Activant Prophet 21 - Epicor · Commission Schedule Maintenance First Of The system finds the first...

Activant Prophet 21

Establishing Commission Matrices in Prophet 21

Commissions Course 1 of 2

This class is designed for…

Sales managersIndividuals charged with establishing commissions

Objectives

Define uses for commissionsEstablish commission rulesDefine commission schedulesAssociate salesreps with commissions

This course will NOT cover…

Sales Order creationInvoice creationEstablishing Sales Pricing matrices

How do commissions work?

Create Salesreps

Assign reps to orders

Create invoices

Assign commission schedules and rules to reps

Generate commissions -based on invoice creation

or cash receipt

Where does the application find commissionable amounts?

System designationSystem Setup/System/System Settings/Order Processing/Cost Sources

Standard CostMoving Average CostOrder Cost

Customer levelEstablished in sales pricing pages in customer pricing matricesCommission cost indicated carries to invoices

Used to calculate commission for salesreps based on commission rules and commission schedules

Commissions in P21

Commissions built by creating rules that apply to items or invoices and then grouping them into schedulesSetting Commission Rates using a specific subset of items or customer, sales location, and territory Split commissions between repsDesignate order takers for commissionsPay commissions by the type of saleOption to post commissions to the general ledger

Company Maintenance

System Setup/System/System Settings/Order Processing/Cost Sources

Company Maintenance

System Setup/System/Company Maintenance

Post Commission AccrualsCommission Expense AccountCommission Accrual Account

If not posting commissions, can still generate report, but will not post to GL

User Maintenance

System Setup/System/User Maintenance

User Maintenance

System Setup/System/User Maintenance

Default Salesrep on OrderThis rep ID will automatically be placed on a sales order if this user is an Order Taker on the order

Default Salesrep in Commission ReportWhen enabled, this salesrep ID will appear as the default on the Commission Report and cannot be changed in the criteria options

Salesrep Commission HierarchySalesrep

Created in Order Processing/System/Salesrep MaintenanceAssigned to orders and eventually invoicesInvoice reviewed for commissions to be paid

Salesreps are assigned commission schedulesCommission schedules contain commission rulesCommission rules determine commission amounts


Salesrep Commission Maintenance

Commission Schedule Maintenance

Commission Rule MaintenanceDetermines:

How to calculate commissions based on gross profit, profit dollars or profit percentWhich parameters must be met to calculate a commissionWhich types of items are included in calculations – stock, nonstock or other charge




Assigns commission rules to commission schedulesDetermines:

How many commission rules apply to the scheduleHow to search commission rulesIf you apply commissions by line or by invoice



Associates a specific commission schedule to repDetermines:

If you pay on invoice creation or cash receiptIf partial payments are eligible for commissionsIf you track quotas or meet a profit threshold for commissions to generateIf you split commissions with the House

Commission Strategy

Determine the methods you use to pay commissions

Outline the general offeringsStructure commission grouping Determine if commissions are splitIdentify individual rep payment structures

Create Salesreps

Order Processing/System/Salesrep Maintenance

Establish Commission Rules

Commissions/Maintenance/Commission Rule Maintenance

Entire Invoice

Line Item

Commission Rule Maintenance

Entire Invoice

Limit by: Customer IDSales LocationTerritory ID


Entire Invoice Line Item


Group By – numerous rulesOrder Disposition Line Thresholds


Entire Invoice Both Line Item


Effective DatesApply to Manufacturer Rep OrdersApply to Service OrderInclude Manual InvoicesNew CustomerNew Item for CustomerCompute Negative Commissions for Credit Invoices

Group By – numerous rulesOrder Disposition Line Thresholds

Breaks Tab

Breaks Tab indicates commission calculations

Break Value

Break Value: Threshold to determine if a commission is calculatedInclusive – calculate up to an including the amount listed before you move to another break

Breaks Type

Break Type: Compute – calculate commission amountExact – determine exact commission earned

Value

Value: Variable for calculation, if set to ComputeAmount of commission, if set to Exact

Factor and Source

Factor and Source:When you compute amounts -

Factor – determines if you calculate a percentage of the source amount or multiply the value by the source amountSource – options of Sales dollars or Profit dollars

Rules – Line Item

All ItemsProduct Group IDSales Discount Group IDSupplier IDItem Commission ClassCustomer IDPrimary Supplier/Mfg ClassCustomer ID/Product GroupCustomer ID/Sales Discount GroupCustomer ID/Primary SupplierCustomer ID/Primary Supplier/Mfg ClassCustomer ID/Item Commission ClassCustomer ID/Item IDCustomer ID/Customer Part NumberFreight CodeSales Location IDItem IDNew CustomerNew Customer/Product GroupNew Customer/Item Commission ClassNew Customer/Item IDNew Customer/Primary Supplier IDNew Item For Customer

Assign Rules to Schedules

Commissions/Maintenance/Commission Schedule Maintenance


Step 1: Enter a schedule ID and description


Step 2: Select a schedule type


First Of The system finds the first rule that pays commission depending on how the rule is defined

Highest Of The system finds the rule that pays the highest commission

Lowest Of The system finds the rule that pays the lowest commission

Sum Of The system totals all the rules that are eligible to pay commission.


