Sage 500 ERP supports the concept of commission plans, when Salesperson exceed the minimum sales threshold, they receive a commission this commission is paid to the Sales representatives as an incentive so they can generate more sales, ultimately providing businesses with a competitive edge in producing attributes that allow them to exceed their targets. It is calculated using Sage 500 ERP Setup Commission Plans.
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In a Commission Plan, a Commission Calculation Schedule is linked with a Commission Splits Schedule based on Commission Classes. When a Commission Plan is first created, no salesperson are assigned to it, and a single commission percentage is used to calculate the commission.
A commission is then allocated to the salesperson at the time of invoice entry. The commission plan can be assigned to any number of salespeople. A salesperson can be assigned to one or more commission plans and can split the calculated Commission or the sales amount credited for historical purposes with other salespeople in more complex situations.
Accounts Receivable Options must have the “Use Salesperson and Commission” option selected in order for Commission Plan Maintenance to be available. Commissions are calculated and paid in the home currency, in order to verify if an existing commission plan has been modified, the Invoice detail table for Pending Invoices must be checked. There will be a warning displayed if there are not yet posted invoices when trying to modify the commission plan. The user will not be able to modify the plan until all invoices are posted.
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