Commissions are based on the rate setup in the Salesperson/Technician File (Task 20 in the Order Processing module). However that rate is overridden by the information in the Commission Maintenance File (Task 24 in the Order Processing module). Note: in the Customer Contract Item File (Task 21 in O/E) there is a field for commissions, but it is not functional at this time.

NOTE: There is NO automatic interface between commission reports and payroll. To enter the commission in the payroll module, gather the information through the appropriate commission report in O/E and A/R and input the information directly into the payroll module.

SALESPERSON/TECHNICIAN FILE

Order Processing (Module 6)
- Salesperson/Technician file (Task 20)
  - Enter New Salesperson Record (Task 1)
    - Field 1: - Salesperson #:____(4) Up to 4 number characters
    - Field 2: - Name: __________(25) Up to 25 characters
    - Fields 3 through 15 are optional
    - Field 16: Commission %: ____(4) 4 characters. Type in 200 for 2%, or 1000 for 10%
    - Fields 17 through 21 are optional

Note: There is a parameter which states if the Salesperson Master commission percentage (found in 6/20/ field 16) should be used when posting to the Item History if no applicable Commission Master rate (from Task 24) can be found.

Order Processing (Module 6)
- System Management Functions (Task 32)
  - Modify Parameter Files (Subtask 22)
    - Posting & Label Options (Selection 4). Look for the parameter: POST'DFLT'SLP'COM=Y The default is No, to use the Salesperson/Technician file commission % set parameter to Y

Additional Note: A parameter needs to be set as the default commission calculation basis (Profit or Revenue). When using the commission % in both the Salesperson/Technician file and the Commission Maintenance this parameter is used as the default for the basis, P=Profit or R=Revenue.

Order Processing (Module 6)
- System Management Functions (Task 32)
  - Modify Parameter Files (Subtask 22)
    - Posting & Label Options (Selection 4) Look for the parameter: DFLT'COM'BASIS= P P=Profit (it is the default) and R=Revenue (sales amount)

COMMISSION MAINTENANCE

Commission Maintenance provides the means to override certain information being posted to the Item History File and affects commission and sales reporting. Go to:

Order Processing (Module 6)
- Commission Maintenance File (Task 24)
  - Add New Commission Record (Sub-task 1)
    - Field 1 - Cust/Ship-to: Enter the customer number or combination of customer number and 'alternate ship-to' number. All zeros and all nines can also be entered. See below for clarification.
    - Field 2 – Item Key: Enter the specific item number, a Report Class or a Product Code. Note: if Report Classes or Product Codes are used, discounting will be skipped for Inventory Items that are marked 'Yes' for Net Pricing (Field 28 on the Item Master File - Task 17)
    - Field 3 - Salesperson #: Enter the number of the salesperson, or leave blank for all salespersons
    - Field 4 - Item Cost %: Sets the cost used for history. Cost can be a percent of the sale price for an item which has a cost of $0. Note: this field is automatically skipped when entering a new record, use the "up" arrow key to access the field.
    - Field 5 - Item Cost $: Sets the cost used for history. Cost can be a specific dollar amount for an item which has a cost of $0.
    - Field 6 - Commission %: Commission percent to be paid
    - Field 7 - Calc Base: The base for commission calculations.
      - R = Retail
      - P = Profit
    - Field 8 – Exp Date: Expiration date, leave blank for no expiration

Clarify All 0's and All 9's:

If all zero's are in the customer/alternate ship-to field this means that anytime the salesman assigned to the order (located on the front screen of a sales order) is the same salesman assigned in the Commission Maintenance file and the specified item (or group of items in a specified Report Class or Product Code) is sold, regardless of the salesman assigned to the customer (on the Customer Master), the salesman assigned to the order will get the commission.

Whereas if all 9's are in the customer/alternate ship-to field, this means that regardless of the salesman assigned to the customer or order, any time the specified item (or group of items) is sold, the specified salesman in the Commission Maintenance file will get the commission.

