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8.1.3.5. Commissions & Overhead - 8.1.3.4. Resources
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8.1.3.5. Commissions & Overhead
Commissions & Overhead Tab
The Commissions & Overhead tab is where you create your commission payment structures for your sales reps. Currently, the commission structure can only be calculated on the Gross Profit of a proposal. Only one commission rule can be in effect for a sales rep at a time. As mentioned in the User & Groups section, a commission rule must be assigned to a sales rep in teh sales reps Users configuration. If no commission rule is assigned to a sales rep, then they will not appear in the Commissions Report.
Commission&Ovrhd.JPG
The image above displays several sample commission rules and overhead rules.
Adding a Commission Rule
To add a commission rule, click on the [Add New Commission Rule] link to open the Create A New Commission Rule window.
NewCommissionRule.JPG
There are several commission rule types that can be created and can be selected by clicking on the drop down selection arrow in the Rule Type selection box.
CommissionRuleTypes.JPG
| Commission Rule Types | Description |
|---|---|
| Generic Commission Rule | This rule can be applied to any sales rep. All proposals for this sales rep |
| Customer Commission Rule | This rule can be used to create a specific commission structure for a particular customer. After selecting this rule type, an input prompt field will appear to allow you to select the customer that you are creating the rule for. |
| GSA Commission Rule | If you have a specific set of commission rules for GSA customers that is different from your Generic Commission Rules, you can create that rule here. This rule will only be applied to proposals created for customer flagged as GSA customers in the customer database. |
| Commission Team | This rule type will allow you to create a commission team. Commission team typically consist of multiple sales reps (or any DealerChoice users in your company). |
Generic Commission Rule
GenericCommissionRule.JPG
| Generic Commission Rule Fields | Description |
|---|---|
| Commission Name * | Enter a name for your commission rule. The name entered here will appear in the Commission input prompt in the Users edit window (for assigning a commission rule to your sales reps). |
| Active? | If this box is checked, this commission rule will be applied in the Commission Report. If the box is not checked, the rule will not be applied. |
| Effective Date | Enter a date that the commission rule comes into effect. |
| Expiration Date | Enter a date that the commission rules expires. The commission rule will only be applied in the COmmission Report if the date the COmmission Report is run falls between the Effective and Expiration dates. |
| GP Margin Structure | Enter the amount of commission that is to be calculated for ranges of GP margins. You must define your structure for 100% of the GP margin. You will not see the Save Commission button until the rule is defined up to 100% GP. The commission rule can be set to calculate no commission, point for point, or at a rate that your specify. See the example below for more information. |
GP Margin Structure Example
Example 1:
From 0 to 9% GP, no commission will be calculated
From 9.01% to 25% GP, commission will be calculated at point for point
From 25.01% to 100% GP, commission will be calculated at 35% of the GP%
CommRuleDef1.JPG
The image above shows our commission rule being created for the first tier (0 to 9% GP then no commission). Notice that there is no Save Commission button. This is because the commission is not complete. You must define tiers for 100% of the GP margin before you can save your commission rule. This does not mean that you have to pay commission on GP margins up to 100%, you can select to pay no commission once you have reached the highest GP level that you will commission on.
Now we will add the second tier of our commission rule, which is from 9.01% to 25%, calculate commission at point for point. To enter the next tier, click on the [Next] link.
CommRuleDef2.JPG
We will click on the [Next] link again to enter our third and final commission tier and then click on the [Next] link.
CommRuleDef3.JPG
The end result is our completed commission rule as shown below and we now see the Save Commission and Delete Commission buttons. Click on the Save Commission button to save your commission rule.
CommExample1.JPG
The saved commission rule will now appear in the Commission Rule list.
Customer Commission Rule
CustomerCommissionRule.JPG
The Customer commission rule type option allows you to create a commission rule for a specific customer. You can create commission rules for as many different customers that you need. When a Customer commission rule exists, the Customer commission rule will be applied to all proposals for this customer. You do not have to assign this commission rule to your sales reps. Once the Customer commission rule is in effect, any proposals for this customer will use the customer specific commission rule for calculating commission.
After selecting the Customer Commission rule type, The Customer input prompt will appear under the Rule Type prompt allowing you to enter the first few characters of the customers name and selecting them from the selection list. Setup the remainder of the commission exactly the same way as you would a Generic Commission rule.
When the Commission Report is run, and if there are proposals for this customer that meet your commission report criteria, the specific customer commission rule will be used to calculate the commission for those proposals.
CustomerCommReport.JPG
The example above shows a proposal in the Commission Report for customer Test Customer 3. You can see that the Commission Rate field displays the 'Test Cust 3' commission rule has been used to calculate the commission amount.
GSA Commission Rule
GSACommissionRule.JPG
The GSA commission rule type option allows you to create a commission rule for customers flagged as a GSA customer in the Customer database. Only one GSA commission rule can be in effect at a time. When the Commission Report is run, and if there are proposals that meet your commission report criteria, the GSA commission rule will be used to calculate the commission on proposals for customers that are flagged as GSA customers. The commission rule name used to calculate the commission on each proposal in the Commission Report is always displayed so you know which rule is being used. You do not have to assign this commission rule to your sales reps. If the GSA commission rule is in effect, it will be automatically applied to proposals for customers that are flagged as GSA customers.
Commission Team Rule
CommissionTeamRule.JPG
The Commission Team rule type allows you to create a commission rule that includes multiple people. You can have as many people in the Commission Team as you want as long as the commission rates for all assigned to the commission team totals 100%. You will not be allowed to save the commission rule unless tiers are defined for up to 100% of the GP margin and the commission distribution between team members equals 100%. You can define as many Commission Teams as you need.
Entering the GP Margin Structure is exactly the same as for a Generic Commission rule. Once the Commission Team has been created and is in effect, the Commission Team rule name must be applied to any proposals that you want this rule to be used to calculate commissions on. Commission Teams are assigned to proposals on the Project Info tab, in the Commission Team input prompt field.
A Commission Team rule applied to a proposal will take precedence over any commission rule assigned to the designated Sales Rep on proposals. The Commission Report will display the proposal with the sales reps commission rate applied per the definition of the Commission Team commission rule.
The example below shows a Commission Team rule being created.
CommissionTeamAddUser.JPG
The GP Margin Structure has been defined and each member of the Commission Team has been assigned a percentage of the commission amount that will be calculated for each member based on the GP margin of the proposals that this Commission Team rule is applied to.
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