Calculate Commissions, Finalize Calculations

Explanation

When you enter a customer order line, the commission is automatically entered according to previously set rules. However, it is not calculated until the commission calculation is done. Depending on how you have designed the rules, the commission will be calculated either on order entry or once the invoice is prepared.

You have two options when calculating commissions:

• Update Calculated Commissions - All the selected (already) calculated commissions will be recalculated. This will be the case if some of the values have changed (quantity, price, etc.). Manually entered commission lines or system generated commission lines with manual additions will not be changed.
• Update All Commissions - Same as above, but also the manually entered commissions will be deleted and replaced by the recalculated values. This also applies for system generated commission lines with manual additions. The system will ask whether you really want to overwrite the manual commissions.

As stated above, there are a few differences in the handling of manually entered commission lines and system generated commission lines in the recalculation process.

If you make manual changes in a system generated commission line, that line will be handled in the following way:

         Changed lines will be marked via the line source “Modified”.

         “Modified” lines can contain both percentage and an amount.

         If choosing to recalculate the commissions via Update All Commissions, the modified line will be handled as a purely system generated line, i.e., no consideration will be taken to the manual modifications. The commission calculation will then purely be based on the basic data setup and the information found in the applicable commission agreement. The manual changes will be overwritten by system created data. The line source will in this case be changed back to “System”.

         When using Update Calculated Commissions, the manually entered values will be used as a basis for calculating commissions. This means that the values will not be overwritten by current data from the commission agreement. In this case, a “Modified” line will work in the same way as a manually entered line.

Apart from others an order line commission can also be fixed. Special conditions are applied when fixed commissions are used. Fixed order commission lines will neither be calculated nor considered in the recalculation process.

Also worth noting is the fact that the batch job recalculation launched from Calculate Commission, is always performed using the “Update Calculated” strategy, i.e., manual additions are left unchanged.

Upon calculating commissions, a check is performed of the Total Commission Amount for the order line to avoid that the total commission amount exceeds the total order value or invoiced value for the order line depending on the following:

         If there are only invoiced based commission lines, the Total Commission Amount is checked against the total invoiced amount for the order line.

         If there are only order based lines, the Total Commission Amount is checked against the total order amount for the order line.

         If there are both invoice based and order based commission lines, the Total Commission Amount is checked against the total order amount for the order line.

If Use Price Incl Tax check box is selected in the customer order, the commission calculation basis is the gross amount of the customer order line or the invoiced gross amount of the customer order line. If Use Price Incl Tax check box is not selected in the customer order, the commission calculation basis is the net amount of the customer order line or the invoice net amount of the customer order line.

Generally, you must run the commission calculation for all required sites, commission receiver groups, and/or commission receivers before you finalize the commissions. Once the commission calculation is finalized, you can no longer change or recalculate any affected commissions. You may have agreed with the commission receiver to pay commissions for a certain period of time. This means that you finalize the calculations for this period, e.g., you finalize January in February, if the agreed period is "month." On finalizing, the system will consider the calculation period of the commission receiver in the basic entry and the system will alert you if you finalize the calculations before the end of the calculation period agreed with the commission receiver.

If you, in spite of this, have finalized the commission calculation without a previous commission calculation, the "neglected" commissions will be transferred to the next commission period. They will not be lost. The same applies if, for some reason, the basis for calculation is changed after a commission has been finalized. An example would be if you create a credit invoice for an order with invoice based commissions that have been finalized. In this case a correction of the commission will be transferred to the next commission period. In these cases the system will generate a correction line to the next commission period.

For information about how to revoke a commission, see the Edit Order Line Commission activity description.

Prerequisites

• Information as to commission receivers, commission receiver groups and currency must have been entered in the customer order basic data entry, if applicable.
• At least one commission agreement must have been created.
• The customer order line must have been entered and saved.
• The commissions must be updated before they can be calculated.

System Effects

Commissions are calculated for the customer order line. The commissions can be viewed and edited in the Customer Order Line Commissions window.

Once the commission calculation is finalized, you can no longer change or recalculate any commissions.

Window

Customer Order
Calculate Commissions
Customer Order Line Commissions
Commissions per Receiver and Period
Commissions per Receiver and Periods

Related Window Descriptions

Customer Order
Customer Order/Order Lines
Calculate Commissions
Customer Order Line Commissions
Commissions per Receiver and Period
Commissions per Receiver and Periods

Procedure

To update the commissions (alternative 1):

1. Open the Customer Order window and select the appropriate customer order, either manually or by using the List of Values.
2. Go to the Order Line window and select the order line for which you want to update the commission.
3. Choose Order Line Commission in the Operations menu.
4. Select either Update Calculated Commissions or Update All Commissions in the Operations menu, whichever is applicable.

To update the commissions (alternative 2):

1. Open the Customer Order Line Commissions window and select the appropriate customer order, either manually or by using the List of Values.
2. Choose Calculate Commission in the Operations menu.
3. Select either Update Calculated Commissions or Update All Commissions in the Operations menu, whichever is applicable.

To finalize the calculations (alternative 1):

1. Open the Commissions per Receiver and Period window.
2. Select the appropriate commission number by using the List of Values.
3. Select Finalize Calculation in the Operations menu in the upper part of the window.

To finalize the calculations (alternative 2):

1. Open the Commissions per Receiver and Periods window.
2. Select and mark the appropriate commission number by using the List of Values.
3. Select Finalize Calculation in the Operations menu.

To calculate the commissions:

1. Open the Calculate Commissions window.
2. Select the site by using the List of Values.
3. If required, select the commission receiver group and/or the commission receiver by using the List of Values.
4. Enter the date through which the commissions should be calculated. Today's date is displayed by default.
5. Click OK.