Choose the Basis of the Commission

To set commission basis:

1. In the Commission on field, choose the basis on which NetSuite awards commission.

   Your selection determines your choices in the per and Categorized by fields.

   Note:

   The fields on the commission schedule change as you make selections in other fields. For example, if you select Sales in the Commission on field and Quota in the Quota Type field, the per field appears and defaults to Period.

   Select one of the following:

   • Sales – Awards commission based on sales amounts

   • Alt. Sales Amount – Awards commission on alternate sales amounts

     To base commission on alternate sales amounts, you must first enable the Alternate Sales Amount (ASA) feature. For more information, see Alternate Sales Amounts.

   • YTD Quota – NetSuite bases commission on the percentage of the quota fulfilled for the year to date

   • Quota (Sales Amount) – Awards commission based on percentage of quota fulfilled in a period

   • YTD Quota (Alt. Sales Amount) – NetSuite bases commission on the percentage of the quotas fulfilled by ASA for the year to date

   • Quota (Alt. Sales Amount) – Awards commission based on percentage of alternate sales amount ASA quota fulfilled in a period

     For more information, see Alternate Sales Amounts.

   • Quantity – NetSuite bases commission on quantity of an item sold

   • Inventory Profitability – Awards a percentage based on the profitability of sales transactions

     Important:

     NetSuite bases commission calculations for inventory item profit on the last purchase price on the item record, not on the purchase order price.

   • Inventory Total Profit – Awards commission based on the total profit of sales

   • Custom Field – Displays the Custom Field and Quota Type fields

     To see custom fields, an administrator must go to Setup > Company > Enable Features (Administrator) > Employee subtab. Check the Commission on Custom Fields box, and then click Save.

     In the Custom Field list, select the custom transaction column field on which to base the commission. Custom transaction column fields must be defined by Type: Currency and can be based on any standard or custom currency amount field. NetSuite calculates commission on each transaction line. For more information, see Creating a Custom Field, Field Type Descriptions for Custom Fields, and Transaction Line Custom Field.

     In the Quota Type field, choose from the following options:

     • No Quota – Awards commission that is not based on quota

     • Quota – Awards commission based on the percentage of quota fulfilled in a period

     • YTD Quota – Awards commission based on the percentage of the quota fulfilled for the year to date

2. In the per field, select one of the following:

   • Period – Awards commission based on sales over a sales period

   • Transaction Total – Calculates commission based on the total transaction amount

   • Transaction Line Item – Awards commission based on transaction line items

   Important:

   Commission calculations are rounded when they are calculated, and then totaled, which can result in differences between expected and actual totals. If calculations are based upon a larger number of small transactions, then that difference can be larger. To minimize the impact of rounding, select Period or Transaction Total instead of Transaction Line Item.

   Note:

   The choices available in this field depend on the type of commission you are creating. For example, commission schedules based on quota require you to select Period in the per field.

3. If NetSuite calculates commission per period, select the length of your commission periods in the per list.

4. Check the Manager Schedule box to calculate commission based on the sales of subordinates as well as sales made directly by the manager.

   Manager schedules award commission only to sales people who supervise other sales reps.

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