Some business add a percentage to the purchasing cost of an item to account for external costs such as warehousing fees etc. This added percentage is calculated to create a special "Salesman Cost". The salesman cost will be used in calculating the salesman commission.
Salesman cost is a global setting in the Client Settings - Enable Salesman Cost _____
- Example, lets say that the commission rate is 5% and Salesman Cost is 4%. If the order total is $200 and the item cost is $100, that should equal a profit of $100. However, the salesman cost adds 4% to the item cost = $104. Therefore, the profit is adjusted to $96 and commission now = $4.
Salesman commission is calculated in a special report. Read more here