About (L7) Screen Parameters
The (L7) Compensation Table Parameters screen and the (L3) Commission Table Parameter screen perform essentially the same function, but in different ways. The (L7) screen has more features than the (L3) screen and allows you to calculate commissions on a sliding scale. Through the (L7) screen, you can also split commissions among salespeople. In these screens, the terms commission and compensation are synonymous.
Calculating compensation on a sliding scale means that you calculate compensation on specified ranges of dollar amounts. These dollar amounts are the amount of the invoice, all invoices for the customer, or all sales for the salesperson, whichever you calculate compensation from. Within each range, the percentage of compensation varies, depending on the gross profit percentage or dollar amount of that invoice, all the invoices for that customer, or all the sales for that salesperson, again depending on how you calculate compensation.
For example, for invoice tickets under $50, your salespeople could earn no compensation if their totals earn 0 to 15% gross profit percentage. For 15% to 20% gross profit percentage, they could earn 20% compensation on the gross profit margin; for 25% to 35% gross profit percentage, they could earn 25% commission; from 35% to 50% gross profit percentage, they could earn 30% compensation; and from 50% to 100% gross profit percentage, they could earn 40% compensation. For sales of $50 and up, however, in the same gross profit percentage categories, they could earn 0%, 25%, 30%, 35%, and 50% compensation, respectively.
The default for an item’s compensation code is its department number. The compensation code remains the same as the department number unless you change the compensation code in the Order Entry window
Note: Your can set up your system so that you can assign a compensation code in Order Entry. To do this, set the Set Commission Code field in the (LGØ) screen to Y. If you do not assign a compensation code, the system uses the item department number.
In the (L7) screen, you can set separate compensation table parameters for each general ledger location (profit center). You can also set default (global) compensation tables for each location.
When you have set global parameters for location 1, set up global parameters for each additional location that you run differently than location 1. If you do not set separate global parameters for a particular location, the global parameters set for location 1 are used for that location.
The global table applies to all salesperson numbers that are not included in a specific compensation table. Compensation tables can be set for each range of salespeople in each location whose compensation is calculated differently than other salespeople’s compensation. The global table for location 1 also applies to all other salesperson numbers not included in the range for any table and with no global table for their location.
Note: If you are authorized for the Furniture Commissions feature, certain fields in this screen no longer apply. Consult the individual fields descriptions if needed.
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