NOTE: Schedule option must match the rule type


Inactive v. Delete

Establish Salesrep Commission Maintenance

Commissions/Maintenance/Salesrep Commission Maintenance


Defined by Commission Defaults Maintenance

Salesrep Quota Maintenance

Commissions/Maintenance/Salesrep Quota Maintenance


Step 1: Enter Salesrep ID

Step 2: Enter the fiscal year


Choose Annual, enter the annual quota amount


Select the quota type of PeriodClick on the Period Quotas tab


Enter quota per period


Select quarter and access the Quarter Quotas tab


Enter quota amounts for each quarter


General Ledger/Maintenance/Fiscal Year Maintenance


Assign different schedules based on quota achieved

Copy Salesrep Quotas

Commissions/Maintenance/Copy Salesrep Quotas


Step 1: Retrieve the rep you will use for the copy process

Step 2: Enter the Fiscal Year you will use as the source


Multiplier – applies a factor to the quotas

Increase by 5% - multiplier = 1.05Decrease by 5% - multiplier = .95


Copy To: Another Salesrep or Another Year

Parameters Governing Commission Calculations

Commission Defaults Maintenance



Default values for commission schedules and commission rules – some are editable, others are not

How to include invoices for commission calculations, thresholds, and if the rep splits commissions

Specific calculations for commissions


Commissions/System Menu/Commissions Default Maintenance


Commissions/Maintenance/Commissions Default Maintenance


Limitations on calculations – for Salesrep Commission Maintenance


Impact on Commission Rule Maintenance


Commissions/Maintenance/Commissions Default Maintenance

Summary

Define uses for commissionsEstablish commission rulesDefine commission schedulesAssociate salesreps with commissionsSalesrep QuotasCommission Defaults Maintenance

Documents/Solutions

11.5 New Features Guide – Sales ProcessingSolution 33560 - Explanation of commission accrual journal V 11.5Solution 33408 – Difference between rule commamt and line comm amt on commission reportSolution 32333 – How to calculate negative commissions / 11.5 commissionsSolution 32293 – How to set up a commission rule for zero price, nonzero cost invoices

Documents/Solutions

Solution 28747 – How do you base salesrepcommission off of the vendor commission amountSolution 25552 – Commission calculations for kit/assembly/production order itemsSolution 20933 – Basics/getting started/setting up commissionsSolution 14974 – How to setup/use split commissionsSolution 14931 – How to not have commissions on finance charges

Documents/Solutions

Solution 14931 – Put a cost on a restocking charge for commission cost on an RMASolution 13076 – How to print a calculated Commission Report without committing to databaseSolution 8491 – When do credit and debit memos affect commissionsSolution 8045 – What does the Calculate button do on the Commissions ReportSolution 7522 – Will commissions be calculated on the base of the quota once the quota is met

Documents/Solutions

Solution 7380 - What is the source of the commission cost and other cost on the orderSolution 3822 – How often can I run the Commission ReportsSolution 3360 – How to capture the freight cost on the order/invoice for commission purposesSolution 2683 – How commission cost and other cost are updated when an order is invoicedSolution 1865 – How the commission is calculated when Rule applies to the line item

Documents/Solutions

Solution 1864 – How the commission is calculated when the rule applies to the entire invoiceSolution 1639 – Explanation of when commissions are marked as paidSolution 922 – How to set up zero/0.00 commission rulesSolution 303 – Can you pay Commissions from the Commission Entry ModuleSolution 299 – Do I need to run two salesrepcommission reports – invoices vs. cash receipts

For More Information…

Prophet 21 Help FilesVisit Activant on the web: http://distribution.activant.com/

View Educational Services course offeringsBrowse DocumentationSearch the Solutions databaseSubmit a Support case

E-mail Professional Services [email protected]

Commissions

Calculating CommissionsSelect/review commissions calculatedGenerate the commissions report

Activant Prophet 21 - Epicor · Commission Schedule Maintenance First Of The system finds the first...

Documents

Transcript of Activant Prophet 21 - Epicor · Commission Schedule Maintenance First Of The system finds the first...