Evopos has a very comprehensive commission system:
•You can have as many Commission schemes as you like.
•You can have different Commission schemes for different Salespersons.
•You can set up Commission on Salesperson or on Contact Area / Rep codes or a combination of both.
•You can have Commission based on Sales, Profit, or a fixed amount.
•You can have Commissions based on General Sales/Profit or on specific items or a combination of both.
Setting up Commissions
Commission Schemes are set up in Settings / System / Commission Schemes.
Once a Commission scheme has been setup it can then be allocated to any operator(s) in Settings / Operators-Staff / Commission Scheme.
Item Commissions are set under each stock item
Types of Commission
There are two main types of Commission
•General Commission - Based on the overall Sales or Profit for a period. Calculated when reporting.
•Item Commission - Based on Sales or Profit of various stock items (where a Commission has been set). Calculated when invoiced.
General Commissions are calculated at the time the commission report is produced. This means you can also use this for older periods.
It is based on the overall Sales or Profit of a Salesperson or Contact Area/Rep code. All items are treated equally.
The Commission for Sales or Profit can be set in up to 4 steps. For example:
•From: 0 To: 100 = 0% (No Commission)
•From: 101 To: 1,500 = 10%
•From: 1,501 To: 999,999 = 12%
So in this example if a Salesperson did 1,850 in sales the commission would be:
•First 100 = 0
•100 to 1,500 = 1,400 + 10% = 140.00
•1,500 to 1,850 = 350 + 12% = 42.00
•Commission: 140.00 + 42 = 182.00
The Commission Method can be either a Percentage or Fixed Amounts
Based on individual stock items.
The commission is calculated as you sell the items and is stored in the Sales Transaction Lines records. This means it has to be set up before the period you will be calculating.
The Item commission is set up on individual stock item (Select Items / Stock Items / Commissions (under General tab)).
You can set Item Commission on:
•A percentage of the sale value when sold
•A percentage of the profit value when sold
•A set amount (per item) when sold
This method enables you to select which items attract commission (or which items to exclude)
You can edit this Item Commission in Accounts / Sales / Sales Lines. You can also edit the Salesperson here which will effect the General Commissions.
You can set the Item Commissions individually, or by bulk in Maintenance.
You can also set to include or exclude Item commissions. There are 3 options:
•No Item Commission
•Add Item Commission
•Higher of Commission (eg: If Item commission is higher than General commission it will only use the Item commission)
Based on Sales or Profit
Either Type of commission can be based on either Sales Turnover or Sales Profit.
Sales Turnover is often more visible for the salesperson. This is because they may not know or see the profit of an item.
However Sales Profit is often a better system, as it is based on the same financial benefits as the business. It is also normally a fairer system as commission is more where the profit is greater. It is especially suitable where the salesperson can negotiate pricing, as the salesperson would need to make the correct judgment on the balance between getting the sale and profitability to maximise the commission.
Based on a Contact Area Code
You can also calculate Commissions based on a Contact Area (Rep) Code. This is common if we want to base on a Representative / salesperson who looks after a group of customers. Or we may want to calculate commission on the combination of what is invoiced personally and what is sold over-all to that group of customers.
To configure this we can set up a Commission Scheme with a name format of AREA:X (Where X is the area code in question)
We can allocate a Salesperson to a Contact Area code by setting that Area code in the Contact record for that Salesperson.
We would also need to set the Area code for each of the Customers that the Salesperson looks after.
You can also set the Hourly Pay Options. There are 3 options:
•Hourly plus Commission
•Higher of the two
The Hourly Pay for each staff member is set in Settings / Operators-Staff / Average Hourly Cost (in the Pay tab).
The number of Hours can be set by Logging in at the beginning of the period and going into Log Time and selecting: Breaks, Lunch or Home
When you change the settings for a scheme you are changing it for every operator who is set to that scheme. If you want an operator to have different settings then create a new scheme (if an appropriate one does not already exist).
If you need to exclude items that are not profitable such as postage you either need to base it on Profit, or use the Item Commission.
If you want to do Salesperson commission and Area/Rep commission bear in mind commission could be given twice for the same sale. However, this can work well for when we want to encourage the Rep to invoice themselves. For example instead of giving 10% you may give 7.5% on the Area sales plus 2.5% on the Sales Invoiced by them (or had the Salesperson set to them on a sale)
There is also an ‘Allocated To’ option in Contacts (under the Other tab) where you can allocate a Staff member to that Contact. At the moment it is primarily use in the CRM (Prospects) but it could be used in other scenarios.
See Commission on Items for more details on how to setup commissions on individual stock items