The following sales commission calculation methods are used in your system.
Note The quantity shipped includes backordered items if the items are part of a kit.
Calculation to Adjust for Discount
Net Extended Amount = Extended Price x (100 – Discount Percentage Rate) / 100
Calculation of Standard Commission
Net Invoice Method
Commission Amount = Net Extended Amount x Commission Percentage Rate / 100
Gross Profit Method
Commission Amount = Commission Percentage Rate x (NET – Quantity Shipped x Unit Cost) / 100
Calculation of Percent of Price
Commission Amount = Quantity Shipped x Base Commission Amount x Unit of Measure Conversion Factor + (Commission Percentage Rate / 100) x Net Extended Amount
Calculation of Percent of Cost
Commission Amount = Quantity Shipped x Base Commission Amount x Unit of Measure Conversion Factor + (Commission Percentage Rate / 100) x Unit Cost x Quantity Shipped
Calculation of Percent of Gross Profit
Commission Amount = Quantity Shipped x Base Commission Amount x Unit of Measure Conversion Factor + (Commission Percentage Rate / 100) x (Net Extended Amount – Quantity Shipped x Unit Cost)
For more information, see Calculating Sales Commissions.
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