Enabling & Choosing Commission Agent Type:
By default Commission Agent is Disabled. You can enable it from Settings -> Business Settings -> Sales -> Sales Commission Agent.
You will see 3 different types:
- Logged in User: If this option is selected then the Logged in User will be automatically considered as the commission agent for the sales added by him. Meaning the user adding the sales will get the commission for the sales.
- Select from User’s List: If this option is enabled then in POS & Sales Screen you will see the list of “users” present in your business. The user adding the sales will select the commission agent from the list of users displayed.
- Select from Commission Agent List: If this option is enabled then in POS & Sales Screen you will see the list of “Sales Commission Agents” present in your business. The user adding the sales will select the commission agent from the list of “Sales Commission Agents” displayed.
Adding Commission Percentage:
You can add commission percentage % while adding/editing the User or Sales Commission Agent
Commission Calculation Type:
The commission for a user can be calculated based on two methods
1. Invoice value: With this method, commissions are calculated based on the total invoice amount generated by the agent.
For instance, if an agent’s monthly invoice amount totals Rm500 and the commission percentage is set at 10%, the user will receive Rm50 as commission.
2. Payment Received: Alternatively, commissions can be calculated based on the actual payments received.
For instance: if the agent’s monthly invoice amount is Rm5000 with a 10% commission rate, but only Rm2000 is received within the month, the user will receive Rm200 as commission. If the remaining Rm3000 is received in the following month, the user will receive an additional Rm300 as commission.
Calculating Commission Amount:
To See the commission amount, Go to Reports -> Sales Representative Report.
From filters select the User for which you want to see the commission amount.
On selecting it will show you the detailed summary of Total Sale, Total Sale Commission & Total Expense. Also, the table below lists all the transactions.
NOTE: Sales commission is calculated without shipping or tax. Sales commissions are from the sales of the items, not the overhead cost such as taxes, freight, shipping, handling, etc.
Commission payment:
After getting the commission amount, System have 2 ways to make payment for the commission.
Using expense
- Calculate the commission from the sales representative report and after paying the amount add it as an expense in Add Expense menu.
Using HRM module
- For those using the HRM module, when creating payroll for a user, it will automatically include the sales commission.
- Sales commission will be shown as Pay-Components so that the business owner and the user both know details of the commission.