How it Works:

As each item is posted from the Order Processing Invoiced Order Holding File (Task 2 in module 6), commission records are searched based on a specific hierarchy. The system searches in this order:

Specific Customer, specific Ship-to, Item #
Specific Customer, Ship-to with 00000, Item #
Specific Customer, Ship-to, Report Class
Specific Customer, Ship-to with 00000, Report Class
Specific Customer, Ship-to, Product Code
Specific Customer, Ship-to with 00000, Product Code
Salesperson #, Customer & Ship-to with all 0's (meaning all customers/ all ship-tos), Item #
Salesperson #, Customer & Ship-to with all 0's, Report Class
Salesperson #, Customer & Ship-to with all 0's, Product Code
Customer & Ship-to with all 9's (meaning all customers), Item#
Customer & Ship-to with all 9's (meaning all customers), Report Class
Customer & Ship-to with all 9's (meaning all customers), Product Codes

Note: #7, 8 & 9 will use the salesperson # from the first screen of order entry. Therefore, if the system parameter is set to allow the salesperson # to be changed on the first screen of a sales order, that salesperson will be used -- not the salesperson who is set up on the Customer Master record or in Commission Maintenance.

If the system finds a match, it can change how the following fields are set in the Item History (Task 18 in O/E module):

Salesperson # (if found by options 1 thru 6, and 10 thru 12 from above)
Calculates a cost - either a percent or a dollar amount (only if the item cost is $0)
Calculates the commission on Profit (P) or Retail (R)
The commission percent

Note: The commission percent affects only the Item History reports after everything is posted. It has no effect on Accounts Receivable

Reports:

There are three basic areas of reports that may be affected by the Commission Maintenance and the Salesperson/Technician file activity.

1. Commission reports that use the Commission Percent and Calculation Base. They are:

Order Processing (Module 6)
- Salesman History (Task 13)
  - Commission - Salesman/Date/Customer (Commission Maintenance): COMSTH
  - Commission - Salesman/Class/Item (Commission Maintenance): IHSSCI
  - Commission – Salesperson / customer code-class (Comm maint) COMSCC
  - Commission – Salesperson / customer / class (Comm/Slp maint) COMRCX

2. All Item History reports that use Salesmen numbers as an option

3. Cost shown on Item History reports.

SLIDING SCALE COMMISSIONS:

To set up a Sliding Scale Commission, go to:

Order Processing (Module 6)
- System Management Functions (Task 32)
  - Modify Application Tables (Sub-task 17)
    - Profit Commission Scale (Option 13)

The first set of numbers represent the breakpoint of profit margin, the second set represents the percentage to be paid to the salesman. For example:

"00" , "05.00"

"35" , "08.50"

"45" , "10.00"

etc.

Explanation: for sales with a profit margin of zero to 34, the salesperson will get a 5% commission; for sales with a profit margin of 35 to 44 the commission rate is 8.5%, etc. The report using this table is found in Salesman History (Task 13 in O/E), Commission - Salesman/Customer/Code or Class (% Scale) COMRPI

NOTE: The weekly/monthly sales data is available in the Sales history reports until the sales information is purged. There is no separate file where the commission data is stored due to the complexity and varying ways commissions can be handled. To analyze the weekly/monthly, paid/unpaid invoices use an Aged Trial Balance. Go to:

Accounts Receivable (Module 2)
- Aged Trial Balance (Task 9)
  - Aged Trial Balance by Salesmen (Sub-task 5)

COMMISSION % BY ITEM PREFIX:

A table can be setup to assign Salesperson commission percentages based on the prefix for the item. Go to:

Order Processing (Module 6)
- System Management Functions (Task 32)
  - Modify Application Tables (Sub-task 17)
    - Salesmen Commission Rates - PFX % (Option 10)

"100" , "08.00" Indicates salesman who sells items with a prefix of 100 will receive 8% commission

"101" , "08.00" Indicates salesman who sells items with a prefix of 101 will receive 8% commission

"105" , "15.50" Indicates salesman who sells items with a prefix of 105 will receive 15.5% commission

etc.

