{"id":140336,"date":"2026-07-13T07:34:34","date_gmt":"2026-07-13T07:34:34","guid":{"rendered":"https:\/\/docs.daftra.com\/user_manual\/%d8%af%d9%84%d9%8a%d9%84-%d8%b4%d8%a7%d9%85%d9%84-%d9%84%d9%86%d8%b8%d8%a7%d9%85-%d8%a7%d9%84%d8%b9%d9%85%d9%88%d9%84%d8%a7%d8%aa\/"},"modified":"2026-07-13T10:35:47","modified_gmt":"2026-07-13T10:35:47","slug":"a-complete-guide-to-the-commission-system","status":"publish","type":"user_manual","link":"https:\/\/docs.daftra.com\/en\/user_manual\/a-complete-guide-to-the-commission-system\/","title":{"rendered":"A Complete Guide to the Commission System"},"content":{"rendered":"<section class=\"wpb-content-wrapper\"><p>[vc_row][vc_column][vc_column_text]The commission system allows you to fully manage sales employee commissions, from configuring commission rules and defining the calculation method (fixed commission per invoice or tiered commission tied to target achievement), to assigning rules to employees, departments, and roles, and tracking sales periods and approving final commissions. This guide covers the complete system workflow.<\/p>\n<p><strong>Before You Begin<\/strong><\/p>\n<ul>\n<li>Make sure the &#8220;<strong>Targeted Sales &amp; Commissions<\/strong>&#8221; app is activated through the App Management screen.<\/li>\n<li>The commission system consists of three main screens within the &#8220;<strong>Targeted Sales &amp; Commissions<\/strong>&#8221; menu: Commission Rules, Sales Periods, and Sales Commissions.<\/li>\n<li>Make sure employee, department, and role data is configured before creating commission rules.<\/li>\n<\/ul>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_empty_space height=&#8221;64&#8243; css=&#8221;.vc_custom_1677491013241{margin-left: 120px !important;}&#8221;][vc_custom_heading text=&#8221;Understanding the Two Commission Calculation Methods&#8221; font_container=&#8221;tag:h2|font_size:28|text_align:center|color:%2304306b|line_height:2&#8243; use_theme_fonts=&#8221;yes&#8221; css=&#8221;.vc_custom_1783933350491{margin-left: 200px !important;background-color: #f6f9fc !important;border-radius: 4px !important;}&#8221;][vc_column_text]The system provides two commission calculation methods, which you choose when creating a rule:<\/p>\n<ul>\n<li><strong>Fixed Commission:<\/strong> Calculated directly on each qualifying invoice, either as a percentage of the line item value or a fixed amount, without tiers and without any link to target achievement. Suitable for rewarding each sale immediately.<\/li>\n<li><strong>Tiered Commission:<\/strong> Calculated at the sales period level based on the employee&#8217;s target achievement percentage, with the commission value progressing between tiers you define in advance. Suitable for tying commission to performance and motivating employees to achieve sales targets.<\/li>\n<\/ul>\n<p>The key difference lies in the timing of calculation: fixed commission shows its value on each commission record as soon as the invoice is created, while tiered commission is calculated at the period level as a whole and appears as a dash &#8220;<strong>\u2014<\/strong>&#8221; in individual records.[\/vc_column_text][vc_custom_heading text=&#8221;Creating a New Commission Rule&#8221; font_container=&#8221;tag:h2|font_size:28|text_align:center|color:%2304306b|line_height:2&#8243; use_theme_fonts=&#8221;yes&#8221; css=&#8221;.vc_custom_1783933417385{margin-left: 200px !important;background-color: #f6f9fc !important;border-radius: 4px !important;}&#8221;][vc_column_text]<\/p>\n<ol>\n<li>Click on the &#8220;<strong>Sales Target &amp; Commissions<\/strong>&#8221; menu, then &#8220;<strong>Commission Rules<\/strong>&#8220;, then &#8220;<strong>New Commission Rule<\/strong>.&#8221;<\/li>\n<li>From the &#8220;<strong>Commission Information<\/strong>&#8221; section enter: name, status (Active \/ Inactive), time period (Monthly \/ Quarterly \/ Annually), currency, commission calculation basis, and notes.<\/li>\n<li>From the &#8220;<strong>Target Information<\/strong>&#8221; section, specify the target type (Amount \/ Quantity) and value, must be greater than zero.<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<blockquote><p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-140252\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_09h48_30.png\" alt=\"\" width=\"1638\" height=\"827\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_09h48_30.png 1638w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_09h48_30-300x151.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_09h48_30-1024x517.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_09h48_30-768x388.png 768w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_09h48_30-1536x776.png 1536w\" sizes=\"auto, (max-width: 1638px) 100vw, 1638px\" \/><\/p><\/blockquote>\n<p>[\/vc_column_text][vc_message message_box_style=&#8221;3d&#8221; message_box_color=&#8221;alert-warning&#8221;]In fixed commission rules the target is used for tracking and performance measurement only and does not affect commission calculation. In tiered rules, the target achievement percentage is the basis of the calculation.