Commissions

Question

Dear experts,
we have a legal requirement to process the payment of Intra-company commissions with a debiting process instead of a crediting process (as we are using up to now). Currently we are collecting the commission values on Rebate Agreements which we settle at the end of the period (using the integrated settlement functionality of the rebates that clear the accruals and issue a credit note).
As in this process there is no functionality to debit these values (should be initiated by the receiving company of the commissions instead of the owing one as above) the rebate functionality seems not to be correct.
I guess we will have to design a commission process, with new condition types that create the accruals. What I do not know is how those should be selected after the period (Z-Report ?) and how the settlement/payment process should be set up, allowing the receiving company to invoice the open commissions and clear the accrual accounts.
Thanks in advance for any best-practice reference!
Best regards,
stefan

Answer 1

Hi Suda,
Our commission report would include the following columns:
Sales Employee, Customer, Inv #, Inv Date, Inv Total, Inv Sales Amt* (to be used for commission calculation), Payment Receipt Date, Receipt Amount, Comm %, Calculation for Commission to be paid (Receipt amount x (Sales Amt/Inv Total) x Comm %)
*Per invoice item row, there are 2 unit prices involved. "Unit price" brings in the value from the price list. In some cases (per cust's request), we add freight/hub fees to the unit price using "Price after Discount." In this way, the invoice total will reflect total price including fees. However, we only want to pay commission based on Sales Amt (orig unit price x quantity). So we also need to have some way to sum up the sales amts for each row for the total Inv Sales Amt.
In this case we would need to group and show the Commission subtotal for each Sales Employee.
Hope this is clear-any help you can provide is much appreciated!