Commission rules can be set up to calculate commissions owed on sales, either by value, quantity, or by margin.

To set up a new Commission Rule, navigate to Customers > Commission Rules and choose “New Commission”.

You will be presented with the following options:

• Account code – A unique code which must be assigned to this commission rule;
• Account name – A recognisable name for this commission rule;
• Supplier or Employee Account – This is to allow the commission to be assigned to the correct person or organisation;
• Start date – The date you wish the commissions to start;
• End date – The end date for calculating commissions;
• Whether you would like to pay commissions against invoiced raised, or only against invoices paid.

The next step is to decide how you would like to commissions to be assigned:

• Sales of stock – Choose a stock item if commissions are paid against a stock or order item;
• Sales to customer – Choose a customer account if commissions are payable only against a particular customer;
• Sales to project – Choose a relevant project if commissions are paid against a project only;
• Sales to department – Choose a relevant department if commissions are paid against a department only;
• Sales to country – Choose a country if commissions are only paid for sales in a particular country.

Next, it is necessary to determine how commissions are calculated, choose either sales by value, quantity or by margin.

• For sales by value, commissions will be calculated against total sales value, excluding VAT.
• For sales by quantity, commissions will be calculated against the total number of items sold;
• For sales by margin, commissions will be calculated against the profit margin on sales.

Each option allows control over the lower and upper thresholds, rates and periods in which commissions are calculated.

Finally, clicking ‘Create’ will finalise the set up process, which can be edited later from the Commission Accounts screen.