The Sales Rep Commission report calculates a sales rep’s commission. A sales rep can be added to a manually created order.
The report has 2 sales rep fields:
- Sales Rep Commission – A percentage set per employee. The sales rep profit is calculated against the order profit:
- Example: Commission rate is 5%. If the order total is $200 with a profit of $100, the commission = $5.
- Sales Rep Cost – Some businesses 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 Sales Rep Cost. The sales rep cost will be used in calculating the commission:
- Example: The commission rate is 5% and Sales Rep Cost is 4%. If the order total is $200 and the item cost is $100, that should equal a profit of $100. However, the Sales Rep Cost adds 4% to the item cost = $104. Therefore, the profit is adjusted to $96 and commission = $4.
The report shows commission per transaction separately (debit and credits).
Profit Calculation: (Payments – Shipping Total – Handling Fee – Insurance – Gift Wrap – Tax – Refunds) – ((Items Cost * @salesmancostPercent) + Items Cost)
Sales Rep Profit Calculation:
- Calculation if one sales rep on the order: Profit (above) * Sales Man Commission (from the employee setting)
- Calculation if 2 sales reps on the order: The same equation is applied and the sales rep profit is divided in half