How to calculate commission on discounted and non discounted sales in Pricing

[Former Member]

Hi,

In our company we have a scenario, where in Franchise sells the product at actual price and also at a discounted price.

When they sell at the actual price, then they get a full commission (Ex: 3 cents/unit sold). When they sell at the discounted price, then they get less commission (Ex: 2 cents/unit sold).

But Franchise is paid initially full commission for all the units. Later when the units are sold Franchise sends the sales information which will have units that are sold at discounted price.

For example Franchise is paid full commission for 1000 units @0.03= $30

But Franchise sold 300 units at discounted price.

So the commission on these 300 units@0.02 = $ 6

Commission on remaining 700 units@0.03   =$21

So the total commission payable = $27

Net due from Franchise = 30 – 27 =$ 3.

Now the question is how to capture this scenario in SAP pricing.

Client would like to maintain the commission rates in the form of condition records.

The challenge here is the quantity differs for total sales and discounted sales which are captured as single line item. (1000 units in the above example)

Thanks to guide if someone had similar requirements.

[Former Member · Accepted solution]

Hi Moazzam and Lakshmipathi,

I could figure out a solution for this and my client agreed to my proposal of creating a debit memo for the difference commission.

In the above example, the commission difference is applicable only to 300 units. Hence create a debit memo for 300 units.

For Commission paid 300@0.03 = $9

Actual commission is 300@0.02 =$6

So Debit memo could be raised for $3 which simplifies the pricing.

By the way thanks for sharing your ideas

Regards,

Praveen

[Lakshmipathi]

One standard approach would be to have a manual condiiton type with an Accrual Key assigned in pricing procedure.  By doing so, as and when the values are entered manually, the related amount will get accrued in FI and FI can make one credit note to the extent of the value.  On the other hand, if you want to automate the process, then you have to go with related user exit.

G. Lakshmipathi

[moazzam_ali]

Hi

Youj can maintain and calculate this commision in invoices through normal pricing procedure. What you are looking for is that system should calculate payable commission based on your requirement and this is something which you need to do manually or create a Z program for it.

In standard system can't calculate it with the way you want. You have to create a Z program which will be executed at the end of the month and it will use your logic to read and caluclate commissions.

Here one thing I want to know is that do you want to pay commission with every invoice at the time of actual invoice or it will be a month end activity and system should give commission to customer on month end?

Thank$