sales commission quick guide ls retail nav 6.3

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Sales Commission

Quick Guide

LS Retail NAV 6.3

Author : UA/GL/AOB/AG Date : February 29, 2012

LS Retail ehf. Hofdatun 2, 105 Reykjavík, Iceland

Tel: +354 414 5700 Fax: +354 571 2728

Contents

1 Introduction ....................................................................................................................... 1 1.1 Functional Overview ................................................................................................ 1 1.2 Definitions, Acronyms and Abbreviations ................................................................ 3

2 Preparation ........................................................................................................................ 4 2.1 Retail Setup .............................................................................................................. 4 2.2 Staff Settings ............................................................................................................ 5 2.3 Retail Salesperson Setup ........................................................................................ 6 2.4 Default Commission Group for the Store ................................................................. 6

3 Forms and fields ............................................................................................................... 7 3.1 Commission Rule ..................................................................................................... 7 3.2 Commission Salesperson Group ........................................................................... 11 3.3 Commission Sales Periods .................................................................................... 12 3.4 Retail Salesperson ................................................................................................. 12 3.5 Test Commission ................................................................................................... 13

4 Functions and Commands ............................................................................................ 15 4.1 Generating Commission Entries ............................................................................ 15 4.2 POS Commands .................................................................................................... 16 4.3 Retail Sales Order and Retail Sales Return Order ................................................ 17 4.4 POS Sales .............................................................................................................. 17

5 Use Cases ....................................................................................................................... 18 5.1 Transactions, specific percentage and amount ..................................................... 18 5.2 Transactions, Line Specific .................................................................................... 19 5.3 Sales Target ........................................................................................................... 20 5.4 View earned commission by period ....................................................................... 22 5.5 End of Period ......................................................................................................... 23 5.6 Post Commission to Account ................................................................................. 24

Sales Commission - Quick Guide

Chapter 1 - Introduction 1

1 Introduction

The purpose of this document is to give a quick overview of the Sales Commission functionality in LS Retail NAV 6.3. It focuses on setup and gives information on how to use the sales commission functions. This quick guide describes all fields in relevant forms, excluding those fields that are used frequently in standard NAV or LS Retail NAV and should be familiar to the user. If the same field is used in several forms it is described only in the first form in each chapter.

1.1 Functional Overview

When determining whether a Sales Commission should be calculated, the system looks at the Item, the Date of Sale, the Store and the Customer, if a customer is assigned in the transaction. The Sales Commission can be based on either the item sold, the amount of the transaction that can also be dependent on Items or by the discount offer triggered. It is possible to exclude items, periodic discounts and sales persons from the commission calculations. Items can be excluded by Division, Item Category, Product Group, Special Group or by specifying a particular Item. In order to calculate Sales Commission for POS staff, the staff needs to be defined beforehand as Sales Person or Both in the Employment type field on the Staff Card, and a Sales Person code needs to be assigned. More than one Commission Rule can apply to a sale, in which case the Commission Rule with the lowest Priority is selected.



1.1.1 Sales Commission

The Sales Commission module is located in LS Retail – BackOffice

1.1.2 Sales commission entries

Sales commission entries can only be generated from:

POS Sales

Retail Sales Order and Retail Sales Return Order

1.1.3 Items valid for commission calculcation are selected by:

All Items

Periodic Discount

Division

Item Category

Product Group

Item

Special Group

Each of these can also be excluded in the Rule.



1.1.4 Salespersons are selected by

Salesperson – the Salesperson assigned to the sale benefits

Account Manager – the Account Manager benefits

Store Manager – the Store Manager benefits

Commission Salesperson Group - all Salespersons in the selected Commission

Salesperson Group benefit

Store Commission Group – all Salespersons in the Default Commission Group as

selected on the Store Card benefit

If the Commission Salesperson Group or the Store Commission Group is selected, the Multi-Person Option can be set to either Each, where each salesperson in the group will get the Value, or Total, where the Value is divided between the salespersons in the group.

1.1.5 Type of commission

Sales commission can be set up to work with two different type methods called Transaction and Sales Target.

Transaction:

The Sales Commission is based on a percentage or a fixed amount of the sales

amount for each sales line in the transaction. This type can also be defined to be Line

Specific, where calculation is set to be different depending on the lines sold that is not

general for the rule

Sales Target:

The Sales Commission is based on a percentage or a fixed amount based on the

total sales amount over the selected Commission Sales period.

