Recording and Managing Sales Partner Commissions
Overview
This article will guide you through the process of setting up, recording, and managing sales partner commissions in iVendNext.
1. Introduction to Sales Partner Commissions
Sales partner commissions are payments made to partners based on the sales they generate. These commissions are typically calculated as a percentage of the net total of sales orders, delivery notes, or sales invoices. In iVendNext, you can easily record and manage these commissions, ensuring that your partners are compensated accurately and on time.
2. Setting Up Sales Partner Commissions
2.1 Creating a Sales Partner
Before you can record commissions, you need to create a sales partner in iVendNext. Here’s how:
Navigate to Home > Selling.
Under the Selling section, click on the Sales Partner shortcut.
Click on the Add Sales Partner button.
Enter the sales partner’s name and commission rate.
Optionally, select the type of sales partner (e.g., Reseller, Retailer) and save.
2.2 Defining Commission Rates
For each sales partner, you can define a commission rate. This rate will be applied to the net total of sales transactions (e.g., Sales Orders, Delivery Notes, or Sales Invoices) where the partner is selected. The commission amount is automatically calculated based on the net total and the defined commission rate.
3. Recording Commissions in Sales Transactions
3.1 Adding Sales Partners to Transactions
To record commissions, you need to add the sales partner to the relevant sales transaction. Here’s how:
Open the sales transaction (e.g., Sales Order, Delivery Note, or Sales Invoice).
In the Sales Partner field, select the appropriate sales partner.
Save the transaction.
Once the transaction is saved, the commission amount will be automatically calculated based on the net total and the commission rate defined for the sales partner.
3.2 Commission Calculation Example
For example, if a sales partner has a commission rate of 5% and the net total of a sales order is $1,000, the commission amount will be calculated as follows:
Commission Amount = Net Total * Commission Rate
Commission Amount = $1,000 * 5% = $50
4. Managing Sales Partner Commissions
4.1 Creating a Supplier for Sales Partners
To pay commissions to sales partners, you need to create a supplier for each partner. Here’s how:
Navigate to Home > Buying.
Under the Buying section, click on the Supplier shortcut.
Click on the Add Supplier button.
Enter the supplier details, including the sales partner’s name.
Assign the supplier to a Supplier Group (e.g., Sales Partner).
4.2 Generating Payment Entries
Once the supplier is created, you can generate payment entries for the commissions due to the sales partner. Here’s how:
Navigate to Accounts > Standard Reports > Sales Partners Commission.
Select the sales partner and the date range.
Generate the commission report.
Create a payment entry for the amount due to the sales partner.
5. Generating Commission Reports
iVendNext provides several reports to help you track and manage sales partner commissions. These reports include:
5.1 Sales Partner Commission Summary
This report provides a summary of commissions earned by each sales partner. To generate this report:
Navigate to Accounts > Standard Reports > Sales Partners Commission.
Select the sales partner and the date range.
The report will display the total commissions earned by the selected sales partner.
5.2 Sales Partner Transaction Summary
This report provides a detailed breakdown of commissions earned by sales partners for each sales transaction. To generate this report:
Navigate to Selling > Standard Reports > Sales Partner Transaction Summary.
Select the sales partner and the date range.
The report will display the commissions earned for each sales transaction.
6. Define Clear Commission Policies
Before setting up commissions in iVendNext, it’s important to define clear and transparent commission policies. This includes:
Commission Rates: Decide on the commission rates for different types of sales partners.
Payment Terms: Define the payment terms (e.g., monthly, quarterly) for commissions.
Thresholds: Set thresholds for higher commission rates based on sales performance.
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