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13dis60s-commission

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13dis60s-commission

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    Unit 13Commission Processing

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    4/29/2010

Unit 13Commission Processing

    Unit Introduction ........................................................................................................ 1

    Unit Objectives ..................................................................................................... 1

    Terminology .......................................................................................................... 2 Commission Processing ............................................................................................ 3

    Commission Processing Parameters .................................................................... 4

    Commission Codes .............................................................................................. 5

    Commission Planning/Setup Considerations .................................................. 7

    Sales Commission Rate Maintenance ................................................................ 10

    Commission Rate Maintenance Example...................................................... 11

    Commission Rates List ................................................................................. 12

    Commission Generation ..................................................................................... 13

    Commission Payment List/Update ................................................................ 14

    Commission Maintenance .................................................................................. 15

    Commission Calculation ..................................................................................... 16

    Base Amount ................................................................................................. 16 Order Close/Purge ................................................................................................... 19

    Commission Processing Review .............................................................................. 23

    List of Figures

    Figure 13-1. Commission Processing ....................................................................... 3

    Figure 13-2. Commission Processing Parameter ..................................................... 4

    Figure 13-3. Default Hierarchy for Primary Salesperson .......................................... 6

    Figure 13-4. Three Salespersons Associated with an Order .................................... 7

    Figure 13-5. Commission Generation ....................................................................... 8

    Figure 13-6. Commission Codes .............................................................................. 9

    Figure 13-7. Commission Generation ..................................................................... 13

    Figure 13-8. Commission Maintenance .................................................................. 15

     Table of Contents 13-i

    Figure 13-9. Base Amount Example ....................................................................... 16 Figure 13-10. Month-End Sales and Commission Processing ................................ 17 Figure 13-11. Sales and Commission Processing Summary .................................. 18 Figure 13-12. Order Close/Purge Files ................................................................... 20 Figure 13-13. Order Close/Purge Process Flow ..................................................... 21 List of Tables

    Table 13-1. Commission Rates Maintenance Setup ............................................... 11

13-ii Supply Chain Management WorkshopStudent Guide

Unit Introduction

    This unit explains the controls governing sales commission processing and the activities involved. Commission processing can be implemented at any point. With the use of the Billing and Sales Analysis product for setup and maintenance activity and to generate invoices, which are the basis for commissions. The Configurable Order Management product is also required for the generation of customer orders.

    Unit Objectives

    At the end of this unit you will be able to:

    ? Identify options in master files which affect commissions. ? Explain the setup required to calculate commissions. ? Establish commission rates.

    ? Process customer orders to generate commissions.

     Commission Processing 13-1

Terminology

    Listed below are terms presented in this unit.

    The base value upon which commission is calculated Base Amount Commission

    The allowance made to an agent for transacting business for Commission

    another.

    Commission codes may be assigned to salespersons, items, Commission Code

    and customers which are used as pointers to commission

    rates.

    Commission rates establish the qualifiers and associated Commission Rate

    percentages for assigning commission payment.

    One salesperson is required in BPCS. As many as three Salesperson

    salespeople may split the commission amount for an

    individual order line. 13-2 Supply Chain Management WorkshopStudent Guide

Commission Processing

    A commission is calculated based on pointers coming from an item, customer and

    salesperson, which point to a specific commission rate. The maintenance of commission

    rate structures in BPCS supports a wide flexibility in establishing commission handling.

    Key factors in implementing commission processing are:

    ? Whether all salespeople are eligible for the same percentages, or the percent varies

    based on salesperson.

    ? Whether the concept of primary salesperson is applicable to your business. If it is not

    applicable, a logical salesperson can be set up as a default.

    The figure illustrates Commission Processing files and information put into those files.

    SSM

    Salesperson

    Master

    Commission

    Processing

    SCR

    Commission

    Rates

    Figure 13-1 Commission Processing

     Commission Processing 13-3

Commission Processing Parameters

    System Parameters Generation (SYS800) determines the level, timing, and extent of

    commissions.

    The figure illustrates Commission Processing Parameters.

     Commission at Line Level 1(1=Yes 0=No)

     Pay Commission upon Payment 0(1=Yes 0=No)

     Commission on Special Lines 0(1=Yes 0=No)

    Figure 13-2 Commission Processing Parameter

    The fields reflect these three decisions:

    ? Whether commissions are to be paid based upon specific items or based upon an entire

    order

    ? Whether commissions are to be paid when the customer is invoiced or when the

    customer has paid the invoice in full, and

    ? Whether the salesperson is to receive commissions for services performed ("special

    lines" on the invoice) or only for inventory items sold ("regular lines" on the invoice). 13-4 Supply Chain Management WorkshopStudent Guide

Commission Codes

    Commission codes are user-defined for customers, items, and salespeople. Commission

    codes must be set up prior to being assigned. Setup is done in Code Master Tables

    (SYS105). Any combination of the three codes are used as a rate, which determines sales

    commission percentages in the Sales Commission Rates Maintenance program (SAL120).

    The commission codes are carried throughout the order entry and billing processes into

    the Sales Invoice History file (SIH).

    ? Note

     In order entry and billing, it is the commission code associated with a salesperson

    number, not the salesperson number itself, determining the percentage commission. The salesperson’s commission code is used with the customer and item commission codes

    to point to the correct commission rate. A commission can be split for up to three salespersons.

    ? Salesperson Master (SAL100)

    ? At least one salesperson required in the system (required field in Customer

    Master)

    ? Each customer assigned a default salesperson

    ? Primary Salesperson defaults from the Ship-To Customer assigned to the ordering

    Customer Master during order entry

    ? Can be overridden at the order level under pricing, sales and commissions

    ? Salesperson 2 is added at the order level under pricing, sales and commissions

    ? Salesperson 3 is added at order line level

     Commission Processing 13-5

The figure illustrates the default hierarchy for the Primary Salesperson:

    Salesperson Defaults from:

    1. Ship-To(Ship-To File EST) Record

    2. Ship-To(Customer Master File RCM) Customer

    Figure 13-3 Default Hierarchy for Primary Salesperson

    13-6 Supply Chain Management WorkshopStudent Guide

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