1.1.6 Validation Period

Sales Commission is setup for a Validation Period which can be unlimited or setup with date restrictions.

1.2 Definitions, Acronyms and Abbreviations

Term Description

Commission Rule The rule that determines if and how sales commission is to be

calculated

Commission Salesperson

Group

A pre-defined group of salespersons that benefit from the sale of

Items defined by the Commission Rule

Commission Sales Target The defined sales amount needed in order to get the defined

Commission amount or percentage.

Commission Sales Period The defined period within which the sale shall take place to be

considered to count into given Commission Sales Target. Also used

to calculate total commission per Sales Person for payroll, customer

or Vendor posting.


Chapter 2 - Preparation 4

2 Preparation

2.1 Retail Setup

The first thing to in setting up Sales Commission is to configure the setup parameters. To do this go to LS Retail – BackOffice, Setup, Retail Setup and select the Posting tab. The fields for Sales Commission are Commission Active, Calculate in Statement Posting, Calculate in Sales posting, Exclude Returns, Bal. Acc. Type and Bal. Acc. No.

The Sales Commission fields in Retail Setup:

Commission Active: This field needs to be checked for Sales Commission to be

active.

Calculate in Statem. Posting. This applies to POS Transactions with Sales

Commission. When checked Sales Commission entries are generated for the POS

transactions at the same time the Back Office Statement is posted. When unchecked

commission can be calculated manually for each posted statement.

Calculate in Sales Posting: This applies to Retail Sales Order and Retail Sales

Return Order with Sales Commission. When checked Sales Commission entries are

generated at the same time the Sales Order is posted. When unchecked commission

can be calculated manually for each posted Sales Order.

Exclude Credit Sales: Retail Sales Return Order and POS return sales are excluded

from the commission calculation.

Bal. Acc. Type with the options:

o G/L Account

o Bank Account

Bal Acc. No.: This needs to be filled out for function Create General Journal. This

function creates a General Journal with the totals of Sales Commission for a closed

Sales Commission period. The type of accounts for this field depends on the value

chosen in field Bal. Acc. Type

Example of G/L Account List:



2.2 Staff Settings

Sales Persons that are entitled for Sales Commission have to be configured correctly on the staff card. For every sales person who is going to be able to receive sales commission do the following:

Go to LS Retail – POS, Setup, Staff, Staff Card

Select the Sales Person Id

For field Employment Type select Sales Person or Both

The sales person has to be either of type Sales Person or Both

o Cashier is for staff id which works on the POS.

o Sales Person cannot login to the POS but can be connected to the sale as

sales person. Sales person can as well be linked to the Retail Sales Order

o Both has the behavior of Cashier and Sales Person

For field Sales Person select the sales person id for the active Staff Id



2.3 Retail Salesperson Setup

Each salesperson receives commission either as customer or vendor. See: LS Retail – BackOffice, Sales Commission, Commission Sales Periods, Posting tab. This is further described later in this document.

2.4 Default Commission Group for the Store

It possible to define a default Commission Group of Sales Persons for each Store. To do this:

Select LS Retail – BackOffice, Setup, Store Card

Select the Store

Select Tab Management

For field Default Commission Group select a value from the Commission Salesperson

Group List. More information about Commission Salesperson Group List is in chapter

3.2 Commission Salesperson Group


Chapter 3 - Forms and fields 7

3 Forms and fields

3.1 Commission Rule

The Commission Rule form is used to define the Commission Rules. To select it go to LS Retail – BackOffice, Sales Commission, Commission Rule

The Commission Rule form contains sub-forms: General, Validation, Salespersons and Sales Targets settings. The lower part of the form includes the lines for the rule where the conditions for the items which generate the rule are set.

3.1.1 The General Tab



Code: A unique id which is chosen by the user. An alphanumeric field, 10 digits

long.

Description: Description for the Sales commission Rule

Calculation Type: Controls the behavior for the sales commission calculation

o Transaction: Works for the sales line individually

o Sales Target: Sums up for the sales of the item in the rule per sales person

within the sales commission period. Sales Target can have targets where the

commission fees can be different for every sales target

Line Specific: Only valid for rules of Transaction type. When this is active then

the sales commission calculation is set up for every line of the rule. When this is

not active the commission calculation is set up on the Salesperson tab and is

general for the rule.

Priority: The lower the number the higher priority the rule has. The rule’s priority

decides the priority of the rule compared with other existing rules.

