Easy-Commission

Commission Formula

Commission Formula is used to create any user-defined expression for commission calculation process. The commission formula specifies the actual rate of the calculation to be used. These rates will be used for specific reps. The calculations for Commission rate and Commission amount are set here. Commission formula can be set as flat rate/amount: for example, 10% of sales can be set as commission/ $1000 can be set directly as commission amount. Commission Formula can also be set as conditional calculations. For example, If sales amount is more than $1000 then 12% of sales can be paid as commission else 10% of sales can be paid. It can also be set as tiered calculations. For example, if sales amount to date is more than $5000 then 15% of sales can be paid else 12% of sales can be paid. Generic formulae can be defined here and can be attached directly to commission plan to calculate commission.

The Commission Formula page contains information about the commission rate and the payout amount. The Commission Formula menu lets you quickly create, and view the commission formula. You can sort and filter Commission formula information using standard and custom list views provided below the Title in a page. In addition, this page lets you copy, and delete, edit the Commission formula information.

You can click Calculation Rules ? Commission Formula menu item to display the "Commission Formula" page. This page will list all the Formula Name, Links to Edit, Copy, Delete option.

Commission Formula Fields

Here is a description of the Commission Formula standard fields. Some of these fields may not be editable depending on your page layout.

Fields	Descriptions
Name	Name of the commission formula. E.g. Flat Rate.
Notes	Short description about the commission formula.
Category	Categorizes the commission formula. E.g. Flat commission
Commission percentage	Commission rate as a percentage. E.g. 10%
Commission flat amount	Commission rate as a flat amount. E.g. $250
Define commission rate	Provide the conditions to derive commission rate.
Expression	Allows you to provide excel like expression to derive the commission rate.
Lookup Matrix	Relevant details has to provided.
Attainment Matrix	Relevant details has to provided.
Build Formula(Build Commission rate formula)	Build your own expression to derive the commission payout for the sale. E.g. profit*Commission rate Expression will pay profit based commission.
Credit Amount * Commission Rate	Calculates amount to be paid using the standard formula 'Credit Amount * Commission Rate'.
Commission Rate	Commission rate as the amount to be paid. E.g. when commission rate is flat amount then that will be considered as commission payout.
Use Expression	Build your own expression to derive the commission payout for the sale. E.g. profitt * commission_rate Expression will pay profit based commission.
Owner	Owner of the record. Typically owner will be any of the user id. E.g.sample_randy@cellarstone.com. By default, Owner will have access to this record.

 

Adding new formula

The user can create new commission formula details such as Name, Commission Rate, and Payout Amount, etc. For example, to add new formula "Sample Flat Amount details, follow the steps given below:

1. Click Calculation Rules menu ? Commission Formula submenu item. The "Commission Formula" list page opens.

2. Click on Add New button to create a new formula. The "Commission Formula - Add" detail page opens.

3. Type the name of the commission formula in the Name text box. For example, type the name as "Sample Flat Amount".
4. Type the short notes about the commission formula in the Notes text area. For example, type the notes as "Pays 10% of sale when sale is more than $9000 else pays 8%".
5. Type the name of the Category for the commission formula in Category text box. E.g. Flat commission.
6. Select the Owner of the record. Typically Owner will be any of the user id. E.g.sample_randy@cellarstone.com. By default, Owner will have access to this record.
7. In the Commission Rate section, select any one of the options from the following:
• Commission Percent - If you select this option, then type the percentage in the Commission Percentage text box. For example, type the percentage as "50".
• Commission Flat Amount - If you select this option, then type the amount per transaction in the Commission Flat Amount text box. For example, type the flat amount as "1000".
• Define commission rate - If you select this option, then do the following:

a)       Click the expand  button next to Build Commission Rate Formula child page, to build a formula to set Commission Rate. This expands the Build Commission Rate Formula child page containing Operators, Type, Element Group, and Element. Refer the screen shot below:

b)       To set the commission rate to satisfy the condition "Pay 10% of sale when sale is greater than $9000 else pay 8% of the sale, use the Build Commission Rate Formula child page to add the formula as "if (sales_amount>9000, 10, 8)" in the Commission Rate text area, by following below steps:

                                                                                    i.      Click the "Function" in the Type list area to load the function element group.

