Sales Commission Calculation Methods

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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.

Expand/Collapse item  Calculation to Adjust for Discount

Net Extended Amount = Extended Price x (100 – Discount Percentage Rate) / 100

 

Expand or collapse item 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

 

Expand or collapse item 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

 

Expand or collapse item 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

 

Expand or collapse item 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.