Define the number of days you will allow a customer to go without paying on an invoice before it affects the salesperson's commission. To encourage your salespeople to collect payment quickly, you can base commission percentages on the number of days it takes to collect payment. The longer the customer takes to pay, the more the salesperson's commission is reduced.
You can set up this feature in Sales Order Entry, Customer Maintenance, or Commission Plan Maintenance. When running the Unpaid Commissions Report, the system checks this setup in the following order: Sales Order Entry, the ship-to customer, the bill-to customer, the commission plan, and finally, if commission by collection days data is found in any of these areas, the system pays full commission anytime before and including the maximum collection days defined on the order header, and pays 0 percent commission for anything over the maximum collection days. If no commission by collection days data, commission is paid as usual. When running the Unpaid Commissions Report the system uses the current date as payment date.
Run the Commissions Report for paid invoices or run the Unpaid Commissions Report to calculate partial commissions based on the number of days to collect. Running the Commissions Report for invoiced commissions is not affected by this operation.
To base commission percentages on maximum collection days:
Display the Commission % by Collection Days dialog box from one of the following areas:
Customer Maintenance - Select Maintenance > Customer > Pricing > Credit Controls > Edit.
Commission Plan Maintenance - Select Maintenance > Price Maintenance > Commission Plan > File.
Sales Order Entry - Select Orders > Sales Order Entry > Header > Edit.
In the Day Range column, enter the range of days for which the commission is not affected. For example, from 0 to 30 days, the salesperson receives full commission.
In the Commission % column, enter 100. For example, if the customer pays within 0 to 30 days, the salesperson receives 100 percent commission.
On additional lines in the Day Range column, list the ranges of days for which unpaid invoices affect the percentage of commission earned. For example, your second range might be from 31 to 50 days.
Note: The Over Max Collection Days field on the Commissions Report window must be set to Exclude to respect entries on this screen.
On additional lines in the Commission % column, list the commission percentages the salesperson earns for each range. For example, from 31 to 50 days, the salesperson earns 80 percent of the commission.
To analyze the potential commission payment liabilities for your salespeople, run the Unpaid Commissions report.
Save your changes and exit the window.
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