Commission on Sales

[former_member461383]

D/ Friends,

Scenario is that weu2019re selling thru agent. In sales order sold-to-party is agent & ship-to-party is the end customer. Bill-to-party & Payer is also the end customer. Now the issue is that, we want to give commission to the agent in the sales order. How it can be done? Also pls tell VKOA settings regarding commission.

u2022 Iu2019ve searched sap-img site, but it was totally unhelpful (as usual).

u2022 Iu2019ve searched the forum also for 2 days but no solution has worked.

u2022 Is Partner Function has to be created for Sales Document Header or Customer master?

u2022 Any userexit has to be created/ edited?

u2022 Is Partner Function- Agent has to be created as Customer or Vendor?

u2022 What shd be the Ctrl Data 1 for the Cond. Typ- Commission?

Pls help.

Thanks & rgds.

[jignesh_mehta3 · Accepted solution]

Hello,

Currently your Invoice' Accounting Entry would be something like this:

Customer A/c Dr. 100

Sales A/c Cr. 100

Now you want to introduce Commission here But the Commission Amount should not change the Sales & Customer A/c postings. If this assumption is correct then follow this:

Insert two Condition Types in your Pricing Procedure as follows:

1. Commission Payable (always Negative)

2. Commission Expences (always positive)

Create required GL Accounts & maintain VKOA settings.

The rate of both the above Conditions would be same say 10%.

Now your Invoice's Accounting Entry would be:

Customer A/c Dr. 100

Commession Expences A/c Dr. 10

Sales A/c Cr. 100

Commission Payable A/c Cr. 10

Now, as Commission is an Sales Expence, it (Debit entry of Commission Expences) would directly hit Profit & Loss A/c (like other Expences of Rent, Interest etc...)

For the Credit Charge of Commission charge the End-User will have to manually pass an Accounting Entry which would be as such:

Commission Payable A/c Dr. 10

To Vendor A/c Cr. 10

The above entry would clear the Commission Payable A/c & create a liability of Rs. 10 in Vendor's account.

We have implemented the above scenario at a client site & they are successfully using this arrrangement.

As you are already entering Partner Function of Vendor in Sales Order / Invoice, you can anytime create a Z-Report for Commission Payable to each Vendor over a period of time...

Hope this clarifies...

Thanks,

Jignesh Mehta

[former_member461383 · Accepted solution]

D/ Jigesh,

Very helpful. Nobody has yet given such a precise solution. I will do as you have suggested & if any clarification requires, I will get back to you.

Thanks & rgds.

[jignesh_mehta3 · Accepted solution]

Hello R S,

Thank you for the appreciation.

As mentioned earlier, I have implemented the above at a Client Site almost two years back & they are successfully using it till date.

Anyways try it & let us know if you have any queries...

Thanks,

Jignesh Mehta

[former_member461383 · Accepted solution]

D/ Jignesh Mehta,

In the entry

Commission Payable A/c Dr. 10

To Vendor A/c Cr. 10

This Rs.10 shd hit the vendor's recon a/c? And in VKOA what settings are required for this. Also different account keys are required for commission payable & commission expense?

Thanks & rgds.

[jignesh_mehta3 · Accepted solution]

Firstly try to understand that Rs. 10 commission is payable to Vendor. So it should be posted in Vendor's Account. (Vendor Code)

From Invoice you cannot post directly to Vendor Account, so I have suggested to post it to Commission Payable A/c. Thus in VKOA you need to maintain Commission Expense & Commission Payable GL Accounts against respective Account Keys.

Later End-User will have to manually post a Accounting Entry which would transfer the Credit charge of Commission from Commission Payable a/c to Vendor A/c.

Subsequently when you pay to Vendor, the Accounting Entry would be

Vendor A/c Dr. 10

Bank A/c. 10

Yes. you will need different Account Keys for Commission Expense & Commission Payable because GL Accounts are different.

Hope this clarifies.

Thanks,

Jignesh Mehta

[former_member461383 · Accepted solution]

D/ Jignesh Mehta,

Again lot of thanks for your quick support. Pls keep track of this thread, I may need your help tomorrow also.

Thanks & rgds.

[jignesh_mehta3 · Accepted solution]

We (Forum Members) are always here for support.

I have explained you the entire process at length & would appreciate if you first try the entire the process as suggested & update the forum.

Anyways feel free to post your queries tomorrrow.

Thanks,

Jignesh Mehta

[former_member461383 · Accepted solution]

D/ Jignesh Mehta,

As you have nicely explained the accounting part, similarly can you explain elaborately the settings in partner function? Pls explain settings in VOPAN, XD01, XK01 & any other setting required. In our scenario Agent is sold-to-party. Also tell what changes we need to do when we create an order.

For FI:

1. How this entry will be passed

Commission Payable A/c Dr.

To Agent A/c

I mean thru which T.Code?