[\/vc_message][vc_custom_heading text=&#8221;Setting Up Fixed Commission&#8221; font_container=&#8221;tag:h2|font_size:28|text_align:center|color:%2304306b|line_height:2&#8243; use_theme_fonts=&#8221;yes&#8221; css=&#8221;.vc_custom_1783935635668{margin-left: 200px !important;background-color: #f6f9fc !important;border-radius: 4px !important;}&#8221;][vc_column_text]From the &#8220;<strong>Rule Information<\/strong>&#8221; section select &#8220;<strong>Fixed Commission<\/strong>&#8220;, then in the &#8220;<strong>Applies to the Following Items<\/strong>&#8221; table define each line:<\/p>\n<ul>\n<li><strong>Item Type:<\/strong> &#8220;<strong>Item<\/strong>&#8221; for specific products, &#8220;<strong>Category<\/strong>,&#8221; or &#8220;<strong>All Products.<\/strong>&#8220;<\/li>\n<li><strong>Elements:<\/strong> The required products or categories.<\/li>\n<li><strong>Commission:<\/strong> The commission value and its type, &#8220;<strong>Percentage<\/strong> <strong>%<\/strong>&#8221; or &#8220;<strong>Fixed Amount<\/strong>.&#8221;<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-140256\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_09h51_52.png\" alt=\"\" width=\"1663\" height=\"867\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_09h51_52.png 1663w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_09h51_52-300x156.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_09h51_52-1024x534.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_09h51_52-768x400.png 768w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_09h51_52-1536x801.png 1536w\" sizes=\"auto, (max-width: 1663px) 100vw, 1663px\" \/><\/p>\n<p><strong>Calculation Examples:<\/strong><\/p>\n<ul>\n<li>Percentage on all products: commission is 20% and the employee&#8217;s qualifying items total 5,000 \u2192 commission = 5,000 \u00d7 20% = 1,000.<\/li>\n<li>Percentage on specific items: commission is 15% on &#8220;Laptop,&#8221; invoice contains Laptop (1,000) and Mouse (50) \u2192 only the qualifying item counts: commission = 1,000 \u00d7 15% = 150.<\/li>\n<li>Fixed amount: commission is 50 per qualifying item; two invoices contain one qualifying &#8220;Laptop&#8221; \u2192 commission = 1 \u00d7 50 = 50.<\/li>\n<\/ul>\n<p>[\/vc_column_text][vc_custom_heading text=&#8221;Setting Up Tiered Commission&#8221; font_container=&#8221;tag:h2|font_size:28|text_align:center|color:%2304306b|line_height:2&#8243; use_theme_fonts=&#8221;yes&#8221; css=&#8221;.vc_custom_1783935901749{margin-left: 200px !important;background-color: #f6f9fc !important;border-radius: 4px !important;}&#8221;][vc_column_text]From the &#8220;Rule Information&#8221; section select &#8220;Tiered Commission&#8221; (selected by default), then:<\/p>\n<ol>\n<li>From the &#8220;<strong>Applies to the Following Items<\/strong>&#8221; table, define the included items and the contribution percentage for each line, this is the percentage of each invoice that counts toward target achievement (not the commission rate), defaulting to 100%.<\/li>\n<li>From the &#8220;<strong>Commission Tiers<\/strong>&#8221; section, specify the commission type: &#8220;<strong>Fixed Amount<\/strong>&#8221; or &#8220;<strong>Percentage of Achievement<\/strong>,&#8221; and the calculation type: &#8220;<strong>Linear<\/strong>,&#8221; &#8220;<strong>Highest<\/strong>,&#8221; or &#8220;<strong>Lowest<\/strong>.&#8221;<\/li>\n<li>From the &#8220;<strong>Tiers<\/strong>&#8221; table, add tiers, for each tier enter the target achievement percentage and the corresponding commission, with a maximum of 20 tiers and no duplicate percentages.<\/li>\n<\/ol>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-140258\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_09h58_03.png\" alt=\"\" width=\"1665\" height=\"864\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_09h58_03.png 1665w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_09h58_03-300x156.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_09h58_03-1024x531.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_09h58_03-768x399.png 768w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_09h58_03-1536x797.png 1536w\" sizes=\"auto, (max-width: 1665px) 100vw, 1665px\" \/><\/p>\n<p>Example illustrating the three calculation types, target 10,000, achievement 6,500 (65%), surrounding tiers: 60% \u2192 400 and 100% \u2192 2,000:<\/p>\n<ul>\n<li><strong>Linear<\/strong>: Proportional distribution between the two tiers: 400 + (2,000 \u2212 400) \u00d7 (65% \u2212 60%) \u00f7 (100% \u2212 60%) = 600.<\/li>\n<li><strong>Highest<\/strong>: Uses the next tier above the achievement: 2,000.<\/li>\n<li><strong>Lowest<\/strong>: Uses the last fully achieved tier: 400.