Commission Calculation
Total Commission Received on BOM
The total commission an agent receives for an order is the sum of the commissions of each product sold in the BOM.
In the below example, the BOM contains two line items:
Adding the sum of the commissions on these two line items, the agent will receive a total commission total of $2.93 on these line item.
Commission Calculation At The Line Level
The commission calculated for a line item depends on the price range of a line item. For any price that is within this price range, the commission will be calculated
using the sliding scale.
Sliding Scale Commission uses the price points (i.e the min, tar and walk) in the price range to determine the commission based on the unit price. If the unit price of the line item falls between any two of the three price points (remember: the cust$ is not considered as a price point), then the commission
for that unit price will fall between the associated commissions of the two price points.
For example, if the unit price for the below example is $11, which falls between $10.55 and $11.65, your commission will then fall between the 5% commission of the min
and 8% of the target. In this case, it is 6.23%. So the closer you get to the target, the closer your commission comes to the target commission.
Similarly, if your unit price falls between the min and walk price, then your commission will fall between the min commission and walk commission.
Key Points:
What if the unit price falls below the walk?
In case, the unit price is less than the walk price, then the commission will almost always default to the lowest commission available in the price range including
the customer commission.
What if there is no walk price?
If there is no walk price and your unit price is less than min, then then the commission will default to the lowest available in the price range which could be the
min or the customer price (if the latter is available). If there is no customer price, then it will default to the min.
What if the unit price is above Target?
In this case, the commission will always default to the target commission, unless you are eligible to receive a premium commission on the order.
Premium Commission
When the 'sum' of a BOM (Bill-of-Material) is above the 'sum' of TAR (Target) price, then the difference between the 'sum' of the BOM over the 'sum' of TAR is
"Premium".
In the below image, the unit prices for the line items are at their respective targets - $22 and $11.65; which means, the total commission for this BOM is at the
target, which is $2.25.
Now, if the sum of the individual unit prices goes above the total target($2.25) - the commission will increase accordingly. The difference between the
increased commission and the target will be your premium.So, if you increase the unit price in line 1 from $22 to $25, notice that the commission for the line item has increased from
$2.25 to $5.25 - which means the premium you receive on this BOM will be $3 ($5.25-$2.25.)
By expanding the Calculator on the Line Items Tab, you are able to see a summary of Total Price, Total Target and Regular and
Premium Commissions.
Special Cases: Architectural Brand
For the product families in the architectural brand, the commission will be calculated in one of the three ways listed below:
- Regular commission calculation, where the price range has a defined min/tar/walk.
- 100% commission for items sold above target.
- 10% base commission for items sold at target.
Click on the hyper links for more details on the commission calculations.
Commission Calculation for Customer Price
The customer price listed for the item may or may not have a customer commission.
Customer Price does not have an associated customer commission
If the customer price does not have an associated commission, then the commission is calculated based on the sliding scale.
Customer Price has an associated commission
If the customer price has an associated commission, then that commission will always override any calculation made by the sliding scale.
