Concept and Capabilities

The NEHANET Split Commissions module allows Manufacturers to manage their Splits Commission process efficiently and transparently. It automatically computes the Commission payable to the End (Design) Customer and Production Customer (Contract Manufacturer) Sales Rep. It also pulls the End Customer and Production Customer Region and Sales Manager to facilitate Commissions Reporting. Manufacturers can assign a Standard Commission Rate to their Reps. Commission Amount is calculated as a % of the Extended Cost from the corresponding POS records.

There is a system field called POS Commission % in the Accounts module. The default value for this system field is 2.5%. Users also have the ability to change the POS Commission % on a per Account basis. This field is also permission-able so the Administrator can decide who has the authority to change the Commission %.

Commission Amount is calculated as a % of the Extended Cost from the corresponding POS records.
The Distributor typically provides Invoice Number, Invoice Date, ,Part Number, Quantity, Cost, Resale Price. In addition, they provide Sold To Customer, this is typically a Contract Manufacturer. We use this information to identify the Production Region, Production Account Manager and Production Sales Rep from the Customer Master. In addition, some Distributors do provide End Customer – Who the Contract Manufacturer is building the product for. We use this information to identify the End Customer Region, End Customer Account Manager and End Customer Rep from the Customer Master.
For every invoice in the POS module, there are either one or two records in the Commission module depending on whether the End Customer is specified or not. The Commissions engine is configured to run as a daily job to compute the commissions for all POS data with Invoice date in the last 60 days.

Opportunity Commission – Coming soon:

The system further allows you to further tie Commission Splits to the Design and Production Region Manufacturer Reps for individual Opportunities for existing Customers. The following two fields are provided in the Opportunity module. Both the fields are permission-able so the Administrator can decide who has the authority to change the values.

  1. One field is at the Opportunity top level called POS Commission %. The default value for this system field is 5%.
  2. Second field is at the CM level called Split %. You can specify split amount in percentage that you wish to pay as Commission to the Rep for the CM (Sold To Customer). The default value is 10%

The system will automatically compute the split percentage for the End Customer Rep as 100 – sum of split percentage for all the CMs. When a POS record is reconciled to an End Customer, we will check if there is only one existing Opportunity for that End Customer and Part. In that case, we will auto-reconcile the POS to an Opportunity. If there are multiple Opportunities for that End Customer and Part, we will let the User manually reconcile it to an Opportunity. If the Distributor provides you with a DWID, you can input that during the POS upload process to reconcile it an an existing Opportunity.We will enhance the Commissions calculation engine to see if there is a reconciled Opportunity for a POS record and use the split % specified there or use the Account level % field to compute the Commission payable to the Rep.

The Opportunity Commission rules will be applied first, and then the Account Commission rules.