Commission Calculation Type:

The commission for a user can be calculated based on two methods

1. Invoice value:  With this method, commissions are calculated based on the total invoice amount generated by the agent.
For instance, if an agent’s monthly invoice amount totals ₹5000 and the commission percentage is set at 10%, the user will receive ₹500 as commission.

2. Payment Received:  Alternatively, commissions can be calculated based on the actual payments received.
For instance:  if the agent’s monthly invoice amount is ₹5000 with a 10% commission rate, but only ₹2000 is received within the month, the user will receive ₹200 as commission. If the remaining $3000 is received in the following month, the user will receive an additional $300 as commission.

Calculating Commission Amount:

To See the commission amount, Go to Reports -> Sales Representative Report.

Select the User for which you want to see the commission amount.

On selecting it will show you the detailed summary of Total Sale, Total Sale Commission & Total Expense. Also, the table below lists all the transactions.

NOTE: Sales commission is calculated without shipping or tax. Sales commissions are from the sales of the items, not the overhead cost such as taxes, freight, shipping, handling, etc.

Commission payment:

After getting the commission amount, AC HOST have 2 ways to make payment for the commission.

Using expense

• Calculate the commission from the sales representative report and after paying the amount add it as an expense in Add Expense menu.
• In Add expense, select the Expense-For dropdown

Using HRM module

• Use the HRM module
• In the HR module, when creating payroll for a user, it will automatically include the sales commission.
• Sales commission will be shown as Payroll-Components so that the business owner and the user both know details of the commission.