Commission Agreements Workspace

Use this workspace to manage commission agreements.

These agreements are used for calculating commissions that are payable to your company's employees.

The Sales Representative field in the Employees workspace identifies an employee as a sales representative. You can then use the employee in the Sales Rep. No. field in various places in Maconomy, and you can create commission agreements for the employee.

You can assign a commission agreement to more than one employee. When you create a commission agreement for an employee, you define its period of validity. Use the Employee Commission Agreements workspace to identify which commission agreements apply to which employees.

Maconomy calculates commission from either sales or gross profit margin. Maconomy calculates "Sales" from invoiced line (or extended) prices in invoices and credit memos. Maconomy finds the line price by multiplying unit price by quantity, dividing by price unit, and deducting line discount. Maconomy also deducts invoice discount, distributing it proportionately to the invoice and credit memo lines. Maconomy finds the profit margin by subtracting the cost of sales from sales. The cost of sales is the cost multiplied by quantity, divided by price unit.

You can enter various commission rates to apply to your target combinations of customer group, item group, and activity number, and also on various amount limits. If you include an item group in a target for a commission rate, Maconomy never uses this commission rate for sales and profit margins from invoices and credit memos in the Job Cost module because these do not include items, and hence not item groups. If you include an activity in a target for a commission rate, Maconomy never uses the commission rate for sales and profit margins from invoices and credit memos from the Sales Orders module because these do not reflect activities.

When Maconomy calculates a commission for an employee, the commission basis is converted into enterprise currency, making it possible to measure the basis against the amount limits that you enter in this workspace. After this, Maconomy runs through the lines in the commission agreement, starting at the top. This means that Maconomy uses the first commission rate that applies to the target. If there is more than one line that fits the target, Maconomy calculates the commission separately for every amount limit.

Maconomy always calculates commission on a monthly basis; that is, the amount limit refers to the sales or profit margin in a calendar month.

For auditing purposes, it is recommended that you print and file the Commission Agreements workspace every time that you change it. Use the Print This function in the File menu.