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Commission Calculation

PrismERP automates the calculation of sales commissions based on predefined commission rates and actual sales data. This feature ensures accurate, timely, and transparent commission payouts aligned with employee performance and company policies. Commission Calculation uses the configured commission plans, achievement levels, and sales transactions to compute the payable commission amounts for sales employees. It supports various commission models, including flat rates, percentages, graduated scales, and achievement-based tiers.

How Commission Calculation Works​

  1. Input Data

    • Sales data from orders, invoices, or collections.
    • Commission rates and rules defined in commission plans.
    • Achievement levels linked to sales targets.

  2. Processing

    • Matches sales transactions to employees and commission plans.
    • Calculates commission based on the model selected (e.g., revenue, gross margin).
    • Applies commission rates according to the sales achievement tiers or fixed rates.
    • Aggregates commission amounts over the specified period (monthly, quarterly, etc.).

  3. Output

    • Generates commission summaries for each employee.
    • Prepares data for payment generation and voucher creation.
    • Updates employee commission records in the system.

Commission Calculation Types​

  • Flat Rate Commission: Fixed monetary amount per sale or product.

  • Percentage Commission: A percentage of the sales value or revenue.

  • Graduated Commission: Commission rates that increase with higher sales volumes or achievement levels.

  • Achievement-Based Commission: Commissions calculated based on the percentage of target achievement.

Steps to Perform Commission Calculation​

  1. Ensure commission plans and achievement setups are correctly configured.

  2. Confirm that sales transactions and achievements are recorded and up to date.

  3. Navigate to Generate Commission Calculation

  4. Select the commission plan and period for which the commission should be calculated.

  5. Click Calculate to initiate the process.

  6. Review the calculated commissions in the summary report.

  7. Proceed to generate payments or vouchers based on the calculated commissions.

Reporting​

PrismERP provides detailed commission reports showing:

  • Employee-wise commission earned
  • Commission breakdown by product, sales, or collection
  • Comparison of targets vs. achievements
  • Payment status of commissions

For visual guides and detailed screenshots, please refer to the PrismERP Sales Commission module.