Commission Management Setup

To View all pages related to Commission Management, search “Commission Management (COM)”. This will open up the Commission Management Menu.

To complete the following setup, select ‘Setup’ or search for “Commission Management Setup (COM)”.

1. Commission Management Setup (COM)

• General

• Activate Commissions – Turning this on will activate all commissions management related fields in Business Central. 

• Require Commissions Approval – Turning this on will require approval of all commissions journals before posting and paying. 

• Show Salesperson on Line – Turning this on will allow for the Salesperson to be shown on the line of Sales Documents. Keeping it off will keep the Salesperson at the header level of Sales Documents. 

• Include Invoice Discount – Turning this on will deduct the invoice on the sales document header from the commission base amount. 

• Include line discount – Turning this on will deduct the invoice on the sales document line(s) from the commission base amount. 

• Date basis (default) – Indicates whether the commission ledger will be based on the Posting Date or the Document Date. Posting Date is the default but can be changed on each commission rule. 

• Check Paid Date on Pay Journal – Specifies if the Paid Date on the Invoice will be checked prior to Generating Payment Journals. This will only pull in Commission Payments that have been Paid before the Thru Date. 

• Prepayment Account No. – Commissions will be ignored on G/L lines with this Account No. 

• Do Not Auto Calculate – Specifies if you want to prevent Commissions from being calculated as sales document fields are updated. 

• Calculate on Release – Specifies if you want to calculate Commissions when the document is released. 

  • You should turn this on if the Do Not Auto Calculate toggle is turned on. 

• Delete Comm Ledger on Document Delete – Specifies if Commission Ledger Entries will be deleted when the Document is deleted. 

  • Do No Delete 

  • Prompt For Delete 

  • Always Delete 

• Use Ship-to Address Territory Code – Specifies if Commissions will be calculated based on the Ship-to Address Territory Code instead of the Customer Territory Code. 

• Use New Filter System on Commission Matrix –  Allows users to apply Flat Rate Commission rules. It works similarly to percentage commissions in terms of filtering and application, but the calculation for Flat Rate Commissions is based on the quantity invoiced.

• Accounting

• Activate GL Posting – Turning this on will automate posting of General Ledger entries at the time that Commission Ledgers are created. This will occur on both initial entry and on payment of commissions. 

• GL Batch Name – This is the batch used for posting General Ledger entries. 

• Default Credit Account No. – This is the default GL Account that the Credit transaction will post to, it is normally a Commissions Payable Account. 

• Default Debit Account No. – This is the default GL Account that the Debit transaction will post to, it is normally a Commissions Expense Account.

• Notifications

• Notify on Low Net Profit – Specifies if you would like to receive notification emails for Low Net Profit. 

• Low Net Profit Percent – Specifies the percent threshold at which the notification emails would get generated. 

  • Example: If Net Profit Percent is set to 5.00, then it will send a notification email when the Net Profit Percent is within 5%.

• Low Net Profit Email – Specifies the email address to which the notification will be sent to. 

2. Search for Commission Management (COM) and select the related link. Click on User Setup

• User ID – Specifies User ID in Business Central. 

• Permission level – Specifies the permission level of the user. 

  • None – No access 

  • My Commissions – commissions for that user only 

  • All Commissions – commissions for everyone 

  • Admin – All access 

• Can view commission dashboard – If checked, the user will be able to view the commission dashboard. 

• Can override commission – If checked, the user will be able to override commissions.

• Can approve commission – If checked and approval turned on, the user will be able to approve commissions.

3. Sales Team – If commissions are split between team members, create a Sales Team for them. Screenshot example below: Preston and Pat each receive 50% of the commission amount.

• Setup

• Team No. – Specifies the unique name of the Sales Team for Commission splits. 

• Description – Specifies the description of the Sales Team for reference. 

• Pay-To Type – Employee or Vendor. 

• Pay-To No. – Employee or Vendor No. that will be paid. 

• Pay-To Date – Specifies if the commission will be paid out On Invoicing or On Payment Receipt. 

• Split Percent – Specifies the percentage split for each Employee/Vendor in the Sales Team.  

4. Sales Group: If a group of employees have the same commission percentages/amounts, create a Sales Group for them. Screenshot example below: External Salespeople receive 50% commission whereas Internal Salespeople receive 25% commission.

• Setup

• Group No. – Specifies the unique code of the Sales Group that will be assigned on the Salesperson card. 

• Group Name – Specifies the Name of the Sales Group.

5. Territory Setup: If your Salespeople or Vendors have commissions based on Territory, create Territories for them. Screenshot example below: Salespeople commissions are based on whether the Customer is from North, South, East, or West territories.

• Territory Code – Specifies the unique code of the Territory that will be assigned to the Customer card. 

• Territory Name – Specifies the Name of the Territory. 

6. Commission Matrix

• Entry No. – Unique rule number that will be tagged in the Commission Journal. 

• Description – Description for the specific type of commission, this will pull into the Commission Journal for visibility. 

• Include on quote order/invoice/return order/credit memo – If checked, each of these documents will use commissions. Note: Quote commissions are estimated commission predictions. 

