Adding a New Commission Rule
Commission rules allow you to define how sales commissions are calculated for employees, either as a tiered commission calculated across a sales period based on target achievement percentage, or as a fixed commission calculated directly on each invoice.
Steps to Add a Commission Rule
- Click on the “Targeted Sales & Commissions” menu.
- Click on “Commission Rules.”
- Click the button then click “Add Commission Rule.”
- From the “Commission Information” section, fill in the following fields:
- Name (Required): Enter a name for the commission rule.
- Status (Required): Select the rule status — “Active” or “Inactive.” Active is selected by default.
- Time Period (Required): Select the time period for commission calculation, such as “Monthly.”
- Currency (Required): Select the currency for the commission rule.
- Commission Calculation (Required): Select the basis for calculating the commission.
- Fully Paid Invoices: Commission is calculated only on fully paid invoices.
- Partially Paid Invoices: Commission is calculated on both fully paid and partially paid invoices.
- Notes (Optional): Add any additional details or context for the rule.
- From the “Target Information” section, specify:
- Target Type (Required): “Amount” to set the target as a revenue value, or “Quantity” to set it as a sales volume.
- Target Value (Required): Enter the value to be achieved. Must be greater than zero.
- From the “Rule Information” section, select the rule type:
- Tiered Commission: Converts the achievement percentage into a commission based on progressive tiers — see the “Setting Up Tiered Commission” article.
- Fixed Commission: Commission is calculated directly on each qualifying line item without tiers — see the “Setting Up Fixed Commission” article.
- From the “Assign To (select at least one)” section, specify the entities the rule applies to using the fields: “Employees”, “Roles”, or “Departments” — see the “Assigning a Commission Rule” article.
- Click “Save.”
How the System Works
- When either rule type is selected, its configuration section appears and the other type’s section is hidden. You can switch between them freely without a confirmation message and without losing data, the system retains each type’s data independently.
- Upon saving, the system finalizes only the currently selected rule type.
Validation Rules
- Required fields in the Commission Information and Target Information sections must be filled in before saving.
- The target value must be greater than zero, otherwise the message appears: “Target value must be greater than zero.”
- The rule must be assigned to at least one entity, otherwise the message appears: “Please assign the commission rule to at least one employee, role, department, or branch.”