                                                                                  ii.      In the Element Group list area, click "Logical" to load the functions such as IF, Find, Min, Max, etc.             

                                                                                 iii.      Click the function "IF" in the Element Group list area, to populate the syntax" If (condition, true_clause, false_clause)" in the Description and Commission Rate text areas.

                               

                                                                                 iv.      Now, click the "Variables" in the Type list area to load the variable element group.

                                                                                   v.      In the Element Group list area, click "General" to load the variables such as Sales Amount on Transaction, Gross Profit on Transaction, etc.

                                                                                 vi.      In the Commission Rate text area, highlight the 'condition' and Click the variable "Sales Amount on Transaction" in the Element Group list area, to populate the variable" sales_amount" in the Commission Rate text area.

                                                                                vii.      To add the greater than ">" symbol next to"sales_amount", just click the operator ">" next to "=" symbol provided in the Commission Rate section. Refer the screen shot below:

                                                                            

                                                                              viii.      Now, type the value as "9000" next to ">" symbol in the Commission Rate text area.

                                                                                ix.      Then, remove "true_clause", and replace with the value "10".

                                                                                  x.      To add the value in the false clause area of "IF" function, just remove "false_clause" and replace with the value"8".  You will find the commission rate as "if (sales_amount>9000, 10, 8)". 

8. In the Payout Amount section, select any one of the options from the following:
• Credit Amount * Commission Rate ? If you select this option, then multiplying the sales amount on transaction with Commission Rate (specified in this page) value and the multiplied value will be used as a payout amount for the rep. This is the default if Commission Rate type is "Commission Percent'.

Note: If Use Formula is selected in Commission Rate section, this option can be selected.

• Commission Rate- If you select this option, Commission Rate (specified in this page) value will be used as a commission amount for the rep. This is the default if Commission Rate Type is "Commission Flat Amount per transaction".

Note: If Use Formula is selected in Commission Rate section, this option can be selected.

• Use Formula - If Use Formula is selected in Commission Rate section, select this option and do the following:

a)       Click the expand  button next to Build Payout Amount Formula child page, to build a formula to set Payout Amount. This expands the Build Payout Amount Formula child page containing Operators, Type, Element Group, and Element. Refer the screen shot below:

b)       To set the Payout Amount  as" credit_amount * commission_rate / 100", use the Build Payout Amount  Formula child page to add the formula in the Payout Amount  text area, by following below steps:

                                                                  i.      Click the "Variables" in the Type list area to load the variable element group.

                                                                ii.      In the Element Group list area, click "General" to load the variables such as Sales Amount on Transaction, Gross Profit on Transaction, etc on Element list area.

                                                              iii.      In the Element list area, double-click the variable "Credit Amount" to display it in the Payout Amount text area. Refer the screen shot below:

                                               

                                                               iv.      To add asterisk "*" symbol next to"credit_amount", just click the operator "*" next to "-" symbol provided in the payout Amount section.

                                                          

                                                                v.      In the Element list area, double-click the variable "Commission Rate" to display it in the Payout Amount text area. Refer the screen shot below:

                                                          

                                                              vi.      To add divide "/" symbol next to" commission_rate", just click the operator "/" next to "*" symbol provided in the Payout Amount section

                                                             vii.      To add the value "100", just type in the value "100" in the Payout Amount text area.  You will find the Payout Amount as "credit_amount * commission_rate / 100".

7. Click Undo to cancel the last changes done in the Commission Rate/ Payout Amount text area.
8. Click Paste to paste the formula built using the Build Commission Rate / Payout Amount Formula section in the Commission Rate/ Payout Amount text area.
9. To check for the validity of expressions in commission rate or payout amount fields, click Check button provided in the "Commission Formula - Add" detail page.
10. To clear formula in Commission Rate/ Payout Amount text area, click Clear button.
11. Click Save to save the added formula details.

Note:

To update a commission formula details, click Edit  icon, and then change the fields you want to update.

To copy the commission formula details from an existing data, click Copy  icon.

To delete a commission formula detail, click Delete  icon provided on the list page.

To view the particular commission formula details, click on the required Formula Name link. You can also copy, delete and edit the readable mode by clicking the respective buttons provided on the top right of the "Commission Formula - view" page.

To sort the column alphabetically/ascending order, click on the required column header and click the column heading a second time, to reverse the sort order.

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