---
title: "Sales Commissions Examples"
canonical: "https://wiki.soft1.eu/space/SS5EN/12060182/Sales%20Commissions%20Examples"
format: markdown
---
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> Macro (toc)

1. ***Commission based on sales turnover, calculating Salesperson's direct Bonus***

The following commissions scaling has been set, based on Sales turnover which applies to all customers and items.

| **Turnover (Total Sales Value****)** | **Commission (Euros/month)** |
| --- | --- |
| 0 – 100.0000 | 0 |
| 145.500 | 500 |
| 154.230 | 700 |
| 162.960 | 1.000 |
| 174.600 | 1.200 |
| 999.999 | 1.500 |

 

In Human Resources and Contacts/ Employees/  Commissions tab the rule and the scaling would be as in the following picture: 

![image](media://4bf70c3c-9983-4e2b-a202-ed79e149170e)

Let's suppose that the salesperson in our example for a month has **174.069,43 € **turnover. Using  the job <Calculate Commissions>, his monthly turnover is updated and his commissions appear in Employee's Financial Data. 

- In case that  <Direct> has been set in commission calculation type, like in this example, then the commission will be calculated based on the commission percentage or based on the value which has to do with the calculated turnover. So, the salesperson's commission in our example will be **1.200**€.
- In case that <Scaling> has been set in commission calculation type, then the commission will be calculated using a scaling like in the following example:

1. ***Commission based on Turnover and percentage rate Bonus calculation ***

Let's suppose that the salesperson of the above example in this month has **174.069,43€**  sales turnover. In the rule data a percentage bonus commission has been set. Using <Calculate Commissions> , the gross monthly turnover is updated, and the calculated commission appears in Employee's Financial Data. 

![image](media://60651f65-0959-4a75-abfd-0e8882a6a415)

1. In case that in the rule the Calculation Type is <Direct> like in this example, then the commission will be calculated using this rate and/ or the value which corresponds to the sales turnover. So the salesperson's commission will be  **69.627,770**€.**(****174.069,43****x40/100)**
2. In case that in the rule the Calculation Type is <Scaling>, then the commission will be calculated using the particular scaling set in the rule, like in the following table:

 

| **From Turnover** | **To Turnover** | ** Commission  ****% ** | **Scaling Calculation** |
| --- | --- | --- | --- |
| 100.000 | 145.500 | 10 | **14.550 **(10% for the first 145.500) |
| 145.501 | 154.230 | 20 | **5.713,886** (20% for the rest  28.569,437) |
| 154.231 | 162.960 | 30 |  |
| 162.961 | 174.600 | 40 |  |
| 174.601 | 999.999 | 50 |  |
|  |  |  |  |
| **Total Commission:** |  |  | **20.263,89** |

If in the above example the salesperson in this month had **348.000 € **turnover, then his commission would be :

| **From Turnover** | **To Turnover   ** | ** Commission ****% ** | **Scaling Calculation** |
| --- | --- | --- | --- |
| 100.000 | 145.500 | 10 | **14.550 **(10% for the first 145.500. So 202.500 will be still left to calculate commissions =348.000-145.500) |
| 145.501 | 154.230 | 20 | **30.486** (20% for the first 154.230. So  48.270 will be still left to calculate commissions= 202.500 - 154.230) |
| 154.231 | 162.960 | 30 | **14.581 **(30% for the rest 48.270) |
| 162.961 | 174.600 | 40 |  |
| 174.601 | 999.999 | 50 |  |
|  |  |  |  |
| **Total Commission:** |  |  | **59,617** |

##  Commission based on days outstanding and on collections percentage %

###  Days outstanding (based on the invoice date) 

The following commissions scaling has been set by the sales manager based on Days Outstanding, which is calculated using the invoice date. This scaling is set for all customers and stock items.   

![image](media://4104aab0-1adf-4ed9-bfe8-9a4c14727e11)

Let's suppose that the salesperson of this example has sales of **1.012.482,50 € **on 22.09.16 (sales invoice date).

