Commission Configuration and Calculation

Commission configuration involves defining commission periods, creating salesperson accounts, assigning salespersons to customers, and choosing general commission calculation options. You use the Salespersons (AR205000) form to set up individual salespersons' accounts. The Salesperson ID is the unique identifier of the salesperson. You should develop naming conventions for this identifier and use the SALESPERSON segmented key to define these requirements. For more information, see Segmented Identifiers.

By using the Salespersons form, you also assign a default commission percentage to each salesperson. At the bottom of the form, add a list of customers the salesperson works with and the commission percentages specific for customers if different from the default rate. (On a particular invoice, the salesperson's rate for the customer may be overridden.)

Generally, commission is calculated once in a commission period, just before the period is closed. In MYOB Acumatica, you set the commission period for all salespeople on the General tab (Salesperson Commission Settings section) of the Accounts Receivable Preferences (AR101000) form, with the following options available: By Financial Period, Monthly, Quarterly, and Yearly.

Note:

A document is assigned to the earliest open commission period unless its date is later than the period end. Thus, if the document with the date matching the closed commission period appears in the system, the commission for it will be prepared in the currently open period.

Some businesses pay commissions calculated on invoice amounts, while other businesses pay commissions only after customer payments are received. In MYOB Acumatica, you can select the option that fits your company policy on the Accounts Receivable Preferences form, in the Salesperson Commission By box. The following options of commission calculation are available:

Invoice: Commission is calculated on the invoice amount when the invoice is released.
Payment: Commission is calculated for each full or partial payment made for the invoice. The commission base equals the paid amount.

Commission Processing

Generally, information about salespersons associated with the sale and their commissions is specified on an AR invoice, sales invoice, or sales order.

To calculate commissions for the commission period, you use the Calculate Commissions (AR505500) form.

Commissions can be prepared for only the earliest open period. You cannot prepare commissions for a period if the previous period has the Open or Prepared status.

To calculate commissions to salespersons for the commission period, you need to collect commission information over all invoices that were released (or closed if commissions are paid on paid invoices) during the commission period. Each document contains the commission details calculated based on the commission percentages of salespersons associated with the document.

During commission preparation, the documents (invoices or payments) for which commission details have been added to the salespersons' totals are marked as processed in the chosen period.

Note:

Although commission is calculated on the invoices or paid invoices, corresponding commission transactions are not included in the batches generated for invoices or payments; commission amounts are stored with the appropriate documents. To actually pay commissions to the salespersons, you will need to enter all related transactions manually.

Once commissions have been prepared, the commission period should be closed on the Close Commission Period (AR506500) form. On this form, you can also view information about commissions earned by salespersons during any of the closed commission periods.

Selection of a Salesperson at the Document Level

You can select a salesperson or multiple salespersons for a particular document or document line. To do this, you perform the following instructions:

On the Invoices and Memos (AR301000), Invoices (SO303000), or Sales Orders (SO301000) form, for each document line on the Details tab, you specify a salesperson's ID in the Salesperson ID column.
Note:
If the selected customer has a default salesperson specified on the Salespersons tab of the Customers (AR303000) form, the system inserts this salesperson ID automatically, but you can override this setting.
On the Commissions tab of the Invoices and Memos, Invoices, or Sales Orders form, in the Commission % column, you manually specify the needed commission percentage for each of the added salespersons.
By default, on the Commissions tab of these forms, the system will insert the customer-specific percentage specified on the Salespersons tab of the Customers form, if one has been specified. The commission percent for each salesperson is also displayed on the Customers tab of the Salespersons (AR205000) form. If no customer-specific percentage has been specified, the system will insert the salesperson commission percentage specified in the Summary area of the Salespersons form.

Commission Recalculation

If errors in assigning documents to salespersons are detected or important documents arrive later, you may need to recalculate commissions.

If commissions have been prepared for the period, you void them by using the Close Commission Period (AR506500) form.

If the period has been closed, you reopen the period by clicking the appropriate action on the Close Commission Period form and void the prepared commission.

Note:

You can reopen only the latest closed period, but only if commissions for later periods have not been prepared.

You then prepare commissions for the reopened period again and close the period.