Commission on Sales
Commission Systems That seam to work
- Drivers are paid a fixed amount for each toilet that is rental e.g. $5.00 to $25.00/unit this is point into a christmas acocunt and monthly update is given toeach driver. This usually brings in the family that is looking forward to the holiday gifts
- Commission based upon the first month only. After the first month everything is set to blank and sales credti is set as new accounts or orders are received. No re-ocurring commission.
- Sales commission that is for three years and goes to zero commission after the one, two or three years, This is typically used in grease and liquid waste markets
This needs to be carefully reviewed before implimneting a commission system. Some issues that should be checked include:
- No term, e.g. commission go on as long a customer may require you to pay even after employee quits or is fired
- Commission with no term may pay a sales person enough so they stop selling e.g. annutiy acffecty
- Most commission systems use an Excel spread sheet to hadle exceptions, which always arise.
- Commisions systems put an additional level of audit on both sales and recivables reporting if any are challenged through the dept of labor.
- Commisions paid on invoice require accural accounting practices e.g. Generation of negative invoces for invoice adjustments
Features in TAC to Handle Commision
TAC has a seried of features to track commissions
A sales credti code is etnered in referencce file 30. We recommend first, middle and last name intials of sales person. This code can then be tagged to several location to give credit for invoicing. This code can be added if blank by anyone, but can only be changed or deleted by somneone with admin persmissions.
The location for the code are:
- Site master = This code is then added to all line charges created for this site. When the line charges are created, you can override the code if required
- Rental Unit = This code is populated on the line charge created whenever a unit is invoiced
Line charge = This is used to calcualte the commission on a line item bases. The commission can be changed at this level by settign are rate code as
- supporting or note supporting a commission
- Percent of the assigned commision
Step by Step to enter codes and assign then print report
- Edit reference file 30 - Enter sales code for each person who will reeive commission and add percent for each year
- Edit reference file 15 - Charge or rate codes and check the box Commission Rate for all rate codes that a commission can be earned. IF a specific rate code does nto receive 100% commision you can enter a percent to the right of the check box. and it will be applied to reduce the amount available for commission calcualtions
- Choose a test site(s) and assign the sales credit on the site tab for one of the people receiving commision. IF you have more then one we recommend starting with two differnt codes so you can see how the reports break out the differnt codes