activant prophet 21 - epicor · commissions in p21 commissions built by creating rules that apply...

Activant Prophet 21

Commissions: Setting up and Using

This class is designed for…

Sales managersIndividuals charged with establishing commissions

Objectives

Define uses for commissionsSet commission parametersEstablish commission rulesDefine commission schedulesAssociate salesreps with commissionsDefine Salesrep QuotasSet Commission Defaults Select commissions for paymentReview reporting related to commissions

This course will NOT cover…

Sales Order creationInvoice creationEstablishing Sales Pricing matrices

How do commissions work?

Create Salesreps

Assign reps to customers & ship to’s

Create invoices

Assign commission schedules and rules to reps

Generate commissions -based on invoice creation or cash receipt

Assign reps to orders

Where does the application find commissionable amounts?

System designationSetup/System Setup/System/System Settings/Order Processing/Cost Sources

Standard CostMoving Average CostOrder Cost

Customer levelEstablished in

Sales pricing pages in customer pricing matricesJob/Contract pricing

Commission cost indicated carries to invoicesUsed to calculate commission for salesreps based on commission rules and commission schedules

Commissions in P21

Commissions built by creating rules that apply to items or invoices and then grouping them into schedulesSetting Commission Rates using a specific subset of items or customer, sales location, and territory Split commissions between reps

At order levelAt order line level On commission schedule

Designate order takers for commissionsPay commissions by the type of saleOption to post commissions to the general ledger

System Settings

Setup/System Setup/System/System Settings/Order Processing/Cost Sources

System Settings

Setup/System Setup/System/System Settings/Order Processing/General

Company Maintenance

Setup/System Setup/System/Company Maintenance

Post Commission AccrualsCommission Expense AccountCommission Accrual Account

If not posting commissions, can still generate and print, but will not post to GL

Company Maintenance

Setup/System Setup/System/Company Maintenance

Limit Total Commission PercentagesBy default, system places no limit on the total commission percentages paid to salesrepsThis feature allows you to cap total commissions paid to 100%

Example: Order with 2 Salesreps

Primary salesrepCommission rule pays 10% of all profit dollars65% commission split on this order as per the rule assigned

Second salesrep50% commission split on the order as per the rule assigned

The order generates a profit of $250The system uses the rule for the primary salesrep to generate the commission, and arrives at $25.00 (250 X .10)The system then applies the commission split for the primary salesrep to the commission amount to generate the commission payment, which is $16.25 (25 X .65)It then repeats this process for the second salesrep using thoserules, generating a commission payment of $12.50 (25 X .50)Notice that the total commission paid on the order is $28.75 (16.25 + 12.50), which is greater than the total commission payment generated initially using the primary salesreps rule

Commission Splits

Circumventing Commission Total LimitsTool to credit salesreps with higher commission payments should the situation warrant it

User Maintenance

Setup/System Setup/System/User Maintenance

User Maintenance

Setup/System Setup/System/User Maintenance

Default Salesrep on OrderThis rep ID will automatically be placed on a sales order if this user is an Order Taker on the order

Default Salesrep in Commission ReportWhen enabled, this salesrep ID will appear as the default on the Commission Report and cannot be changed in the criteria options

Salesrep Commission HierarchySalesrep

Created in Orders/Order Processing/System/Salesrep MaintenanceAssigned to customers/ship toAssigned to orders and eventually invoices

Defaults from customer/ship to

Invoice reviewed for commissions to be paidSalesreps are assigned commission schedulesCommission schedules contain commission rulesCommission rules determine commission amounts


Salesrep Commission Maintenance

Commission Schedule Maintenance

Commission Rule MaintenanceDetermines:

How to calculate commissions based on gross sales, profit dollars or profit percentWhich parameters must be met to calculate a commissionWhich types of items are included in calculations – stock, nonstock or other charge




Assigns commission rules to commission schedulesDetermines:

How many commission rules apply to the scheduleHow to search commission rulesIf you apply commissions by line or by invoice



Associates a specific commission schedule to repDetermines:

If you pay on invoice creation or cash receiptIf partial payments are eligible for commissionsIf you track quotas or meet a profit threshold for commissions to generateIf you split commissions with the House

Commission Strategy

Determine the methods you use to pay commissions

Outline the general offeringsStructure commission grouping Determine if commissions are splitIdentify individual rep payment structures

Create Salesreps

Orders/Order Processing/System/Salesrep Maintenance

Customer Level Salesrep

Not required Commission split defined Defaults to each Ship To record created for this customer

Ship To Level Salesrep

Primary salesrep requiredDefaults from Customer Ship To Level SplitsDefaults to ordersMay be overridden by customer maintenance

Order Level Salesrep

Defaults from Ship ToApplies to entire transaction May be overridden

By orderBy line item

Order Line Level Salesrep

Must be enabled at system levelSalesrep tab at order line levelMust activate before rows appearApplies only to this line item

Establish Commission Rules

Accounting/Commissions/Maintenance/Commission Rule Maintenance

Entire Invoice

Line Item

Commission Rule Maintenance

Entire Invoice Both Line Item

Limit by: Customer IDSales LocationTerritory ID

Effective DatesApply to Manufacturer Rep OrdersApply to Service OrderInclude Manual InvoicesNew CustomerNew Item for CustomerCompute Negative Commissions for Credit Invoices