- On **22.09.16** a cash transaction of **600.760,50** €  is recorded (open item). This cash transaction is classified in the first scale (0-30 days) then the commission calculated for September is **17.422,05€ **(600.760,50 * 2,9/100)
- On **22.12.16**  a cheque is received for the rest amount that has to be paid for this sales document **411.722,00** € (open item). This  amount 411.722,00 € is classified in the third scale ( 61-350 days) then the commission calculated for December is  **2.058,61**€ (411.722,00 * 0,5/100)

 

### Days outstanding based on payment settlement terms

In case that in this same example a scale would be set based on Days outstanding which is also computing the settlement days, then commission would be calculated like in the following example:

Let's suppose that this exmple's salesperson has sales of  1.012.482,50 €  which is recorded on  22.09.16 (invoice date). On this sales document the settlement is: 

|  |  |  |
| --- | --- | --- |
| **Payment Date** | **Amount** | **Payment** |
| 22.09.16 | 600.760,50 | Cash |
| 21.11.16 | 411.722,00 | Bank Note |

 

- On **22.09.16** a cash transaction of **600.760,50** €  is recorded (open item). This cash transaction is classified in the first scale (0-30 days) then the commission calculated for September is **17.422,05€ **(600.760,50 * 2,9/100)
- On **22.11.16**  a cheque is received for the rest amount that has to be paid for this sales document **411.722,00** € (open item). This  amount 411.722,00 € is classified in the second scale (31-60 days) then the commission calculated for December is **2.882,054**€ (411.722,00 * 0,7/100)

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1. ***Sales Commission based on Item's Category percentage or bonus commission  ***

The company has set the following commissions scaling based on Item Categories sales value. In this case per Business unit and scaling on sales value sales commissions can be set up like: 

 

![image](media://93dc90b2-cad4-4a85-92d0-3be7f1afc97e)

 

Let's suppose that the salesperson of our example has turnover **13.521,6€** from Stock Items which are categorized in these Business Units

- Home Appliances: **892,000 **€
- Computers: **4.550,000 **€
- Professional Appliances: **8.229,600 **€

Using  <Calculate Commissions>, the following commission will be calculated:

- **8,920 **€ (892,00 * 1/100) commission for Home Appliances (892,000 €)
- **227,500 €** (4.550,00 * 5/100) commission for Computers (4.000,00 €)
- **561,480 €** (8.229,60 * 5/100 + 150) commission for Professional Appliances (8.229,600 €)

![image](media://1f76abb1-ac26-4720-a916-51303900a921)

 

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1. ***Sales Commissions based on Item Category, Quantity, and Redemption on Payment unit***

The company has set the following commissions scaling based on Items Category. 

 

![image](media://47df3692-2370-44aa-8af5-e8c7c9910692)

 

Let's suppose that the salesperson of this example in October has a sales document which includes: 2 computers and 6 consumables. Using <Calculate Commissions>, his commission is 150 €.  

- Computers: 2*15=30 €
- Consumables: 6*20=120 €

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1. ***Managers' commissions based on subordinates transactions ***

The company has set that the sales team's managers will get 10%, in 12-months. This commission will be calculated on the net monthly turnover of the subordinate salespersons and additional bonus in case Stock Items of particular commercial category will be sold. This scaling applies to all company's customers. In manager data the rules have to be set as in the pictures below. 

**10 % Commissions**

![image](media://222f6c0b-90b4-4342-bb31-0d564bcb4813)

**Based on Stock Items category**

![image](media://0834044a-032b-45a2-9a29-facee6ccb0c6)

 

In Employee data, a manager has to be set for each salesperson. In case that the salespersons at the end of the year have net turnover value of 139.000,00 €, 120.000 € of  which are Information Technology,  then the manager's commission will be calculated 14.900, 00 €, 1.000 € of which are calculated based on the 1st rule, and 13.900 € are calculated based on the 2nd rule. 

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