This article explains how sales commissions are registered and calculated. You can run this procedure in demo data company USMF or on your own data. This blog is devided in two parts, 

A. Configuration (Setting up sales commission)

I. Commission customers group – 

The commission customer group can be used to Isolate/unite customers who should be included in the commission calculation or omitted. This form will help customers that their salespeople can receive a commission on. 

Navigate to Sales and marketing > Commissions > Customer groups for commission - 

II. Commission customers group – 

The commission customer group can be used to Isolate/unite customers who should be included in the commission calculation or omitted. This form will help customers that their salespeople can receive a commission on. 

Navigate to Sales and marketing > Commissions > Customer groups for commission - 

III. Commission posting –

Commission fees are payable to the employees and must therefore be set up to ensure correct financial posting to the appropriate accounts in the General Ledger. This is done in the Commission posting page. Typically, the commission amounts are posted to a dedicated expense account and are offset to a dedicated payable account. If there's commission posting rules setup, the system will fail to complete invoicing of sales order which has eligible

commissions.

a. Commission account -

b. Commission offset account -

IV. Commission sales group - 

The sales groups are used in the commission calculation to determine which group of sales representatives the commission should go to.

Navigate to Sales and marketing > Commissions > Sales groups

In this case there are two commission groups have been setup,

- 100 % - 100 % sales commission goes to one sales rep

- 25%/75% - sales commission is devided into two sales rep, one sales rep will get 25 % and other sales rep will get 75%.

a. 100% sales commission setup

i. Sales rep

ii. Commission calculation

Click on commission calculation button on sales group to setup sales commission details, In this case I am selecting Customer group ‘All’ to calculate sales commission based on Revenue before line discounts. The commission percentage in this case is 10% and this commission will be valid period ‘from’ to ‘to’. 

b. 25%/75% sales commission setup -

a sales rep

b. Commission calculation

V. Item setup - 

a. Item number '1000' is set with 100% commission group as shown below,

b. Item number 'D0001' is set with 25%/75% commission group as shown below,

VI. Customer master setup - 

B. Processing (calculating sales commission) -

I. Create sales order - 

On sales order header verify commission group defaulted as shown below,

On sales lines verify sales order lines have sales group defaulted as shown below,

Line 1 - 

Line 2 - 

II. Invoice sales order, go to invoice tab and click on invoice button under journal section,

Click on Commission transaction under details section,

Commission transaction can be viewed here,

Commission transaction can also be viewed from employee master,

Click on commission transaction to view commission transaction calculated for sales rep,

Click on voucher on invoice tab,