Creating a Commission Agreement Details Record

The Commission Agreements record contains further detailed agreement information on the Commission Agreement Details tab. This tab contains the Commission Agreement Details records. Most important in this detail record is the Commission Tiers tab, which contains information on the actual rates paid on sales of the related Commission Plan Item. Rate scale tiers in the Commission Tiers tab are added to the Commission Agreement Details record by manually creating new Commission Agreement Detail Tier records or by selecting a pre-defined Commission Rate Scales record that already has the tiers defined.

Once a Commission Rate Scales record is added to the Commission Agreement Details record, the tiers can be modified if the existing Commission Rate Scales record is not exactly what is required by the agreement. Follow these steps to create a Commission Agreement Details record:

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 the Graduated Rate Scale vs. Highest Tier Achievement Only table 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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