Status: Can be Enabled or Disenabled. The button Enable/Disable controls this

field. A rule is not active unless it is in status Enabled.

3.1.2 The Validation Tab

Validation Period: Select a value for this field from the Validation Period Setup List.

This filed must have a valid value for a commission rule to be enabled

Validation Period Description: Automatically filled out with the Validation Period

value

Period Starting Date and Period Ending Date: Automatically filled out with the

Validation Period value. When these fields are empty then there is no time limit set

Store Type: A selection field with values All, Store Group, Store

Store Type Value: Works with field Store Type. This is to decide for which store the

commission rule is valid for. Most General is to have All as Store Type and then Store

Type Value is empty



3.1.3 The Salesperson Tab

At least one line has to be setup on the Salespersons tab but they can be many. The lines here can have different Salesperson Type values. When the Sales Commission Rule is of type Transaction all the following explanations work for it. Please note that when the Sales Commission Rule is of Type Sales Target then the lines here have to be set but the fields Calculation and Value are not valid.

Salesperson Type: can be one of the following

o Salesperson: This is used when the commission is for the salesperson of the

sale

o Account Manager: This is used when the commission goes to the Account

Manager of the sale’s customer. The Account Manager is the salesperson

code of the customer on the Retail Customer Card

o Store Manager: The store manager for the valid store. The Store Manager is

set up for the store on the Store Card:

o Commission Salesp. Group: This is used when the commission goes to a

predefined Sales Person Commission Group. The Sales Commission Group

is setup separately and explain in chapter 3.2 Commission Salesperson

Group

o Store Commission Group: This is used when sales commission goes to the

Store’s Commission Group. Store commission group is one of the

Commission Salesperson Groups and configured specifically for the store.

No: The behavior of this field depends on the configuration of the Salesperson Type

and is only valid for Commission Salesp. Group

Calculation Type: Can be Amount or %

Value: A value for the valid Calculation type

Multi-Person option: Can be Each or Total

o Each: The commission value for the sales line goes to each salesperson

which is linked to the sales line. If the value is 2% and 3 salespersons linked



to the sales line than each salesperson receives 2 % which means 6%

commission will be in total for the sales line

o Total: The commission value for the sales line is divided to the salespersons

which are linked to the sales line. The value is 5% and two salespersons

involved then each of them receives 2,5% sales commission

Description: Description for the value in the No. field

3.1.4 The Sales Targets Tab

This tab is only valid for Commission rule of type Sales Target. Sales Target is controlled for the sales per sales person for the sales commission period which means that many sales can sum up for the sales commission to be reached. Here it is possible to set up per rule one line or many lines. It is easy to mix together lines with different Calculation Types.

Minimum amount: The amount of the sales which has to be fulfilled for this to be

triggered


Value: A value for the valid Calculation type

Other fields on the right part of the window: These fields are fields that can be

filtered for the Total Sales of the selected commission rule.

3.1.5 The Lines

The Lines of the Commission Rule is the second part of the window. Here it is possible to setup which items are the condition for the commission rule to be triggered. There has to be at least one line set up per rule but they can be many as well.

Item Group Type: can be one of these values



o All items

o Periodic Discount

o Division

o Item Category

o Product Group

o Item

o Special Group

No.: Depends on the value in the Item Group Type

Description: The description of the value chosen in the first two fields

Vendor: Vendor of the item

Vendor Name: Name of the chosen vendor

Excluding: When this is check mark the line is excluded to be triggered by the rule.

Example when product group A is selected in the first line then the second line can

have one item in product group A which is excluded.


Value: A value for the valid Calculation type. This is only valid to use for rules of type

Transaction which have field Line Specific checked.

3.1.6 Button Enable/Disable

When the Commission Rule is ready and should be active is has to be in status Enabled. To Enable a Commission Rule click on the Enable button and then the Status changes to Enabled. The Enable button has changed and now it displays Disable. To Disable a rule do the vice versa.

3.2 Commission Salesperson Group



The Commission Salesperson Group form lists the Commission Salesperson Groups, and allows the user to edit the Salesperson Groups. Under the Commission button the members of each group can be found by selecting Members, which opens the Commission Salesp Grp. Members window where the members of the selected group are and can be added to or deleted from

3.3 Commission Sales Periods

The Commission Sales Periods is used to define Sales Periods, either by single entry insertion or by running the Create Sales Period Report. It shows accumulated unposted commission for each period in the commission fields: Calculated Commission and Commission Sales.