Report:

Order Processing (Module 6)
- Salesman History Report (Task 13)
  - Commission - Salesperson/Date/Customer (Item Prefix) IHSCOM
  - Commission – Slsp (or admin) / customer / item (Item prefix) IHSACI

COMMISSION BY FLAT or HOURLY RATE BASED ON ITEM PREFIX:

A table can be setup to assign Salesperson commission as a flat or hourly rate based on the prefix of the item. Go to:

Order Processing (Module 6)
- System Management Functions (Task 32)
  - Modify Application Tables (Sub-task 17)
    - Sales Commission Rates - PRX Flat & Hourly (Option 9)

"100" , "002.75 F" Indicates salesman who sells items with a prefix of 100 will get a Flat rate of $2.75

"700" , "003.00 F" Indicates salesman who sells items with a prefix of 700 will get a Flat rate of $3.00

"716" , "003.00 H" Indicates salesman who sells items with a prefix of 716 will receive $3.00 for each Hour spent.

This table is good to use with items that are labor or otherwise have no tangible physical quantity involved. To use this method of commission calculations, contact us.

DONE BY #:

The "Done By #" is used to record who performs the labor associated with a specific line item. The "Done By #" can be entered manually or by default. The default settings allow the "Done By" options to be set in situations when internal control of Order Entry documents and/or ease of data retrieval are desired. To set the default to a specified salesperson number or item, to go:

Order Processing (Module 2)
- System Management Functions (Task 32)
  - Modify Parameter Files (Sub-task 22)
    - O/E General (Option 1)
      - Look for the parameter: ASK'ALL'DONE'BY= Select the options that best suit the needs of your company. The parameter can have up to three characters, indicating how the system will react.
        
        The five options for the first character are:
        
        Y = sets default to include "done by #" for all items only during Order Entry.
        
        N = sets default to include "done by #" for labor items only during Order Entry
        
        V = sets default to not ask for a "done by #" at all
        
        L = sets default to ask for "Done by #" for labor items at the time of Invoicing
        
        A = sets default to ask for "done by #" for all items at the time of Invoicing
        
        The option for the second character (if desired) is:
        
        0 = sets default to "0" (zero) when asking for the first "done by #" on an order and at the time of invoicing do not change the "done by #" if it's already set.
        
        Blank (or anything other than 0) will default to the salesman number.
        
        The options for the third character (if desired) are:
        
        I = asks for "done by #" at the time of invoice for each item
        
        Blank (or anything other than I) asks for "done by #" for all items on an invoice

Report

Order Processing (Module 6)
- Salesman history (Task 13)
  - Commission - Salesperson / Customer / Invoice # COMDON
  - Commission - Salesperson / Invoice # COMDOI

SALESMAN # & TELLER CODE #:

The salesman number on the first screen of a sales order in Order Processing can be set to a default or be manually entered.

The teller code number is used to denote the employee who collected payment (cash, check or credit card) for an invoice.

REPORTS:

There are a number of reports using commissions, however the reports pull their information from different sources. Please review, carefully, the reports and where the reports get their information. All reports are in Salesman History (Task 13 in Order Processing)

