1. Marketing, Sales Force Automation, and Partners
  2. Partners
  3. Partner Commissions & Royalties
  4. Partner Commission Schedules
  5. Determining Commission Categorization and Eligibility

Determining Commission Categorization and Eligibility

You can categorize commission schedules by class, item, department, and location. Categorizing your commission schedule creates rows in your schedule matrix. For example, if you categorize your commission by class, NetSuite creates a row in your matrix for each class you track.

Eligible commission is defined as commission that is ready to be paid to a partner. You can choose to make commission eligible when orders are billed or paid. Alternatively, you can choose to have a percentage of the commission become eligible on collection, and the remainder eligible upon billing.

You can choose to have categorization apply to either payment or both attainment and payout. For more information on the Categorization applies to field, see Commission Attainment and Payout Categorization.

If you base commission on alternate sales amount (ASA) or ASA quotas, you can choose to have commission become eligible when orders are entered (bookings).

To set up schedule categorization and eligibility:

  1. In the Categorized by field, select class, item, department, or location.

    This field enables you to set commission criteria for different categories of revenue.

    To track departments, locations, or classes, an administrator can go to Setup > Company > Setup Tasks > Enable Features > Company.

  2. If your company preferences allow it, choose when commission payments are eligible to be paid for this schedule in the Eligible Amount field.

    The Eligible Amount field determines when commission is paid on this schedule:

    • Collections – Commission is earned when orders are paid.

    • Billing – Commission is earned when orders are billed or the commission is partially paid at billing and upon collections.

    • Bookings – Commission is earned when orders are entered. This option is available only on commission schedules based on alternate sales amounts. For more information, see Alternate Sales Amounts.

  3. If this schedule is based on ASA, choose how you want commission to become eligible in the ASA Collections Eligibility field:

    • First In – This option considers the amount paid on an order to first satisfy the ASA of a transaction, and then to satisfy commission eligibility.

    • Percent of Order – This option uses alternate sales amount, collections-based commission schedules to determine eligibility of calculated commissions. It is based on the proportion of cash collected against the sales order amount, rather than the ASA total.

    • Whichever Is Greater – This option uses the greater of the two amounts above to determine commission eligibility.

    • Whichever Is Less – This option uses the lesser of the two amounts above to determine commission eligibility.

    Consider the following example:

    A sales order is entered in the amount of $1000. The alternate sales amount for the order is $500.

    The partner on the order receives commission of 10% of ASA, making the calculated commission on the order $50.

    A payment of $400 is received on the order.

    • First In – The $400 payment counts towards the ASA, making 80% ($400/$500) or $40, eligible for commission payment.

    • Percent of Order – The $400 payment is 40% of the order total, so 40% or $20, of the calculated commission is eligible.

    • Whichever Is Greater – $40 is eligible because counting the payment towards the ASA gives a greater eligible amount.

    • Whichever Is Less – $20 is eligible because counting the payment as a percentage of the order total gives a smaller eligible amount.

    The default for this field is determined by the Default ASA Collections Eligibility Type preference at Setup > Sales > Sales Management > Commissions.

Set Commission Calculation Options

For more information and examples on these commission calculation options, see Commission Calculation Options.

  1. In the Calculation Scale field, select one of the following:

    • Flat Rate – The schedule calculates commission with a constant rate.

    • Marginal – The schedule is divided into brackets with different rates. Commission is awarded for each bracket at the rate you enter for that bracket.

    • Linear – The schedule is divided into brackets with different rates. Commission is awarded at the rate in the highest bracket fulfilled by the sales total.

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

    • Percentage – The schedule calculates commission using percentages.

    • Amount – The commission awards a specific currency amount.

  3. If this schedule is based on total profit or profitability and awards a percentage rate, select one of the following:

    • Sales Amount – The commission rate is applied to the net amount of the transactions.

    • Profit – The commission rate is applied to a sales transaction's profit.

Related Topics

General Notices