Setting Commission by Profit-Based Commissions

Introduction :

Once the net profit is determined, the commission for the salesperson can be calculated based on predefined commission rates or schemes. Instead of basing commissions solely on sales revenue, which doesn't account for profitability.

This approach ensures that commissions are aligned with the profitability of the company.

This guide provides a step-by-step approach to configuring commission schemes based on Profit.

1. Access Commission Setup

• Navigate to the “Commission” section

2. Create New Commission Scheme.

• Click on "Add New”

3. Enter Scheme Details:

• Scheme Name: Provide a name for the commission scheme to easily identify its purpose.
• Basis Type: Choose “Profit” from the dropdown menu. 
• Save.

4. Accessing to Commission Report:

• Navigate to “Sales” section 

• Apply filters to view the report by salesperson and profit.

• Next, click on the Profit amount. This action directs you to Profit & Loss report page.

You will see the Net profit / loss across the entire company.

7. Handling Losses:

If the Profit & Loss report shows a negative figure, indicating that the company is operating at a loss.

• According to standard practices, salesperson wouldn’t earn profit commission when the company is in a loss position.
• Therefore, the commission amount displayed for salespersons in commission report will be zero.

Related Guides on Commission Scheme:

If you want to set commission by Quantity item sold, please refer to this 

link for detailed guidance : Setting Commission Scheme by Quantity in Tier Basis

If you're unsure how to create commission scheme, please refer to this link for detailed guidance: 

How to create a commission scheme