Commission - Salesperson / Date / Customer (Item Prefix) IHSCOM
- This report uses the percentage in the Commission PFX % (Table set up in 6/32/17/10)
Commission - Salesperson / Date / Customer (Commission Maint) COMSTH
- This report uses the sales information from the Item History file (Module 6, Task 18). The commissions on this report were calculated at the time of posting the Invoiced Order Holding file (Module 6, Task 2, Subtask 5), using the Commission Maintenance (Module 6, Task 24) and the Salesperson/Technician file (Module 6, Task 20).
Commission - Salesperson / Class/ Item (Commission Maint) IHSSCI
- This report uses the sales information from the Item History file (Module 6, Task 18). The commissions on this report were calculated at the time of posting the Invoiced Order Holding file (Module 6, Task 2, Subtask 5) using the Commission Maintenance (Module 6, Task 24) and the Salesperson/Technician file (Module 6, Task 20). This report shows all commissions paid YTD and current commissions paid.
Commission - Salesperson / Customer / Invoice # COMDON
- This report uses the commission percentage pulled from Salesperson/Technician File (Task 20 in O/E) using the "Done By #" for each line item.
Commission - Salesperson / Invoice # COMDOI
- This report uses the commission percentage pulled from Salesperson/Technician File (Task 20 in O/E) using the "Done By #" for each line item.
Commission - Salesperson /Customer /Code or Class (%Scale) COMRPI
- This report calculates commission using the Profit commission Scale table (Table set up in 6/32/17/13)
Commission – Salesperson / Customer Code-Class (Comm maint) COMSCC
- This report uses sales information from the Item History file (Module 6, Task 18). The commission dollars are based on net Sales or gross profit and a commission percentage as specified by the O/E Commission Maintenance (Module 6, Task 24) or Salesperson/Technician file (Module 6, Task 20) at the time the invoices were posted (Module 6, Task 2, Subtask 5).
Commission – Slsp (or admin) / Customer / Item (Item prefix) IHSACI
- This report uses sales information from the Item History file (Module 6, Task 18). The commission % & calculation comes from the table Commission PFX % (Table set up in 6/32/17/10)
Commission – Salesperson / Customer / Class (Comm/Slp maint) COMRCX
- This prints a commission report from the Item History file (Module 6, Task 18). The commission percent will be pulled from the Commission Maintenance file (Module 6, Task 24) using report class/product code. If not found in Commission Maintenance file then it will default to the commission % in the Salesperson master file (Module 6, Task 20). *These are from the CURRENT commission & salesperson configurations, NOT at the time of posting.

The following reports are found in Salesman History (Task 13 in order processing). They are all give sales $ by salesperson. They do NOT have commission $ or %:

Salesperson – Customer / Date IHSSCD
- This report takes the information from the Item History file. It will show the end of month discount from the contract records offered on A/R statements. This report doesn’t show commission $ or %.
Salesperson – Customer / Date OHSSCD
- This report uses the information from the Order History file. It doesn’t show commission $ or %. It does have a count of the # of invoices.
Salesperson – Customer / Code or Class (2 dates) IHSSCC
- This report uses the information from the Item History file. It doesn’t show commission $ or %. It is used to compare any two periods simultaneously, i.e. MTD/YTD or 2 quarters,….
Salesperson – Code or Class / Date IHSSRD
- This report uses the information from the Item History file. It doesn’t show commission $ or %.
Salesperson – Date / Customer IHSSDC
- This report uses the information from the Item History file. It doesn’t show commission $ or %.
Salesperson – Date OHSSLM
- This report uses the information from the Order History file. It doesn’t show commission $ or %. It uses the salesperson on the order. It prints two years of sales per salesperson by month in “this year vs. Last year” format.
Salesperson – Customer / Invoice (grouped report classes) CLSGRP
- This report uses the information from the Item History file. It doesn’t show commission $ or %.
Order History Analysis – Salesperson / Customer / Date OHSANA
- This report uses the information from the Order History file. It doesn’t show commission $ or %. One use for this is to evaluate the impact of implementing or modifying minimum order amounts.
Month-to-date Sales by Salesperson or Open-by / Customer OHSMTD
- This report uses the information from the Order History file. It doesn’t show commission $ or %. Using both “entry date” and “inactivity window” together represents “New business”. i.e. EITHER condition.
Sales Trend Report by Customer / Class / salesperson CUCTRN
- This report uses the information from the Item History file. It doesn’t show commission $ or %.