Condition Type for commissions across sales orders

[Former Member]

Hi,

I have a requirement for which I need inputs:

We have sales employee who will get commissions based on the total sales they make. The relevant sales employee will be brought into SAP as a business partner (specific account group and hence partner function).

A tiered commission would be set up for each of the sales employee, for e.g. 1 to 10,000 , commission is 2 %, 10,000 to 30,000 commission is 3 % and above that is 5 %. The commission applicable should be determined at the time of sales order creation. The commission applied to an order should be determined based on all the sales orders for the sales employee and not that specific sales order. For e.g. if the sales employee has already got one sales order of worth 6000 and he gets another order of worth 9000, then as per the example, he is entitled to 2 % for 4000 of the order (his total sales now reacheds 10,000 and he moves now into the next bracket) and is entitled to 3% for 5000 of the order value. Also in case any order gets cancelled then the cumulative sales value for the sales employee should take care of the cancelled order.

I have a condition type where by I maintain the scale and the corresponding commision rates for the sales employee. I have ticked the condition update setting so as to cumulate the order value. I have the following questions:-

1. How do I ensure that the rate applicable for the specific order takes into consideration the past sales orders for the sales employee and not only that sales order.

2. How do I determine the condition record based on parter function (partner funtion for the sales employee)? I did bring in the partner role in the pricing communication structure but that does not work.

3. How should I take care that the cancellation or sales order takes out that value from the cumulative value for the condition record. As of now it does not.

A quick response would be highly appreciated.

[bcrao]

Yes,

It is good idea using regate. anyway company will not give commission immediagtely to emp.

Sales commission is based on sales vol at any given time. it is better to use regates.But rebates will give accurals to payer.

How to map it any suggestion?

[Former Member]

See , this also can be mapped.

Lets say company has 10 Sales employee( 10 partners )

Company always have some sales target to employee ( Say each one should sales atleast 10,000 PC)

if we define a scales as 5000 - 1% commission

5001 -10000 - 2% commission.

So on the past record Company can put some amount say 1 lac rs in Accrual Account . Which it has to pay to the sales employee after a perticular mile stone say Quaterly.

So after the End of quater based on the sales company will pay the amount to sales employee and the correspondind amount will get reversed from the Accrual already posted.

Hope this clarifies a bit.

Thanks and Regards

[Former Member]

Hi Sunil,

After Reading ur scenerio , i understand that this is exactly what we do when we give rebtaes to Customer .

we give sales target to sales employee , we set scale basis for them , we are giving commision not immediately but quaterly (Or u can say after a perticular milestone ), we also consider cancelled Invoice while calculating rebates .

So i think If u maintained ur sales employee as Rebate Recipient and map the process exactly as we did in Rebate , I think u can cope with the Scenerio.

[Former Member]

Hi Kastubha,

Thanks for your reply. I am trying now to use rebates for this functionality. However I have few questions and I am unable to progress beyond a point:

Let's say that for a sales employee i set the rebate agreement. The sales employee's commission is as follows:

1 - 10,000 (1 %)

10, 000 - 30,000 (3%)

30,000 and above (5%)

The calculation type for condition type is percentage, scale type is graduated to interval scale.

I am trying to use scale in rebate agreement to set up the commission structure for the sales employee. However, there is only accrual rate that I can enter. There is no place to enter the accrual rates as per the scale.

Because of this, what is happening that the rebate record determined is the accrual rate and not what is as per the scale. Also I need the condition record to keep track of total sales for the employee so that it knows what commission rate to apply based on how much the sales employee has achieved.

Am waiting for you inputs.

Best Regards,

Sunil