In the (L7L) Screen
The (L7L) Level Compensation Table Parameters screen offers you another way to calculate your salesperson commissions. This screen uses a scale range to calculate compensation and is based on gross profit percentages.
In the (L7L) screen, you can split commissions among salespeople. In addition, you can specify whether a salesperson’s compensation is based on a percentage of the margin (the difference between the selling price and the cost) or of the entire sale.
Calculating compensation on a scale range means that you calculate compensation on specified ranges of dollar amounts. These dollar amounts can vary based on the amount of the customer’s invoice. Within each dollar range, the percentage of compensation can also vary, depending on the gross profit percentage of that invoice.
While the (L7) Compensation Table Parameters screen and (L7L) screen are similar, the (L7L) screen gives you an additional advantage. Instead of using one line on the table to calculate compensation for each invoice, the (L7L) screen has the ability to add several different lines of compensation together.
Suppose an invoice totals $11,000, and you set up the (L7L) screen to compensate a salesperson 28% for sales up to and including $8000. The system would calculate the compensation for the $8,000 on the invoice as one amount, in this example, $2240 (8000 x 28% = 2240). The system would then use a separate line on the table to calculate the remaining $3000 on the same invoice. If you set up the table to compensate the salesperson 32.5% for sales from $8001 to $11,200, the compensation for the additional $3000 would be $975 (3000 x 32.5% = 975). Once the system has calculated each line separately, it adds the lines together to reach a compensation total. In this example, the salesperson would be compensated $3215 for the $11,000 invoice (2240 + 975 = 3215). This table allows you greater flexibility to significantly reward the salesperson for higher sales.
You set up the (L7L) screen in much the same way you set up the (L7) screen. This handout describes all of the fields in the (L7L) Level Compensation Table Parameters screen and gives you instructions for making changes to these fields.
Note: You cannot have a compensation table set up in both the (L7) and (L7L) screens. If you previously set up a compensation table in the (L7) screen and need to begin using the (L7L) screen instead or if you want to practice using the (L7L) screen tables, you must first rename your compensation parameters file. To do this, go to the (Z) System Utilities screen and select the [F7] Rename A File function. At the prompt Enter File Name, rename the PAR-COMP file. The system creates a new PAR-COMP file when you set up a compensation table.
Click below for information about each field.
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Deleting (L7L) Lines and Entire Tables