Managing Commissions: Process Activity

The following activity will walk you through the process of setting up and calculating salesperson commissions.

Attention: This activity is based on the U100 dataset. If you are using another dataset, or if any system settings have been changed in U100, these changes can affect the workflow of the activity and the results of the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story

Suppose that the management of SweetLife Fruits & Jams has decided to introduce commission payments to its salespeople. According to the company's commission plan, each salesperson will earn a monthly 10% commission on every sale. Commissions should be calculated on each invoice amount.

Further suppose that after the plan became effective, Grace Norman sold training courses to one of the customers, Allen's Bakery, on 1/30/2025.

Acting as the SweetLife chief accountant, you need to set up commissions in the system, create an invoice with Grace Norman specified as a salesperson for it, and calculate this salesperson's commission for January.

Configuration Overview

In the U100 dataset, the following tasks have been performed to support this activity:

  • The following features have been enabled on the Enable/Disable Features (CS100000) form:
    • Standard Financials, which provides the standard financial functionality
    • Multibranch Support, which supports multiple branches in your instance of MYOB Acumatica
    • Multicompany Support, which supports multiple companies within one tenant

On the Accounts Receivable Preferences (AR101000) form, the Hold Documents on Entry check box has been selected in the Data Entry Settings section.

On the Customers (AR303000) form, the ABAKERY (Allen's Bakery) customer has been defined.

On the Employees (EP203000) form, the Grace Norman employee record has been created.

Process Overview

In this activity, you will perform the following steps:

  1. On the Enable/Disable Features (CS100000) form, enable the Commissions feature.
  2. On the Accounts Receivable Preferences (AR101000) form, review the commission settings.
  3. On the Salespersons (AR205000) form, create the salesperson and specify the default commission percentage for her.
  4. On the Customers (AR303000) form, update the customer's settings by specifying the default salesperson for the customer.
  5. On the Invoices and Memos (AR301000) form, create and release a commissionable invoice.
  6. On the Calculate Commissions (AR505500) form, prepare commissions for January.
  7. On the Close Commission Period (AR506500) form, close the commission period.

System Preparation

Before you begin the setup and calculation of commissions, do the following:

  1. Launch the MYOB Acumatica website with the U100 dataset preloaded, and sign in as Anna Johnson by using the johnson username and the 123 password.
  2. In the info area, in the upper-right corner of the top pane of the MYOB Acumatica screen, make sure that the business date in your system is set to 1/30/2025. If a different date is displayed, click the Business Date menu button and select 1/30/2025 on the calendar. For simplicity, in this activity, you will create and process all documents in the system on this business date.
  3. On the Company and Branch Selection menu on the top pane of the MYOB Acumatica screen, select the SweetLife Head Office and Wholesale Center branch.

Step 1: Enabling the Needed Feature

To enable the Commissions feature, do the following:

  1. Open the Enable/Disable Features (CS100000) form.
  2. On the form toolbar, click Modify.
  3. Select the Commissions check box in the Advanced Financials group of features.
  4. On the form toolbar, click Enable to enable the feature.

Step 2: Reviewing the Accounts Receivable Preferences

To review the commission-related settings, do the following:

  1. Open the Accounts Receivable Preferences (AR101000) form.
  2. On the General tab (Salesperson Commission Settings section), make sure that the following options are specified:
    • Salesperson Commission By: Invoice
    • Commission Period Type: Monthly

Step 3: Specifying the Salesperson's Default Commission

To create the salesperson and specify her default commission percentage, do the following:

  1. On the Salespersons (AR205000) form, create a new record.
  2. In the Summary area, specify the following settings:
    • Salesperson ID: GNORMAN
    • Is Active: Selected
    • Name: Grace Norman
    • Default Commission %: 10

      This commission percentage can be overridden for a particular invoice.

  3. On the Customers tab, click New Row on the table toolbar and specify the following settings in the added row:
    • Customer: ABAKERY
    • Commission: 10 (inserted automatically)
    Tip: This step is optional because you have already specified the default commission percentage. On this tab, you can create a list of customers the salesperson works with, and specify the particular commission percentage for every customer if this percentage differs from the default one.
  4. On the form toolbar, click Save.

Step 4: Updating the Customer's Settings

To specify Grace Norman as the default salesperson for the customer, do the following:

  1. On the Customers (AR303000) form, open the ABAKERY customer.
  2. On the Salespersons tab, notice that Grace Norman has been added as a salesperson for this customer. Select the Default check box in this row, which is the only row on the tab.
  3. On the form toolbar, click Save.

Step 5: Creating a Commissionable Invoice

To create an invoice in which Grace Norman’s commission will be specified, do the following:

  1. On the Invoices and Memos (AR301000) form, create a new record.
  2. In the Summary area, specify the following settings:
    • Type: Invoice
    • Date: 1/30/2025 (inserted automatically)
    • Customer: ABAKERY
    • Description: Training
  3. On the Details tab, click Add Row on the table toolbar and specify the following settings in the added row:
    • Branch: HEADOFFICE
    • Ext. Price: 1590

    Notice that the Commissionable check box is automatically selected for this row.

  4. Go to the Commissions tab and review the settings on this tab.

    Grace Norman has been added as a salesperson for this invoice, and the commission amount of $159 has been calculated by the system.

  5. On the form toolbar, click Remove Hold and then click Release to release the invoice.

Step 6: Preparing Commissions

To prepare commissions for Grace Norman, do the following:

  1. Open the Calculate Commissions (AR505500) form.
  2. In the Commission Period box, make sure that 01-2025 is selected.

    In the Status box, the status of the 01-2025 commission period is Open. It means that commissions can be prepared for this period.

  3. Make sure that a record for Grace Norman is displayed in the table. On the table toolbar, click Process All.
  4. In the warning dialog box that is displayed, click OK.

    The system processes the commission and changes the status of the commission period to Prepared.

Step 7: Closing the Commission Period

To close the 01-2025 commission period, do the following:

  1. Open the Close Commission Period (AR506500) form.
  2. Make sure that 01-2025 is displayed in the Commission Period box.
  3. Make sure that the Status box contains Prepared. You can close the commission period only if it has this status.
  4. Make sure that the table displays Grace Norman and her $159 commission.
  5. On the More menu, click Close Period to initiate the process of collecting commission information and then close the period.

    If the operation completes successfully, the system changes the status of the commission period to Closed.