Difficulty Level: Intermediate Level AccountMate User
Version(s) Affected: AccountMate 7 for SQL and Express, AccountMate 6.5 for SQL and MSDE, AccountMate 6.5 for LAN
Module(s) Affected: AR, SO
Posting Date: 02/14/2007
DESCRIPTION
One strategic way to motivate a sales force is the implementation of commission-based compensation. Employers need information about which sales are subject to commissions so they can measure the performance of each salesperson and estimate the commissions that are due to them.
AccountMate offers two options for tracking sales. You may setup AccountMate to track commissionable sales on each inventory item sold; or on each sales order or invoice that is created.
SOLUTION
A. Setting Up the Commission Bases
To set up the basis for tracking the commissionable sales, perform the following steps:
1. Access the AR Module Setup function.
2. In the General (1) tab, select one of the two options in the Commissions section:
a. Based on Inventory If you select this option, AccountMate will track all commissionable sales for each inventory item sold based on the Commission Codes defined in the inventory records.
b. Based on SO / Invoice If you choose this option, the commissionable sales will be tracked based on the Commission Codes assigned to the sales orders and invoices created.
B. Creating and Maintaining Commission Codes
Commission Codes are records included in AccountMate’s Miscellaneous Codes. Miscellaneous Codes do not appear in the Maintenance menu; but rather, as a drill-down function in the windows where the code can be set up. Commission Codes can be set up within the following windows:
1. Inventory Maintenance window > Settings tab
Figure 1-1
2. Create Sales Order window > Information tab
Figure 1-2
3. Create Invoice window > Information tab
Figure 1-3
To access the Miscellaneous Maintenance window, simply click the Commission drill-down field label.
Figure 1-4
In the Miscellaneous Maintenance window (refer to Figure 1-4 above), you can add, edit, or delete commission codes in the grid. Unmark the Active checkbox of a corresponding Commission code if you want to restrict its usage.
C. Getting Started with the Feature
AccountMate will recognize and record revenue after an invoice has been created; thus, the commissionable sales will increase only after invoices are created. AccountMate has two ways of recording sales:
1. By creating, shipping, then invoicing an order in the Sales Order Module; or
2. By directly creating an invoice from the Accounts Receivable module.
Take note of the commission basis that you selected in the AR Module Setup function. If you selected the Based on Inventory option, the Commission field in the Create Sales Order / Create Invoice function window will be grayed-out and disabled. AccountMate will pick up the commission codes entered in the Inventory Maintenance function and increase the commissionable sales for each invoice created.
By contrast, if you selected the Based on SO / Invoice option the Commission field in the Inventory Maintenance will NOT be disabled; however, AccountMate will pick up the Commission Code assigned to the Sales Order / Invoice and increase the commissionable sales for each invoice created.
Amending or voiding invoices will directly affect the commissionable sales. Sales returns also attribute to a decrease in commissionable sales.
D. Generating the Commissionable Sales Report
To generate the report, access the AR Module’s Reports menu; then select the Commissionable Sales Report option under the Salespersons Report menu.
You can select the method by which the report should be sorted and the content to be included in the report. You can sort the report according to Commission Code, Salesperson# or Territory; depending upon your preference.
You can also filter the information that you want to be included in or excluded from the report. Salesperson#, Commission Code, Territory, Invoice #, Item #, Invoice Date, and Apply Date are the criteria available to you should you want to include all or a range of information from within your selected criterion.
If you want AccountMate to show the payment amounts in the Commissionable Amount column, mark the Compute commission based on payment checkbox.
If you selected the Based on SO / Invoice option in the AR Module Setup function, the report criteria window will display two additional filters.
1. Include Sales Tax in Invoice Total checkbox Marking this checkbox will add the sales tax amounts in the report’s Invoice Total column.
2. Freight Charge options You have the option to exclude freight, include freight in the Total Invoice Amount, or include freight in both Total Invoice Amount and Commissionable Amount.
The Commissionable Sales Report displays the invoices entered, total invoice amounts / item amounts, applied amounts (collected amounts) and commissionable amounts. The value in the Comm’ble Amt column will vary depending upon the preference that you selected in the report criteria window.
Many companies use a commission-based strategy to motivate their salespeople. AccountMate’s commissionable sales tracking feature can aid management in monitoring commissionable sales and in evaluating each salesperson’s performance.
This information is provided “AS IS” without warranty of any kind. AccountMate disclaims all warranties, either express or implied. In no event shall AccountMate be liable for any damages whatsoever including direct, indirect, incidental, consequential, loss of business profits, or special damages, even if AccountMate has been advised of the possibility of such damages.
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