Overview

Sales partners play a vital role in driving business growth by generating leads and closing deals. To ensure that your sales partners are motivated and rewarded for their efforts, iVendNext provides a comprehensive system for recording and managing sales partner commissions. This article will guide you through the process of setting up, recording, and managing sales partner commissions in iVendNext.

To pay to the Sales Partner, you need to create a Supplier* with Sales Partner name and a Supplier Group* as Sales Partner and assign it to the Supplier.

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:

1. Navigate to Home > Selling.

2. Under the Selling section, click on the Sales Partner shortcut.

3. Click on the Add Sales Partner button.

4. Enter the sales partner’s name and commission rate.

5. 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:

1. Open the sales transaction (e.g., Sales Order, Delivery Note, or Sales Invoice).

2. In the Sales Partner field, select the appropriate sales partner.

3. 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:

1. Navigate to Home > Buying.

2. Under the Buying section, click on the Supplier shortcut.

3. Click on the Add Supplier button.

4. Enter the supplier details, including the sales partner’s name.

5. 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:

1. Navigate to Accounts > Standard Reports > Sales Partners Commission.

2. Select the sales partner and the date range.

3. Generate the commission report.

4. 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:

1. Navigate to Accounts > Standard Reports > Sales Partners Commission.

2. Select the sales partner and the date range.

3. 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:

1. Navigate to Selling > Standard Reports > Sales Partner Transaction Summary.

2. Select the sales partner and the date range.

3. The report will display the commissions earned for each sales transaction.

6. Best Practices for Managing Sales Partner Commissions

6.1 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.

6.2 Regularly Review Commission Reports

Regularly reviewing commission reports will help you:

• Ensure that commissions are being calculated correctly.

• Identify top-performing sales partners.

• Make adjustments to your commission policies if necessary.

6.3 Communicate Commission Plans to Partners

Transparency is key to maintaining a good relationship with your sales partners. Make sure that all partners understand how commissions are calculated and what they need to do to earn them. Regularly communicate updates to the commission structure and recognize top-performing partners.

7. Conclusion

Effectively recording and managing sales partner commissions in iVendNext can significantly enhance your relationship with your partners and drive business growth. By setting up sales partners, defining commission rates, and regularly reviewing commission reports, you can ensure that your partners are compensated accurately and on time.