approval for these commission transactions.
Commission transactions with accounting approval can be paid through checks.
-
In the Account field, select the account to which you want these commission transactions to post.
This field appears only if you are paying the commission through accounts payable.
The balance for this account is shown in the Balance field.
-
Select the expense account used by these commission transactions.
This field appears only if you are paying the commission through accounts payable.
-
In the Date Eligible field, enter a date to filter commission transactions by the date they became eligible.
You can use this date filter to show only the transactions for the month you authorize commission.
This date defaults to the most recent date for eligible transactions.
For example, if you have a commission eligibility period of 15 days and today's date is February 28, the Date Eligible field defaults to February 13. Only transactions that are eligible on the date you are authorize commission are shown.
-
In the Sales Rep field, enter the name of a sales rep to filter the commission transactions for the particular rep.
-
In the Select column, check the box next to one or more commission amounts to authorize, or click Mark All.
-
Check the Accounting Approval box (if available) to approve and authorize commissions at the same time.
-
Click Authorize.
The Process Status page displays the status of the commission authorization process while the process runs. Information that displays includes any transaction number, process type, the status of the commission payment, and percent complete. It also displays any processing error, date created, and the name of the creator. If the status is Complete, click the link to open the Processed Commissions page. On this page you can obtain the name of the employee receiving the commission, status, and transaction number. You can also obtain currency, amount in foreign currency, amount in base currency, and any error message. If you click the Transaction Number link, you can access the individual commission record.
You cannot authorize commissions for employees whose commissions are currently being authorized.
The next step depends upon your set preference to use accounting approval for commissions and to pay commissions. You can require separate accounting approval. You can choose either to pay commissions to employees on their paychecks, or pay commissions on a separate check.
Sales managers with accounting approval permissions can both authorize and approve a commission transaction at the same time.
After you authorize a commission transaction, one of the following occurs:
-
With Accounting Approval and Use Payroll both off – The commission appears as a payable transaction at Transactions > Pay Bills.
-
With Accounting Approval and Use Payroll both on – The commission appears in the accounting approval queue.
-
With Accounting Approval on and Use Payroll off – The commission appears in the accounting approval queue.
-
With Accounting Approval off and Use Payroll on – The commission appears as a payment on the employee's paycheck at Transactions > Process Payroll.
To set your preference to require separate accounting approval on commissions, go to Setup > Sales > Sales Management > Commissions (Administrator). On the General subtab, check the Require Accounting Approval box, and then click Save.
-
To pay commissions on paychecks, you must use SuitePeople U.S. Payroll. For more information, see SuitePeople U.S. Payroll.
Next, go to Setup > Payroll > Setup Tasks > Set Up Payroll (Administrator). On the Preferences subtab, check the Pay Commissions on Paychecks by Default box. Click Save.
-
If you do not pay commissions on paychecks, approved commission amounts generate a commission payable transaction. Go to Transactions > Payables > Pay Bills (Administrator).