<\/li>\n<\/ul>\n<p>[\/vc_column_text][vc_custom_heading text=&#8221;Assigning the Rule to Employees&#8221; font_container=&#8221;tag:h2|font_size:28|text_align:center|color:%2304306b|line_height:2&#8243; use_theme_fonts=&#8221;yes&#8221; css=&#8221;.vc_custom_1783936161353{margin-left: 200px !important;background-color: #f6f9fc !important;border-radius: 4px !important;}&#8221;][vc_column_text]From the &#8220;<strong>Assign To (select at least one)<\/strong>&#8221; section, specify the entities the rule applies to, you can combine: Employees (or &#8220;<strong>All Employees<\/strong>&#8220;), Roles, Departments, or Branches if the Branch feature is enabled. Then click &#8220;<strong>Save<\/strong>.&#8221;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-140266\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_10h24_38.png\" alt=\"\" width=\"1636\" height=\"867\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_10h24_38.png 1636w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_10h24_38-300x159.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_10h24_38-1024x543.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_10h24_38-768x407.png 768w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_10h24_38-1536x814.png 1536w\" sizes=\"auto, (max-width: 1636px) 100vw, 1636px\" \/>[\/vc_column_text][vc_message message_box_style=&#8221;3d&#8221; message_box_color=&#8221;alert-warning&#8221;]An entity that already has an active commission rule cannot be assigned. The system validates for conflicts upon saving and displays a message specifying the type of conflicting entity.[\/vc_message][vc_custom_heading text=&#8221;Sales Periods \u2014 Creating and Tracking&#8221; font_container=&#8221;tag:h2|font_size:28|text_align:center|color:%2304306b|line_height:2&#8243; use_theme_fonts=&#8221;yes&#8221; css=&#8221;.vc_custom_1783936257387{margin-left: 200px !important;background-color: #f6f9fc !important;border-radius: 4px !important;}&#8221;][vc_column_text]A sales period is the time frame in which employee sales accumulate and commission is calculated. To create a period:<\/p>\n<ol>\n<li>Click &#8220;<strong>Sales Periods<\/strong>,&#8221; then &#8220;<strong>Add<\/strong>.&#8221;<\/li>\n<li>Define the period range: Date (From) and Date (To).<\/li>\n<li>Define the included employees either through &#8220;<strong>Select by Rules<\/strong>&#8221; (with optional filtering by department, job title, and commission rule) or &#8220;<strong>Select Employees<\/strong>&#8221; to select them directly. Then click &#8220;<strong>Save<\/strong>.&#8221;<\/li>\n<\/ol>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-140268\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_10h26_27.png\" alt=\"\" width=\"1640\" height=\"868\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_10h26_27.png 1640w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_10h26_27-300x159.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_10h26_27-1024x542.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_10h26_27-768x406.png 768w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_10h26_27-1536x813.png 1536w\" sizes=\"auto, (max-width: 1640px) 100vw, 1640px\" \/><\/p>\n<p>After creation, the period details screen displays: the date range, target, a &#8220;<strong>Sales \/ Target<\/strong>&#8221; bar showing achievement percentage, a &#8220;<strong>Total Commission<\/strong>&#8221; card, the linked commission rule and its type, the commission tiers table for tiered rules, a &#8220;<strong>Sales Commissions<\/strong>&#8221; tab for period records, and an &#8220;<strong>Activity Log<\/strong>&#8221; tab.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-140272\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_10h27_50.png\" alt=\"\" width=\"1637\" height=\"866\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_10h27_50.png 1637w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_10h27_50-300x159.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_10h27_50-1024x542.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_10h27_50-768x406.png 768w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_10h27_50-1536x813.png 1536w\" sizes=\"auto, (max-width: 1637px) 100vw, 1637px\" \/>[\/vc_column_text][vc_custom_heading text=&#8221;How the System Calculates Achievement and Commission&#8221; font_container=&#8221;tag:h2|font_size:28|text_align:center|color:%2304306b|line_height:2&#8243; use_theme_fonts=&#8221;yes&#8221; css=&#8221;.vc_custom_1783938233606{margin-left: 200px !important;background-color: #f6f9fc !important;border-radius: 4px !important;}&#8221;][vc_column_text]In tiered rules, the system calculates each invoice&#8217;s contribution toward the target in two steps:<\/p>\n<ol>\n<li>Net Amount = Invoice Total \u2212 Discounts \u2212 VAT.<\/li>\n<li>Approved Amount = Net Amount \u00d7 Contribution Percentage \u2014 this is what is added to target achievement.