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Managing Commissions and Royalties

The primary intent of commissions is for an organization to encourage its sales representative's behavior to benefit the organization's sales. Since incentives vary from organization to organization or even from period to period, the commission base formula provides the flexibility to construct various base formulas on specific commission sources and various rate scales to reward their sales forces.

The Commission Plans service is at the top level of the Commission and Royalty Management application and contains administrative details about commissions. See Setting Up Commission and Royalty Management for information on setting up the Commission Sources records and the Commission Base Formula records. These two items are required to be set up before Commission Plans records can be created and commissions processed for payment.

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