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1. Open a new Commission Agreement Details record from the Commission Agreement Details tab on a Commission Agreements record.
2. From the list, select the Commission Plan Item that the Commission Agreement Details record describes.
3. To calculate commissions on the highest tier achieved, select the Calculate on Highest Tier Only option. To calculate commissions on a graduated rate scale, leave the option blank. See Graduated Rate Scale vs. Highest Tier Achievement Only for more information on the differences between highest tiers achieved and graduated rate scale options.
4. Populate the Commission Tiers tab of the Commission Agreement Details record with the desired commission tiers for this agreement. There are two ways to enter the commission tiers.
   
   • To enter a Commission Rate Scales record that has pre-defined tiers, enter the desired Commission Rate Scales record in the Rate Scale field.
   • The Commission Rate Scales Details Tiers records that are contained in the Rate Scale record selected populate the Commission Tiers tab of the Commission Agreement Details record.
   • If a Commission Rate Scales record is not used to populate the Commission Tiers tab of the Commission Agreement Detail record, the commission tiers may be created manually, as described below.
     • Enter the low and high amount range for a tier based on the product the base commission formula is using to calculate the commission. When creating multiple tiers, the upper bound of the first tier should be the same as the lower bound of the next tier.
     • Enter the commission rate percentage in the Commission Rate field. Enter the rate value as a whole number. For example, enter "10" not ".10" for ten percent.
     • To issue a fixed amount commission instead of a percentage of the sales for the commission tier, select the Use Absolute Amount option. After selecting the option, enter the fixed amount in the Commission Rate field. This amount is paid to the sales representative if they achieve this tier.
     • Select OK to close the tier record.
       
       
   • You can also edit a pre-defined rate scale tiers. See Overriding Rate Scale Tiers for more information on editing predefined rate scales.

   

5. Click OK to save and close the Commission Agreement Details record.
6. To create other Commission Agreement Details records for other products or product categories for the same sales representative, repeat the steps above as necessary.

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1. Select the Override Range option to edit and modify the range amounts.
2. Select the Override Rate option to edit or modify the commission rate percentage or use an absolute amount.
3. The overrides amounts and rates remain unless the Commission Rate Scales record is re-linked to the Commission Agreement's Commission Tier tab. To re-link the rate scale record, select the Clear button and then use the Find button to select the record.

4. Click OK to close the Commission Agreement Detail Tiers record.

   Please compare with original  

   $750.00 

   The method used for calculating a commission depends on the business intention of the commission plan.

   Graduated Rate Scale vs. Highest Tier Achievement Only
   Graduated Rate Scale vs. Highest Tier Achievement Only  Calculating a graduated rate scale commission on $5000.00 using the following commission tiers, results in a $450.00 commission. Tier From To Rate Base Qualified Commission 1 $0.00 $2,000.00 5.0% 2000.00 100.00 2 $2,000.00 $4,000.00 10.0% 2000.00 200.00 3 $4,000.00   15.0% 1000.00 150.00 $450.00 Calculating a commission on the same $5,000.00 using the highest tier achieved, results in a $750.00 commission.  Tier From To Rate Base Qualified Commission 1 $0.00 $2,000.00 5.0%     2 $2,000.00 $4,000.00 10.0%     3 $4,00.00     5000.00 750.00
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