Group By – numerous rulesOrder Disposition Line Thresholds

Breaks Tab

Breaks Tab indicates commission calculations

Break Value

Break Value: Threshold to determine if a commission is calculatedInclusive – calculate up to an including the amount listed before you move to another break

Breaks Type

Break Type: Compute – calculate commission amountExact – determine exact commission earned

Value

Value: Variable for calculation, if set to ComputeAmount of commission, if set to Exact

Factor and Source

Factor and Source:When you compute amounts -

Factor – determines if you calculate a percentage of the source amount or multiply the value by the source amountSource – options of Sales dollars or Profit dollars

Rules – Line Item

All ItemsProduct Group IDSales Discount Group IDSupplier IDItem Commission ClassCustomer IDPrimary Supplier/Mfg ClassCustomer ID/Product GroupCustomer ID/Sales Discount GroupCustomer ID/Primary SupplierCustomer ID/Primary Supplier/Mfg ClassCustomer ID/Item Commission ClassCustomer ID/Item IDCustomer ID/Customer Part NumberFreight CodeSales Location IDTerritory IDItem IDNew CustomerNew Customer/Product GroupNew Customer/Item Commission ClassNew Customer/Item IDNew Customer/Primary Supplier IDNew Item For Customer

Assign Rules to Schedules

Accounting/Commissions/Maintenance/Commission Schedule Maintenance


Step 1: Enter a schedule ID and description


Step 2: Select a schedule type


First Of The system finds the first rule that pays commission depending on how the rule is defined

Highest Of The system finds the rule that pays the highest commission

Lowest Of The system finds the rule that pays the lowest commission

Sum Of The system totals all the rules that are eligible to pay commission.


NOTE: Schedule option must match the rule type


Inactive v. Delete

Establish Salesrep Commission Maintenance

Accounting/Commissions/Maintenance/Salesrep Commission Maintenance


Defined by Commission Defaults Maintenance

Salesrep Quota Maintenance

Accounting/Commissions/Maintenance/Salesrep Quota Maintenance


Step 1: Enter Salesrep ID

Step 2: Enter the fiscal year


Choose Annual, enter the annual quota amount


Select the quota type of PeriodClick on the Period Quotas tab


Enter quota per period


Select quarter and access the Quarter Quotas tab


Enter quota amounts for each quarter


Accounting/General Ledger/Maintenance/Fiscal Year Maintenance


Assign different schedules based on quota achieved

Copy Salesrep Quotas

Accounting/Commissions/Maintenance/Copy Salesrep Quotas


Step 1: Retrieve the rep you will use for the copy process

Step 2: Enter the Fiscal Year you will use as the source


Multiplier – applies a factor to the quotas

Increase by 5% - multiplier = 1.05Decrease by 5% - multiplier = .95


Copy To: Another Salesrep or Another Year

Parameters Governing Commission Calculations

Commission Defaults Maintenance


Commission Rule Maintenance

Default values for commission schedules and commission rules – some are editable, others are not

How to include invoices for commission calculations, thresholds, and if the rep splits commissions

Specific calculations for commissions


Accounting/Commissions/System Menu/Commissions Default Maintenance


Limitations on calculations – for Salesrep Commission Maintenance

Total Profit ThresholdDays Overdue Calculated FromDays Overdue/Percent Forfeiture


Impact on Commission Rule Maintenance


Accounting/Commissions/System Menu/Commissions Default Maintenance

Calculate Commissions

Accounting/Commissions/Transaction/Calculate Commissions


Two step processGenerate/review commissions – Calculate Commissions

Accounting Band/Commission Module / Transaction / Calculate CommissionsUse to edit/approve commissionsGL postings occur if flagged in your system when commissions are saved

Indicated commissions are viewable via Commission Report

Accounting Band/Commission Module / Reports / Salesrep Commission ReportCommission must be saved before they can be printed


Step 1: Enter ranges of salesreps and branches if necessary


Step 2: Select your time frame for generation


Step 3: Determine if you will base your commission calculations on Invoices or

Cash Receipts


Step 4: Select to include or exclude Manufacturer Rep Orders

Click File/Retrieve or the Retrieve icon to view eligible commissions


Step 5: Determine if you will include new items


RMB to modify the Save Commission checkbox


Displays rules that apply to the “Entire Invoice”


To save commissions, select File/Save or click on the save icon.Post to General Ledger?

Based on your company settings – Post Commission Accruals = Y, then posting will occur when calculations are Saved


To include edited commission amounts in your retrieval, select the checkbox labeled ‘Include Edited Commissions

Salesrep Commission Report

Accounting/Commissions/Report/Salesrep Commission Report


Branch IDSelect By

Year/PeriodDate

Based OnCash ReceiptsInvoice Generation

Include Manufacturer Rep OrdersShow

DetailShow Line/Rule InfoShow Forfeiture / Percentage Info

Summary

Commission Saved As Of


Summary mode


Detail mode

Summary

Define uses for commissionsSet commission parametersEstablish commission rulesDefine commission schedulesAssociate salesreps with commissionsSalesrep QuotasCommission Defaults Maintenance Select commissions for paymentReview reporting related to commissions

For More Information…

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activant prophet 21 - epicor · commissions in p21 commissions built by creating rules that apply...

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