2. Will FI come to know of this liability automatically or FI has to be informed externally?

3. FBL1N & FB60 will be used???

4. How Agent will become Sold-to-party as well as Vendor? What settings are required in Partner determination config? Pls tell step by step.

Thanks.

[jignesh_mehta3 · Accepted solution]

Hello Rahul,

I believe you already know that we are not here for spoon feeding. The questions you have posted above are very fundamental & basic question, which you are expected to know. Also please do some R & D yourself to understand the process.

As far as FI entry is concerned, you need to take help of FI consultant in your organisation to set up the procedure.

Also kindly let me know why have you changed you SCN login ID? Earlier you used to raise your queries thru R.Sgr user id. (http://www.sdn.sap.com/irj/scn/bc?u=ie2jsk3t5n4%3d). Please provide us a explanation of using two different User ID's while posting queries in SCN forums.

Expecting your reply soon...

Thanks,

Jignesh Mehta

[Lakshmipathi · Accepted solution]

1. How this entry will be passed
Commission Payable A/c Dr.
To Agent A/c
I mean thru which T.Code? 
2. Will FI come to know of this liability automatically or FI has 
           to be informed externally? 
3. FBL1N & FB60 will be used???

All the above questions should have been posted in FI forum. Please post your question in the right forum. Please dont continue such questions here in SD forum.

thanks

G. Lakshmipathi

[former_member461383 · Accepted solution]

D/ Jignesh Mehta,

Again thanks. I've forgotten the password of other ID.

Thanks.

[jignesh_mehta3 · Accepted solution]

Hello Rahul,

I regret to say that "Forgotten Password" of User ID is not a valid reason to create a New User ID.

When you login to SCN Forums, there is a link for "Forgot Password" to re-activate your lost password. You should have used it.

http://www.sdn.sap.com/irj/scn/logon?redirect=http%3a%2f%2fforums.sdn.sap.com%3a80%2findex.jspa

SD Forum Moderators: I request you to take up this case where Rahul has created two SCN User ID's - "R S" & "R.Sgr" without valid reason.

Also please stop sending emails to forum members asking for their mobile numbers. Whatever SAP SD queries you have can be discussed so that every forum member can benefit out of it.

Hope this clarifies,

Thanks,

Jignesh Mehta

Edited by: Jignesh Mehta on Dec 22, 2010 10:24 AM

[former_member461383 · Accepted solution]

D/ friends,

In Bill Doc I want following entry:

Commission Expense A/c Dr To Commission Payable A/c

But Iu2019m getting following entry:

Commission Payable A/c Dr

To Commission Expense A/c

Its accrual. So Iu2019ve done following settings:

u2022 In Pric Procd, against Commission Expense Condition Type Iu2019ve assigned same account key in Acc Key column as well as Accruals column.

Similarly, against Commission Payable Condition Type same account key (but different from above), has been assigned in Acc Key column as well as Accruals column.

u2022 In VKOA, both the G/Ls r maintained in Provision Account column.

Pls advice what is wrong.

Thanks.

[jignesh_mehta3 · Accepted solution]

Hello Rahul,

Appreciate your efforts in trying to solve the issue.

Please refer to me first Reply where I suggested:

Insert two Condition Types in your Pricing Procedure as follows:

1. Commission Payable (always Negative)

2. Commission Expences (always positive)

That was a mistake, just reverse the Positive & Negative indicators in Condition Types. I mean make it:

1. Commission Payable (always Positive

2. Commission Expences (always Negative)

And you will get the desired result.

Thanks,

Jignesh Mehta

[former_member461383]

Thanks.

[former_member461383]

D/ Mentors & Friends,

1. Iu2019ve done partner determination for Agent (i.e. Sold-to-party) as Vendor.

2. Made Commission Condition Type as statistical.

3. But then how commission amt will hit G/L?

4. Shd it hit Agentu2019s recon a/c?

5. What settings are required in pricing procedure & a/c determination?

Pls tell point by point as Iu2019m new to the scenario. Searching Forum & sap img site has not helped in a/c determination. I hope that somebody will definitely provide a very specific solution.

Thanks & regds.

[sidi_reghioui]

I join myself to what Lakshmipathi said, there are many sites that do outmost best to help. People on these sites are putting their time and effort to create posts that helps others understand how it works. so don't be aggressive just because you didn't look that well.

regards

Sidi

[Lakshmipathi]

Iu2019ve searched sap-img site, but it was totally unhelpful "(as usual)"

Please avoid commenting like this. It is really a very helpful site.

Iu2019ve searched the forum also for 2 days

Do you mean to say that you have been searching for 2 days ?? Surprising. In the below link, just type "Sales Commission" with category "All forums" and select the date range to "Last 90 Days".

[Forum Search|http://forums.sdn.sap.com/search.jspa?threadID=&q=sales+commission&objID=&dateRange=last90days&numResults=15]

See how many threads are there on the same topic.

thanks

G. Lakshmipathi