The following filters indicate the commission will ONLY be calculated if it has the following filters. NO filter means everything will be included. Filters now support exclusions and ranges. Use ".." to allow for a range of values and "<>" to exclude values.

• Salesperson filter 

• Sales Group filter 

• Customer filter 

• Customer Posting Group filter 

• Gen. Bus. Posting Group filter  

• Customer State Filter 

• Customer Country Filter 

• Territory Filter

• Type Filter 

• Item No. Filter 

• Item Category Filter 

• Gen. Prod. Posting Group Filter 

• Dimension Filters  

• Rule Group No. – Specifies the Group No. for Rules which are used to group rules together for the totaling of Monthly, Quarterly, or Yearly Commissions. 

• Apply Sales Team – Indicates if the commission matrix rule can be split based on the sales team specified on the sales document. 

• Start Date – Starting date for the commission rule to take effect.

• End Date – Ending date for the commission rule to end. 

• Recurring Expire Data Formula – If you are using ERP Connect Recurring Invoicing, and you want to have commissions expire at some point, this is the date formula used to do that calculation. 

  • The commission rule will continue until that date formula has been reached. 

• Commission Period Basis – 4 options 

• Document – Defaulted option and most used. Commissions are based on the document alone. 

• Monthly – Accrues for the month based on posting date for the calendar month and uses a minimum revenue amount to generate commissions. If it is over the minimum amount then commissions will be paid out, otherwise it will be ignored. 

• Quarterly – Accrues for the quarter based on posting date for calendar months and uses a minimum revenue amount to generate commissions. If it is over the minimum amount then commissions will be paid out, otherwise it will be ignored. 

• Yearly – Accrues for the year based on posting date for the calendar year and uses a minimum revenue amount to generate commissions. If it is over the minimum amount then commissions will be paid out, otherwise it will be ignored. 

• Minimum Amount –  Specifies the minimum amount for the value of the document to be to use the rule. If document value is below the minimum amount, the rule will be ignored. If above, the rule will be used. 

  • Example: Minimum Amount is set to $1,000 for the rule and a Sales Order comes in for $999. The rule will be ignored.  

• Maximum Amount – Specifies the maximum amount for the value of the document to be to use the rule. If the document value is above the maximum amount, the rule will be ignored. If below, the rule will be used. 

  • Example: Maximum Amount is set to $10,000 for the rule and a Sales Order comes in for $8,000. The rule will be used.

• Percent Commission - % to pay the Employee/Vendor. 

• Commission Amount Basis – 5 options 

• Revenue – Commission based on the Amount of the document line. 

• Adjusted Revenue – Commission based on the Amount of the document line multiplied by a percentage. (i.e. if you have a fee from a service for selling an item that you want to adjust the revenue for). 

• Example: Microsoft takes 10% of revenue for all apps sold, so Commission Amount Basis would be set to Adjusted Revenue and Adjusted Revenue Multiplier would be 0.90. 

• Profit – Commission based on the Amount of the document line minus the unit cost times quantity on the document line. 

• Adjusted Profit – Commission based on the Amount of the document line minus the adjusted unit cost on the item card times quantity on document line. Useful to account for costs not included in inventory cost, as a fixed amount per quantity. 

• Profit (Cost Plus) - Commission based on the Amount of the document line minus the unit cost times quantity on the document line plus a percent of the cost. Useful to account for costs not included in inventory cost, as a percent of cost. 

• Profit (Actual Cost) - Commission based on the Amount of the document line minus the ACTUAL inventory cost for that document line. Useful when you have special order items or purchases linked to the sales document. 

• Custom – Custom code to do the commission amount calculation. 

• Adjusted Revenue Multiplier – If the Commission Amount Basis is Adjusted Revenue, then this multiplier is used to determine actual amount from the amount on the sales line. 

  • Example: Microsoft takes 10% of revenue for all apps sold, so Commission Amount Basis would be set to Adjusted Revenue and Adjusted Revenue Multiplier would be 0.90. 

• Cost Plus Multiplier – If Commission Amount Basis is Profit (Cost Plus), then this multiplier is used to determine actual basis amount from the unit cost plus percentage on the sales line. 

• Get Pay-to from – Indicates to get the Pay-to information from the salesperson code on the document rather than from the rule.

• Pay-to Type – Specifies whether you will pay an Employee or Vendor. 

• Pay-to No. – Specifies the exact Employee or Vendor No. you will pay. 

  • Note: You will need to turn on the ‘Commissionable’ toggle on each Employee and Vendor that requires commissions. This can be found under the Payments FastTab for Employees and Invoicing FastTab for Vendors.

• Pay-To Date – Specifies whether to pay the Employee or Vendor On Invoicing or On Payment Receipt. 

  • On Invoicing is the default. 

• Default Credit Account No. – Defaults from the Commissions Management Setup page but can be changed on a rule-by-rule basis.  

• Default Debit Account No. – Defaults from the Commissions Management Setup page but can be changed on a rule-by-rule basis. 

commission management setup.pdf

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