Sales Commission Management (Sales Order / Invoice / Payment)

Sales Commissions: Internal Users & External Agents | Sales Agent Commission Employees & External Contacts

Sales Agent Commission by Order, Invoice, Payment

Sales Commission System for Orders, Invoices and Payments

This module provides a comprehensive solution to manage sales commissions based on Sales Order confirmation, Customer Invoice validation, and Customer Payment validation. It supports assigning and calculating commissions for both internal users (employees) and external partners or sales agents. With flexible commission rules and multi stage tracking, it ensures accurate and automated commission processing throughout the sales cycle.

Main Features:

• This module allows your company to assign internal users and external partners or sales agents to receive commissions directly from the customer form. Commission percentages can be configured based on Sales Team, Product, or Product Category, depending on the option selected in the sales settings. This flexible setup ensures accurate, automated, and efficient commission tracking aligned with your sales strategy.
• This module provides flexible features to manage sales commissions with multiple configuration options. After installing the module, you can define your company’s commission policy by selecting how commissions should be calculated and distributed. Commissions can be assigned to various roles such as Salespersons, Sales Managers, Sales Agents, Branch Managers, and External Partners or Agents involved in the sales process. This allows for a customizable and scalable commission structure that aligns with your business strategy.
• This module enables you to define flexible sales commission policies by configuring both when the commission should be paid and how it should be calculated. Commissions can be triggered at key stages of the sales process such as on sales order confirmation, invoice validation, or customer payment receipt. For calculation, commission amounts can be based on the sales team, product category, or individual products. These options allow your company to implement accurate and automated commission tracking for internal sales users and external partners or agents, tailored to your specific sales strategy.
• For each Calculation Based On option, the module allows you to define commission percentages based on the user job position. The system is designed to work with a single configuration at a time meaning you must choose one option for When to Pay (e.g., Invoice Validation) and one for Calculation Based On (e.g., Product Category). Based on this selected configuration, the system will follow the defined workflow and automatically generate the appropriate sales commission entries.
• Important: When to Pay is set to Customer Payment, only Calculation Based On: Sales Team is supported. The other calculation methods Product and Product Category are not compatible with the Customer Payment option. This limitation ensures the commission logic remains accurate and aligned with system constraints.
• For down payments (both percentage based and fixed amount), you must configure the commission percentage directly on the down payment products. This setup ensures that sales commissions are correctly calculated and applied when generating down payment invoices.
• The main advantage of this app is the flexibility to modify commission percentages at the time of processing sales. While you can predefine commission percentages based on the Sales Team, Product, or Product Category, the module also allows you to manually adjust these percentages when creating a Sales Order or Invoice. This flexibility applies to both the Sales Team policy and line level settings you can open and edit the Sales Order Lines or Invoice Lines to update the commission percentage as needed, ensuring accurate and situation-specific commission tracking.
• For more information, please refer to the screenshots below and watch the demonstration video.

Navigational Menus:

• Sales
• Configuration
• Settings
• Commissions
• Commission Worksheets
• Sales Commissions Lines
• Invoices
• Configuration
• Settings
• Commissions
• Commission Worksheets
• Sales Commissions Lines

Sales Commission Process Flow:

Option1 :

Upon Sales Order Confirmation, the system checks whether a Sales Commission Worksheet exists for the current month. If not, it automatically creates one. For every confirmed sale within the month, the system appends corresponding sales commission lines to this worksheet. Throughout the month, as additional sales are confirmed, new lines are continuously added. At the end of the month, the Accountant can review the worksheet, and based on the recorded data, generate commission invoices to process and release commission payments to internal salespersons and external partners or agents.

Option2 :

When a Customer Invoice is validated, the system checks if a Sales Commission Worksheet exists for the current month. If not, it automatically creates one. For each invoice validated during the month, the system adds the corresponding sales commission lines to the worksheet. As more invoices are validated throughout the month, new commission lines are appended accordingly. At the end of the month, the Accountant can review the worksheet and generate commission invoices to release commission payments to internal salespersons and external partners or agents.

Option3 :

When a Customer Payment is registered, the system checks if a Sales Commission Worksheet exists for the current month. If none exists, it automatically creates one. For each customer payment received during the month, the system appends the corresponding sales commission lines to the worksheet. As additional payments are received, new commission lines are continuously added. At the end of the month, the Accountant can review the worksheet and generate commission invoices to process and release payments to internal salespersons and external partners or agents.

Commissions for sales users, other internal users, and external partners or agents are always calculated and recorded in the company base currency. This module fully supports multi currency transactions Sales Orders, Invoices, and Payments can be processed in various currencies. The system automatically handles currency conversions and ensures that all commission entries are accurately generated in the company currency. As a result, you dont need to worry about currency differences the module manages it seamlessly.

A default Sales Commission product is created automatically through initial data setup. However, you can still change the commission product manually on the Commission Worksheet before generating the commission invoice. This allows flexibility in choosing the appropriate product for invoicing commissions.

The commission amount is calculated based on the Net Revenue Model, which considers amounts excluding taxes. Please note that Gross Margin based commission calculations are not supported in this module.

Sales Commission: Initial Settings Overview

Sales Commission Level Setup

Configure and create all applicable commission levels that are eligible to receive commissions for your company sales transactions.

Set Commission Levels on Customer Form

You need to set up the Sales Commission Level for each customer. This configuration will be used when generating commission records. For example, when a sale is made to a customer like Jackson, the assigned users in the selected commission levels will receive commissions based on the percentage defined on the Sales Team, Product, or Product Category.

Commission Calculation Based On: Product Category

When Product Category is selected as the commission calculation basis, you are required to define commission percentages for each level. These values determine how commissions are allocated to internal users and external partners.

Commission Calculation Based On: Product

When Product is selected as the commission calculation method, you are required to define commission percentages for each level on the product. These values determine how commissions are distributed to users and external partners during sales.

Commission Calculation Based On: Sales Team

When Sales Team is chosen as the commission calculation method, you need to define commission percentages per level for the respective team. These values will determine how commissions are distributed to users and external partners involved in the sale.

Create Commission at Sales Confirmation

If When to Pay is set to Sales Confirmation, the sales commission will be generated upon confirming the sales order for the assigned users and external partners.

Sales Commission User Settings (Sales Confirmation Trigger)

Upon selecting a customer on the Quotation or Sales Order, the predefined commission levels for that customer will be automatically filled in. You are then required to input the corresponding internal users or external partners in this tab.

Sales Commission Percentage Settings (Sales Team Based, On Sales Confirmation)

Sales Commission Lines with Sales Confirmation Option

Sales Commission Configuration (Sales Confirmation, Based on Product)

Create Commission Entries When Validating Invoices

Commission User Settings: Invoice Validation

When Invoice Validation is selected as the payment trigger, commissions will be created upon invoice validation for the configured users and external partners.

Sales Commission Levels (Based on Sales Team, Triggered on Invoice Validation)

Sales Commission Lines (Created on Invoice Validation)

Sales Commission User Settings (On Customer Payment)

Sales Commission Lines (Triggered on Customer Payment)

Sales Commission Worksheet

The system will automatically generate a Sales Commission Worksheet each month for all sales users, external partners, and their respective commission levels. This worksheet will include all related sales commission lines, and it will serve as the basis for the accounts team to review and process commission payments.

The accounting department can use the Create Invoice button to release the payment and create the corresponding commission invoice.

Sales Commission Worksheet PDF Report

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