A good Sales Commission scheme can be very effective in increasing sales. 


It can also help to direct efforts to sell certain products and ranges that you specifically want to push. 


Evopos has a very comprehensive commission system. Its features include:

  • Unlimited Commission schemes so you can set different schemes for different Salespersons.
  • Item commission to give varying commissions for different products. 
  • Individual Salesperson commision with multiple levels to give commission on all sales by a salesperson.   
  • Contact Area / Rep commission with multiple levels to give commission on all sales to a range of customers.
  • Ability to use a combination of the above three methods.


Commissions can be based on a percentage of the Sales, a percentage of the Profit, or as a fixed amount per item or when a level is reached.


Basing commision on Sales Turnover is often easier as it is more visible for the salesperson. Especially when the business prefers to keep costs and profits confidential.


Basing commission on Sales Profit can be very advantageous as the commission is based on the same financial playing field as the business.  It is especially suitable where the salesperson can negotiate pricing, as the salesperson is encouraged to make the correct balance between getting the sale and maintaining profitability to maximise the commission (just like the business manager / owner). 


Setting up Commissions

Commission Schemes are set up in Settings / System / Commission Schemes.


Any Item commission can be set up on individual stock item (Select Items / Stock Items / Commissions (under General tab)).


Once a Commission scheme has been setup it can then be allocated to any operator(s) in Settings / Operators-Staff / Commission Scheme.


Types of Commission

  • Item Commission 
  • Salesperson Sales Commission
  • Contact Area / Rep Sales Commission


Item Commission

Allow you to have different commissions for different stock items which allow you to target more profitable items or items you wish to clear.  


The commission is calculated as you sell the items and is stored in the Sales Transaction Lines records. This means the items have to be set up before the period you will be calculating.


The Item commission is set up on individual stock item (Select Items / Stock Items / Commissions (under General tab)).


You can set Item Commission on:

  • A percentage of the inclusive sale value when sold
  • A percentage of the net profit value when sold
  • A set amount (per item) when sold

This method enables you to select which items attract commission (and which items to exclude or reduce)


You can set the Item Commissions individually, or by bulk in Maintenance.


In the Commission Schemes settings you can set to include or exclude Item commissions. There are 3 options:

  • None - No Item Commission
  • Add - Add Item Commission to any Individual Salesperson Sales Commission and / or Customer Area / Rep commission
  • Higher - Will take the Higher of the Item commission and the Individual Salesperson (Area / Rep Commission will always be added)


If a commission has been incorrectly calculated you can edit the Item Commission for any sale in Accounts / Sales / Sales Lines. You can also change the Salesperson in the same place, which can also affect the Individual Salesperson Sales Commissions.


Salesperson Sales Commission

Salesperson Sales Commissions are calculated at the time the commission report is produced. This means you can also use this for older periods. It is based on the overall Sales or Profit of a Salesperson or Contact Area/Rep code. All items are treated equally.


The Commission can be based on percentage of Sales, a percentage of Profit, or can be a fixed amount.


It can be set in steps. For example:

  • From: 101 To: 1,500 = 10%
  • From: 1,501 To: 999,999 = 12%

So in this example if a Salesperson did 1,850 in sales the commission would be:

  • First 100 = 0
  • 100 to 1,500 = 1,400 + 10% = 140.00
  • 1,500 to 1,850 = 350 + 12% = 42.00
  • Commission: 140.00 + 42 = 182.00


If you do not want Salesperson Sales commissions then set the Rates on each level to zero.


If a Sale has been invoiced using the wrong Salesperson, you can change the Salesperson in Accounts / Sales / Sales Lines.  This may also affect the other commissions.


Contact Area / Rep Sales Commission

You can also calculate Commissions based on a Contact Area (Rep) Code. This is calculated at the time the commission report is produced which means you can also use this for older periods.


Area / Rep Commission is useful when a person looks after a group of customers eg: an Account manager for the area of Wales. 


The Commission can be based on percentage of Sales, a percentage of Profit, or can be a fixed amount.


It can be set in steps. For example:

  • From: 101 To: 1,500 = 10%
  • From: 1,501 To: 999,999 = 12%

So in this example if a Salesperson did 1,850 in sales the commission would be:

  • First 100 = 0
  • 100 to 1,500 = 1,400 + 10% = 140.00
  • 1,500 to 1,850 = 350 + 12% = 42.00
  • Commission: 140.00 + 42 = 182.00


If you do not want Area / Rep commissions then set the Rates on each level to zero. Also ensure the Area filed in the Contact record linked to the Operator is blank.


You can combine commissions, for example we could calculate on the combination of what is invoiced personally and what is sold over-all to that group of customers.


To configure which Area / Rep codes to include for a specific Operator we would enter the Area codes in the Area field of the Contact record linked to that operator, (for example A,D,F if the Area codes are A, D and F).


We would also need to set the Area code for each of the Customers that the Salesperson / Rep looks after.



Notes:

When you change the settings for a scheme you are changing it for every operator who is set to that scheme. If you want an operator to have different settings then create a new scheme (if an appropriate one does not already exist).


If you need to exclude items that are not profitable such as postage you either need to either base it on Profit (with a zero profit), or use the Item Commission and exclude the item(s) used for postage.


If you set multiple commissions bear in mind that commissions could be given multiple times. However, this can work well for when we want to encourage the Rep to invoice themselves. For example instead of giving 10% on Area sales you may give 7.5% on the Area sales plus 2.5% on the Sales Invoiced by them (or had the Salesperson set to them on a sale)


There is also an ‘Allocated To’ option in Contacts (under the Other tab) where you can allocate a Staff member to that Contact. At the moment it is primarily use in the CRM (Prospects) but it could be used in other scenarios.


See Commission on Items for more details on how to setup commissions on individual stock items.