Commission Module

This article will explain how to set up sales representatives, customers, and item commission levels in Point of Rental. It is divided into two sections: the Standard Commission Module, which comes standard with Expert and Elite software, and the Enhanced version, which is available for purchase as an add-on.

Topics included in this article

• Standard Commission Module

• Enhanced Commission Module

• Creating Customer Configuration Levels

• Creating Item Commission Levels

• Reports

Standard Commission Module

The Standard Commission Module calculates commissions based on straightforward criteria and applies a fixed percentage based upon income bucket, such as “X% of rental income” for sales reps.

Getting There

Expert: Configuration > System Configurations > Sales Reps
Elite: Gear icon > App Configurations > System Configurations > Sales Reps

Enter the base commission percentage in the appropriate fields. Then, set up the Aging fields. The Aging percentage is used to decrease the sales representative’s commission the longer it takes for the contract to be paid in full. In the example below, the sales rep will get the full commission percentage rate if a rental contract is paid in full in less than 30 days. If the contract is paid within 31-60 days, the sales rep will receive 75% of the original commission, and so on.

Enhanced Commission Module

It is often necessary to have varying commission schemes for sales reps to accommodate business goals or handle negotiated commission plans by sales reps. This can be used to persuade salespeople to sell specific products over others for promotional purposes, adjust commission payouts based on customer attributes (corporate customer, new customer, 2-year customer, etc.), or pay varying commission percentages by sales rep. The Enhanced Commission Module allows item commission levels to be created and assigned at the category or item level and then assigned to sales reps, where exceptions can be set for commission calculations. Customer commission levels can be created and assigned to specific customers to adjust overall commission payouts.

Creating Customer Commission Levels

Here's how to get there:

Expert: Configuration > Customer Configurations > Customer Commission Level
Elite: Gear icon > App Configurations > Customer Configurations > Customer Commission Level

1. Create different levels for different types, as illustrated below. Double-click in each field and enter a percentage.
   
       
2. Customer Commission Levels can be assigned to Customer Pricing Types or individual accounts, as illustrated below. The percentage entered will adjust to the overall commission payout.

Customer Pricing Type:

Customer File:

Use Case Example:

A sales representative may earn a reduced commission level from a long-standing, well-established customer compared to a brand-new customer because it doesn’t require the sales rep to work as hard to get their business. So, if a sales rep is set up for a 10% standard base commission level, based on the customer type (as pictured above), they will get 80% of the 10% if it’s a “Corporate Account” and 50% of the 10% if it’s a “House Account.”

Creating Item Commission Levels
   

Here's how to get there:

Expert: Configuration > Item Configuration > Item Commission Level
Elite: Gear icon > App Configurations > Item Configurations > Item Commission Level
        

1. Click ‘Add’ to create a new level. Item Commission Levels could be set up to handle specific categories so that you can manage the percentage payout for lower utilization items, item levels as seen below, or any designation you choose. 
   
   
   Note: After this step, you can assign a specific commission level to an item category and/or to an individual item. Step 2 below shows how to do both.
      
2. Go to Configuration > Item Configuration > Item Categories to assign the appropriate commission level to each item category.
   
   
   OR
   
   Go to File Maintenance > Item File > Search for the item. Then, when the Record Detail window opens, go to Functions (top left corner of the Record Detail) > Modify > Income tab
   
         
   Click the drop-down to set a commission level on the individual item.
   
          
3. In Configuration > System Configuration > Sales Rep, each item’s commission level can be defined under Exceptions. This allows the user to define commission percentages for the varying Item Commission Levels by sales rep.
       
4. Click the Exceptions button.
   
      
5. Click in each field and enter the percentage of commission to be paid for the corresponding level and type of revenue (Rent, Sale, Asset, etc.). Select OK when done.
   
             

Note: If an exception is not defined for a sales rep, the standard commission levels will be used in the commission calculations. If you only want to pay on the exceptions, you would set the standard commission percentages to zero.

Reports

For both the Standard Commission Module and the Enhanced version, a commission report can be run for any time period.

Note: The “Enhanced Report” can only be run if you’ve purchased the Enhanced version.

To get there:

• Expert: Accounting Reports > Sales Rep Reports Menu > Commission Report.
• Elite: Reports icon from right menu > Search for Commission Report (click the star to save it as a favorite)

Standard vs. Enhanced Reporting

• Standard Reporting comes with Expert and Elite and allows you to print Details or a Summary for commissions earned using the base commission percentages in the revenue buckets on the sales rep file.
• Print Details shows all transactions, the dollar amount, and the commission for each one.
• Print Summary shows each salesperson, as well as the revenue and commission that they’ve earned. Please note that the print summary only reports the commission based on % and does not include aging in the calculations.

Choose the accounting method:

• Accrual Accounting reports on any transaction where you have recognized the revenue and does not require it to be paid in full.

• Cash Accounting reports any transaction that has been paid in full. This could include reservations, open, and completed contracts. 
   

The example report below shows the base commission rates for Rent, Sale, Damage Waiver (DW), and Asset with aging percentages included. The sales rep's overall commission could be reduced depending on when the contract is paid in full.

“Enhanced Reporting" can only be run if the Enhanced version has been purchased as an add-on to your software.

This report shows what Standard Reporting shows, plus item levels, and will only be accurate with live data after an End of Day has been completed.

Choose the accounting method:

• Accrual Accounting reports on any transaction where you have recognized the revenue and does not require it to be paid in full.

• Cash Accounting reports any transaction that has been paid in full. This could include reservations, open, and completed contracts. 
   
  
  
   

Note: Commission totals will show accurately in training mode.
 

Note: The commission module does not calculate retroactively.