<\/li>\n<\/ol>\n<p>Recalculation happens automatically with every transaction: new invoices increase achievement and commission, while refunds and credit notes deduct their approved amount from both \u2014 as long as the period remains open.<\/p>\n<blockquote><p>In tiered rules, commission appears as a dash &#8220;<strong>\u2014<\/strong>&#8221; in individual sales commission records with an explanatory tooltip on hover, because commission is calculated at the period level as a whole. The &#8220;<strong>Achievement Amount<\/strong>&#8221; column shows each transaction&#8217;s contribution toward the target.<\/p><\/blockquote>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-140275\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_10h30_12.png\" alt=\"\" width=\"1658\" height=\"864\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_10h30_12.png 1658w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_10h30_12-300x156.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_10h30_12-1024x534.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_10h30_12-768x400.png 768w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_10h30_12-1536x800.png 1536w\" sizes=\"auto, (max-width: 1658px) 100vw, 1658px\" \/>[\/vc_column_text][vc_custom_heading text=&#8221;Approving or Rejecting a Sales Period&#8221; font_container=&#8221;tag:h2|font_size:28|text_align:center|color:%2304306b|line_height:2&#8243; use_theme_fonts=&#8221;yes&#8221; css=&#8221;.vc_custom_1783938344881{margin-left: 200px !important;background-color: #f6f9fc !important;border-radius: 4px !important;}&#8221;][vc_column_text]After the period is complete and you have reviewed its results, from the top of the open period view screen:<\/p>\n<ul>\n<li>Click &#8220;<strong>Approve<\/strong>&#8221; to approve the period and lock the commission permanently. After approval, the system stops recalculating, and subsequent refunds have no effect on the approved period.<\/li>\n<li>Or click &#8220;<strong>Reject<\/strong>&#8221; if there are issues with the period results.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-140277\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_10h27_50\u062b\u0635.png\" alt=\"\" width=\"1637\" height=\"866\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_10h27_50\u062b\u0635.png 1637w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_10h27_50\u062b\u0635-300x159.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_10h27_50\u062b\u0635-1024x542.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_10h27_50\u062b\u0635-768x406.png 768w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2026\/07\/2026-07-13_10h27_50\u062b\u0635-1536x813.png 1536w\" sizes=\"auto, (max-width: 1637px) 100vw, 1637px\" \/><\/p>\n<blockquote><p>Review any expected refunds and credit notes before approving, any refund after approval will not reduce the calculated commission.<\/p><\/blockquote>\n<p>[\/vc_column_text][vc_message message_box_style=&#8221;3d&#8221; message_box_color=&#8221;alert-warning&#8221;]<\/p>\n<blockquote><p><strong>Important Notes<\/strong><\/p>\n<ul>\n<li>A commission rule cannot be deleted if sales commissions have been calculated through it, you can change its status to &#8220;<strong>Inactive<\/strong>&#8221; instead.<\/li>\n<li>Commission rule edits apply to future calculations only and do not affect previously calculated commissions.<\/li>\n<li>Commission rules created before the tiered commission feature was available all appear as &#8220;<strong>Fixed<\/strong>&#8221; type automatically with no effect on their data.<\/li>\n<li>Deactivated entities (employee or department) remain visible in the rule assignment but are ignored in future calculations.<\/li>\n<\/ul>\n<\/blockquote>\n<p>[\/vc_message][\/vc_column][\/vc_row][vc_row][vc_column][\/vc_column][\/vc_row]<\/p>\n<\/section>","protected":false},"author":17,"template":"","categories":[2160,2158,2159,2157],"tags":[],"class_list":["post-140336","user_manual","type-user_manual","status-publish","hentry","category-commission-rules","category-sales-commissions","category-sales-periods","category-sales-target-commissions"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>A Complete Guide to the Commission System - Daftra Knowledge Base<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/docs.daftra.com\/en\/user_manual\/a-complete-guide-to-the-commission-system\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A Complete Guide to the Commission System - Daftra Knowledge Base\" \/>\n<meta property=\"og:description\" content=\"[vc_row][vc_column][vc_column_text]The commission system allows you to fully manage sales employee commissions, from configuring commission rules and defining the calculation method (fixed commission per invoice or tiered commission tied to target achievement), to assigning rules to employees, departments, and roles, and tracking sales periods and approving final commissions. This guide covers the complete system workflow. 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