3.4 Retail Salesperson

The Retail Salesperson card is the form where the Commission grouping is defined for each Salesperson. Commission Blocking is set and gives an overview of earned commission and Sales Target sale from unposted commission entries.



3.5 Test Commission

The system provides a tool to test items for Sales Commission. This tool is Test Commission and is in LS Retail – BackOffice, Sales Commission

The same form can be found as well in LS Retail – BackOffice, Sales Commission, Commission Rule, button Commission Group The Commission Test window:

Do the following to test if an item triggers one of the commission rules:

Fill in information to the upper part is the part of the Commission Test window.

Note that fields which are marked with ** are mandatory to fill out.

Click on the Test Commission button

When the conditions triggered commission the lower part of the window created a

line/lines with information about the commission. The relevant fields for the triggered



Commission are displayed for example the Commission Rule Code, the Calculation

type, Value, Calculated Amount and Salesperson. The created lines are per sales

person which is triggered for the commission can be none to many.

When no commission rule is found an information window about it pops up and the

lower part with the lines is empty

Remember always to Click on button Test Commission after changing some of the

input fields because the lower part does not change until this has been done


Chapter 4 - Functions and Commands 15

4 Functions and Commands

4.1 Generating Commission Entries

Commission Entries can only be generated for sales when the Commission Active is check marked in Retail Setup.

4.1.1 Manual creation of Commission Entries for Retail Sales Order / Retail Sales Return Order

Commission Entries are created automatically for Retail Sales Order / Retail Sales Return Order when they are posted and the Retail Setup is checked for field Calculate in Sales Posting. When the field Calculate in Sales Posting is not checked it is possible to create commission entries from a selected Retail Posted Sales Invoice in LS Retail – InStore Mgmt, Sales, History.

To manually create Commission Entries for Retail Posted Sales Invoice:

Select LS Retail – InStore Mgmt, Sales, History, Retail Posted Sales Invoice

Select the invoice to work with

Click on button Functions

Select Calculate Commission

The Commission Entries are created if the sales invoice triggered them

4.1.2 Manul creation of Commission Entries for POS Sales in a Posted Back Office Statement

Commission Entries are created automatically for POS sales when their Back Office Statement is posted and the Retail Setup is checked for Calculate in Statement Posting. When the Calculate in Statement Posting is not checked it is possible to create commission entries from a selected Back Office Statement in LS Retail – BackOffice, Statements, Posted Statement.



To manually create Commission Entries for Retail Posted Sales Invoice:

Select LS Retail – BackOffice, Statements, Posted Statement.

Select the one to work with

Click on button Statement

Select Calculate Commission

The Commission Entries are created if the POS sales included in the statement

triggered them

4.2 POS Commands

There are three POS commands for the POS client that is connected with Sales Commission. POS commands ADDSALESP and ADDSALESP_L give the possibility to assign more than one salesperson to a Transaction or Trans. Sales Entry The following commands are menu commands. They should be added as SALES menu buttons

SALESP: Sales Person Used to put a sales person for the commission into the sale in the case the login staff id is of employment type cashier

ADDSALESP: Additional Sales Person Used to add a salesperson for the sale’s commission. It is possible to add more than one sales person for the sale

ADDSALESP_L: Additional Sales Person for the sales line Used to add a salesperson for the active sales line in the sale. This command only works for the active sales line. It is possible to add more than one sales person per sales line.



4.3 Retail Sales Order and Retail Sales Return Order

For Sales Commission Entries to be created in Retail Sales Order / Retail Sales Return Order then:

A salesperson has to be on the order

The order has to belong to a store

The order has to be posted

It is possible to add one to many salespersons for the order by using the button Order and select Additional Salespersons. The quick way to add salesperson for the order is to use the

icon behind the Salesperson Code field. It is possible to add one to many salespersons for the selected order line by using the button Order and select Additional Salespersons.

4.4 POS Sales

For Sales Commission Entries to be created for POS sales then:

A salesperson has belong to the POS sale either connected to the Staff Id or added

for the Sale/Sales line

The POS Sale has to be posted

The Back Office Statement for the store where the sales are included has to be

created and posted


Chapter 5 - Use Cases 18

5 Use Cases

Cashier has to be set up as a salesperson to get commission on sales. No changes are needed on the POS.

