Overview
Some businesses add a percentage to items’ purchasing costs to account for external costs such as warehousing and repackaging fees. This added cost is called Salesman Cost and is used instead of the original cost when calculating a salesperson’s commission. It can be manually set for each product, allowing sales staff to price products based on this cost instead of the average or original cost.
For example:
- Let’s say the commission rate is 5%, and Salesman Cost is 4% over the Site Cost.
- If an order’s total is $200 and the item’s Site Cost is $100, that should equal a profit of $100.
- However, the salesman cost adds 4% to the item cost, which brings the cost up to $104.
- Therefore, the profit is adjusted to $96, and the salesman’s commission is $4.
Configuration
If you enable the Salesman Cost field:
- It will display on each product’s Purchasing page and will be updated automatically based on a percentage of the product’s Site Cost.
- It will be used as the product cost when you generate the Salesman Commission Report.
The Salesman Cost can be manually set for each product, allowing sales staff to price products based on this cost instead of the average or original cost. For this, you must disable the client setting Enable Salesman Cost __% and enable Allow Free Edit Salesman Cost. However, this setup disables the Salesman Commissions reporting functionality.
Enable and Set Salesman Cost
Follow these steps to enable and set the default Salesman Cost percentage:
- Go to Client Settings.
- Click the Advanced button to enable advanced settings.
- Select Purchasing.
- Search for “Salesman”.
- Check the Enable Salesman Cost box and set the Salesman Cost %.
- Click Save.
If you set the Salesman Cost lower than the Site Cost, Average Cost, or Last Cost, you will be warned when you save.
Set Employee Restrictions
To allow employees to see and edit the Salesman Cost, add the Salesman Cost View and Salesman Cost Edit employee roles to their profile.
To prevent regular employees (that don’t have Administrator, Client Admin, or Pricing Admin employee roles) from seeing any costs other than the Salesman cost:
- Go to Client Settings.
- Select UI on the left.
- Check the Hide Costs From Employees box.
- Click Save.
