Sales Rep Commission
System Configuration> General> Sales Rep Commission
Sales Rep Commissions are financial incentives that companies offer to their sales representatives based on the sales performance of the individual. Commissions are a common and effective way to motivate sales reps to achieve specific targets and contribute to the company's revenue goals.
The structure of sales commissions can vary widely and this is why it is important for both the company and the sales reps to have a clear understanding of how the commission plan works. This is why it is crucial to set sales rep commission.
Only Commission Groups are displayed for selection in the various drop downs throughout the program .e.g. Debtor Setup - Commission, Quotes, Sales Orders etc
| Sales Rep Target | Sales Rep Targets are set up for key performance indicators |
| Sales Rep Entity | Shows the rep entities |
| Commission Group | Shows commission groups |
Sales Rep Target set-up video 2016 - Click here
Sales Rep Target
Sales rep targets, also known as sales targets or quotas, are specific, measurable goals set for sales representatives to achieve within a defined period.
| Target Year | Add Target year |
| Target Name | Add target name |
| Date From | Enter start date |
| Date To | Enter end date |
| Target Amount | Enter target amount |
Sales Rep. Entity Tab
Each Sales Rep employed by the company or any entity that could earn commission as a result of sales must be created under sales Rep Entity
| Description | The sales rep’s name or the entity that would be executing the sales |
| Active | When the tick box has been ticked, the Sales Rep Code will appear on all Sales Rep drop down selections. If not ticked the Sale Rep Code will not be displayed |
| Entity Type | Select entity type on the drop down |
| Entity Calculation | Will the entity receive commission on a Sales Range or Sales Band, e.g. Range / Band |
Sales Rep Entity Values
This is where you set up commission values and percentage
| Percentage | Add a percentage that a sales rep will receive if they reach their target amount |
| Amount From | Add the start amount that a sales rep should reach before earning a commission |
| Amount To | Add a to amount for sales rep commission |
Commission Group Tab
The Commission Group set consists of setting up either a Sales Rep as a group or creating a group that will receive a commission for sales.
| Code | The code can be either a sales rep name or a name, code or word to identify a group that will be receiving commission |
| Description | Description of the name, code or word used in the Code. |
| Point Value | |
| Active | When the tick box has been ticked, the Sales Rep Code will appear on all Sales Rep drop down selections. If not ticked the Sale Rep Code will not be displayed |
| Grid | This indicates the target allocated to a sales rep |
Entity Calculations Explained
Select the Sales Rep. Entity from the dropdown options. The Sales Rep. Type and Calculation are available in the dropdown from the previous setup under Sales Rep. Entity.
Commission group
| Percentage | Code | Type | Calculation |
| 50 | James | Turnover | Range |
| 50 | Philip | Turnover | Range |
Turnover and Range
First Calculation: (Sales Rep entity)
Sales Rep, “James”, Sales Turnover 80,000.00 at 15% result Total Commission 12,000.00.
Second Calculation (Commission Group)
“James” receives 100% of the commission calculated in First Calculation, based on the “James” Commission Group result 12,000.00
“James” receives 50% of commission calculated in First Calculation, based on “James and Philip” Commission Group result 6,000.00
Turnover and Bands
First Calculation: (Sales Rep entity)
Sales Rep, “James”, Sales Turnover 80,000.00.
e.g. Bands
5% up to 25,000.00 = 1,250.00
10% up to 50,000.00 = 5,000.00
15% up to 75,000.00 = 9,000.00
15% up to 80,000.00 = 750.00
Total Commission 16,000.00
Second Calculation (Commission Group)
“James” receives 100% of the commission calculated in First Calculation, based on the “James” Commission Group result 16,000.00
“James” receives 50% of commission calculated in First Calculation, based on “James and Philip” Commission Group result 8,000.00
Profit and Range
This calculation is based on deducting Cost of Sales from the Turnover (Total Invoiced amount) e.g.
Sales Rep, “James”, Sales Turnover R80,000.00.
| Turnover | 80,000.00 |
| Cost of Sales | 65,000.00 |
| Profit | 15,000.00 |
First Calculation: (Sales Rep entity)
Sales Rep, “James”, Sales Turnover 15,000.00 at 15% result 2,250.00.
Second Calculation (Commission Group)
“James” receives 100% of the commission calculated in First Calculation., based on the “James” Commission Group result 2,250.00
“James” receives 50% of commission calculated in First Calculation. Based on “James and Philip” Commission Group result 1,125.00
Profit and Bands
Sales Rep, “James”, Sales Turnover 80,000.00.
| Turnover | 80,000.00 |
| Cost of Sales | 65,000.00 |
| Profit | 15,000.00 |
5% up to 15,000.00 = 750.00
Total Commission 750.00
Second Calculation (Commission Group)
“James” receives 100% of the commission calculated in First Calculation., based on the “James” Commission Group result 750.00
“James” receives 50% of commission calculated in First Calculation. Based on “James and Philip” Commission Group result 375.00
No Comments