5.1 Transactions, specific percentage and amount

This Commission Rule is for the Audio Item Category, excluding the DVD Product Group and the VCR Product Group. For each transaction, the Account Manager receives 0,05 Amount, the Commission Salesp. Group receives a total of 5%, and the Salesperson receives 1% each. This Rule is valid in July 2011, excluding weekends.

5.1.1 Setup

Open the Commission Rule form. On the General tab, set the Code, Description and the Priority, and set the Calculation Type as Transaction.

On the Validation tab, set the Validation Period, Store Type and Store Type Value.

On the Salespersons tab, set the Account Manager to receive 0,05 Amount, the Commission Salesp. Group Store07 to receive a total of 5%, and Salespersons to receive 1%.

Account manager is the sales person assigned to the customer (see customer card):



Lastly, specify that the rule applies to the Audio Item Category, excluding the DVD Product Group and the VCR Product Group.

5.1.2 Viewing Commission Entries

After items are sold and commission calculated select Commission Group, Entries, Unposted.

5.2 Transactions, Line Specific

In this example, salespersons get different commission for specific items. Line specific commission only applies to transactions, and not sales targets.

5.2.1 Setup

Open the Commission Rule form. On the General tab, set the Code, Description and the Priority, and set the Calculation Type as Sales Target.



On the Validation tab, set the Validation Period as number 1 which is No Time Limit and Store Type as All.

On the Salespersons tab, select Salesperson as the Salesperson Type.

Lastly, specify the items and the commission value for each line, and exclude items that fall under a specific periodic discount.

5.3 Sales Target

In this example, all salespersons get 5% commission until 1000 is reached, then 10% until 2000 is reached and 15% until 5000 is reached, and 5 amount when 5000 is reached on all items at all stores, excluding food items.



5.3.1 Setup

Open the Commission Rule form. On the General tab, set the Code, Description and the Priority, and set the Calculation Type as Sales Target.

On the Validation tab, set the Validation Period and Store Type.

On the Salespersons tab, set Salesperson and Account Manager as Salesperson Type.

On the Sales Targets tab, set up the Minimum amounts, Calculation Types and Values

Lastly, specify that the rule applies to All items, excluding Food Items.



5.3.2 Viewing individual targets

To view how individual salespersons are achieving the sales targets, open the Commission Sales Periods form and select Sales Period and Target Sale.

5.4 View earned commission by period

To view commission for a specific period open the Commission Sales Periods form. Here all periods are listed, and whether or not they have been closed.



To view commission entries for a specific period, select Sales Period and Entries.

To correct an entry, select the line and select Functions and Insert Correction Entry. A new line is created marked as a Correction. To delete the correction, select Functions and Delete Correction Entry.

5.5 End of Period

Open the Commission Sales Periods form. Enter the Posting Date for the Sales Period being closed, and select Sales Period and End Of Period.



It is possible to enter corrections to the transactions to make the commission higher or lower. This is done in the Commission entries that have not been booked. It is also possible to recalculate the commission for selected entries and for certain Sales Accounts and as long as the period that the commission is valid on has not been marked as closed.

5.6 Post Commission to Account

Open form Retail Setup.

Select relevant Bal. Acc. Type and Bal. Acc. No. to General Journal in General Ledger.

Calculate in Statem. Posting (for sales on the POS) and Calculate in Sales Posting (for other sales) need to be checked if the commission is to be created automatically when the statements are calculated for the POS and the sales orders are posted. If they are not checked, then the creations of the commission entries have to be created manually. Every salesperson must receive commission either as customers or vendors. See: LS Retail – BackOffice, Sales Commission, Commission Sales Periods, Posting tab.

Every salesperson must be assigned an Account No. for the commission to be paid into. Sales people can have different statuses, some are employees of the enterprises they work for and they receive commission as such, others are self-employed and therefore their status should be as vendors.



In order to post commission to account then select correct lines for posting in LS Retail – BackOffice, Sales Commission, Commission Sales Period. Then choose Select Period –Create Gen. Journal

Next select relevant template and batch. Validate correct posting date and then select Post to Account – Post.

To find resulting posted commissions select the General Journal form.



Here the user can change the ledger data if necessary before posting.

The posted entries are marked by the posting to account date and thus cannot be posted again.

sales commission quick guide ls retail nav 6.3

Documents

ls retail ehf

ls retail backoffice

back office statement

dvd product group

vcr product group

default commission group

create commission entries

audio item category