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Problem understanding Commission calculation

PostPosted: Mon Sep 12, 2005 7:42 pm
by gaurav
Hi all
I am using compiere2.52e.On Commission Line tab of commission window, i am unable to understand the significance of Subtract Quantity, Multiplier Quantity, Subtract Amount, Multiplier Amount and how they are used to calculate Commission?
Please help.

Regards,
Gaurav

PostPosted: Wed Sep 14, 2005 7:56 am
by red1
Hi Gaurav,
Those u mentioned are arithmethical factors applied to the commission based amount as needed by the Client. This is in cases where NOT the whole base amount is used.

For example lets say that u as the SalesRep sold 10,000 last month. Your company may use the 10,000 as base amount for lets say 5% commission. So the SalesRep receives 500. But the Co. may say, u can only claim for sales above 1000, thus a substraction to the base = 9,000 and so u receive 450 instead.

Your claims may be again subjected to Product Qty sold. Lets say u sold 200 units of goods and the Co say subract 30 first, as the Co doesnt want to pay any commissions for the first 30 sold.

Multipler Qty and Multiplier Amt is the further and final comms factor u may apply to the figures. As in above example, u claiming 9,000 sales and the Multiplier Amt can be 5% commissions or 0.05. Or u can receive as a factor of Qty. For example again, using 170 sold units u can say apply 1.1 making it 170 + 17 = 187 as the basis of deriving your commissions.

Thus there are quite a wide range of formula possibilites for u to derive from so that u dont limit your commissions to a flat system and limited to only total amount or total qty sold.

If no one else gave a better answer then sign my http://red1.org/guestbook , if u havent done so ;)

regards
red1

PostPosted: Thu Sep 15, 2005 5:35 pm
by gaurav
Thanx Red1. Its now very much clear to me.
Thanx again