Understanding split commissions

Split commission refers to commissions that are split between salespeople. Made2Manage allows you to assign a specific salesperson and a specific commission rate with each sales order line items or sales order line item release.

For each product class that will be associated with a split commission, first set the Commissions general ledger account in the Product Classes (PRCL) page to either a COGS or expense account.

Commission can be set using a commission code, a code that reflects a specific commission rate. You can create different commission codes to reflect different sales commission rates. For example, create one commission code to use for sales made during peak sales times (such as summer), and another to use for sales made during times of the year when sales levels are lower (such as winter). Then assign to each salesperson a specific commission rate for each commission code.

You can also associate different salespeople with specific customer or prospect addresses. This lets you associate the appropriate salespeople with customers or prospects who maintain offices in more than one area. When you create a sales order and select the sold-to or ship-to address, the salesperson you associate with the address appears on the order.

Commissions become payable after they are approved for payment in the Commissions Payable (COMPAY) page. You can export commissions for internal salespeople to a Microsoft Excel spreadsheet, and you can post commissions for external salespeople to accounts receivable invoices.

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