New Commission System

Created by Migration Bot, Modified on Fri, 23 Oct at 2:29 PM by Migration Bot

Originally written by John Hardwick, last updated Jun 28, 2024, on the Swan Retail knowledge base (FRS).

Based on SwanFRS release version 1209

This document details how to set up and use the New Commission System within SwanFRS.

Click to view / download the PDF version of this document

FRS-New Commission System-120623-092229.pdf

Overview

This document acts as a statement of operation and a guide for setting up and operating the standard commission system based on incentive schemes and commission groups within SwanFRS.

There are several methods of generating commissions within SwanFRS. Whilst it is possible to use any of them this document details the ‘standard’ offering which offers the most dynamic build options. If processes documented here, do not map to your commission scheme please discuss the requirements with you implementation consultant.

Configuration

To build a commission system the following steps are required.

System Parameters

Menu Location: System Administration > Set Up Application Parameters

See Set Up Application Parameters

There are several commission-based settings within the application control. The standard commission system uses the two controls identified below

Split_Salesperson1

Specify the percentage of the order value to be applied to the primary salesperson on the sale.

This ratio is only used when either the secondary (Salesperson 2 is set in the order header or the salesperson is changed on the order line).

Setting to 75 for example, instructs the commission system to pay 75% of the order value to the primary salesperson.

If commission is not split, set to 100 / do not set the secondary salesperson within the order header.

Split_Salesperson2

Specify the percentage paid to the second salesperson identified in the order header or the line specific salesperson defined when adding an item to the order.

Note: a line specific salesperson supersedes the salesperson2 entry.

Setting to 25, for example, tells the commission system to pay commission on a quarter of the order value to salesperson 2 (if set) or the order line salesperson (if this varies from salesperson 1 on the order header).

NEW_COMM_PAY_LINE

Tick if the commission system is to pay at line level (effectively the 3rd salesperson) or solely at primary / secondary salesperson.

When ticked, if a new line is added to a sales order the system users the operators login for commission purposes (unless changes). This overwrites the secondary salesperson for that line when calculating commission.

Unticking instructs the new commission system to ignore the line specific salesperson and to pay using primary and secondary salespersons only.

Commission Groups

Menu Location: System Admin > Accounts > Set Up Commission Groups

See Set Up Commission Groups

A commission group is a band which can be linked to a product group or a SKU and tells the commission system which rate of payment is to be used when paying commissions.

SwanFRS offers a maximum of 26 commission groups (A to Z inclusive) each once can have a different payment control within a given incentive scheme.

Field	Comments
Commission Group	Set a group code (A to Z) Codes cannot be repeated.
Description	Specify the name of the commission group
Spiff	Ticking this box indicates this commission group is to be payable as a spiff. Spiffs are used when a specific rate is to be used when selling a particular stock item. As part of ‘marking down’ (Setting a preset selling price) a stock item it is necessary to select a mark down reason. The mark down reason can be linked to a commission group, this commission group supersedes the items ‘default’ product group and therefore it is possible to pay two rates for a given SKU – a standard rate for special ordered / perfect items and a separate rate for items marked down. The spiff commission is only paid when goods are marked as delivered (Finalized) and when they are sold for the expected marked down price (i.e., not further discounted at point of sale).
Active	Marking the commission group as inactive stops the commission report from calculating commissions for this group of products.

Product Groups

Menu Location: System Admin > Products > Set Up Product Groups

See Set Up Product Groups

Within SwanFRS the product group is used to control how the product / stock item is managed. One of the settings links the product group to the commission group – i.e., sales of products linked to this group accrue a certain commission payment.

The product group can be linked to multiple SKUs and therefore it is a shortcut to set commission payments for many SKUs in a single operation.

If the commission group is not set (and no groups are set at SKU or stock level) commission is not calculated for that range of items.

Products

Setting commission groups at product level is a broad-brush approach to generating commission however there may be exceptions where a SKU within a product group accrues a different commission value.

To accommodate this, it is possible to set a SKUs specific product group.

There are two methods for linking a SKU to a commission group.

Menu Location: Products > Set Up Product Pricing

To set up / change a SKU specific Commission Group, click on the pencil of the SKU in the main data grid, Click the Details tab and select the commission group from the pick list, saving the change once finished.

SeeProduct Creator (Spreadsheet)

If using the product creator spreadsheet to create and maintain catalogues, the commission group can be set by setting the commission group code (A to Z) in the Commission Group column, as indicated below and then importing into SwanFRS.

Setting an SKU specific commission group using either method, supersedes the product group commission group.

Item Specific Spiffs

This option allows specific ‘spiff’ values to be paid for specific SKUs. This supersedes the commission group settings but is overwritten by markdowns.

Menu Location: Products > Set Up Product Pricing

Within SwanFRS the set up product pricing may beused to manitain SKUs as an alternative to the Product Creator Spreadsheet. Where used it is possible to set a spiff payment value against the SKU.

As an alternative to Product Pricing SwanFRS offer the ability to maintain products via the Product Creator Spreadsheet.

SeeProduct Creator (Spreadsheet)

If using the product creator spreadsheet to create and maintain catalogues, the Spiff Payment Value can be set in the Items Tab.

Where not in use the SPIFF PAYMENT VALUE, whether in via the spreadsheet or via the program, MUST be set to NULL.

Setting to 0 effectively stops all payments against the SKU unless the stock item is marked down.

Setting a decimal value tells the New Commission reports to pay the value set thus superseding any commission values set against the SKU or Product Group linked to the SKU.

Setting to null tells the commission report to use the commission rates set against the incentive scheme.

When the SKU is added to the sales order the Spiff Payment Value is recorded against the sales order line. If the payment value changes thereafter it will NOT affect items already on sales orders. If the new payment spiff it to replace existing spiffs then the order line MUST be cancelled and added back in.

This form of Spiff is fixed and will not change if the line is discounted.

Markdown Reasons

Menu Location: System Admin > Warehouse > Set Up Markdown Reasons

See Set Up Mark Down Reasons

If a different commission payment is to be made for items with a markdown price (pre-set alternative selling price to the current prevailing promotion price), a commission group should be set for the markdown reason.

This is an optional setting and only applicable if items of stock are to accrue different commission values when marked down to that accrued when sold as a perfect item (or specially ordered).

Marked Down Stock

When using marked down commission groups, the act of assigning a mark down reason, subject to that reason having a commission group set, instructs SwanFRS to calculate commission using the marked down reason commission group which effectively supersedes the SKU’s or product group linked to the SKUs commission group.

Incentive Schemes

Menu Location: System Admin > Accounts > Set Up Incentive Scheme

See Set Up Incentive Schemes

The incentive scheme allows disparate commission groups to be collated into a payment scheme for a particular ‘job’ type within SwanFRS.

Field	Comments
Incentive Scheme	Specify the name for the incentive scheme.
Product Commission	Choose whether commission payments are to be calculated on order placement (written sales) or order delivery (Finalized sales) It is not possible to mix payments for a single incentive scheme.
Payment Commission	Specify the percentage rate (10.4 equates to 10.4%) payable on receipt of monies linked to the sales order. Payments are only processed once they have been confirmed via Cash Reconciliation and take the reconciliation date as date of payment rather than the date keyed / processed. This is one of the reasons why Swan Recommend daily cash reconciliations. Set this value to 0, to indicate no commission payment is to be made for receipt of monies. Payments are allocated to the primary salesperson only and are not split with secondary or line specific salespeople.
Team Bonus	Specify the percentage bonus paid as part of the team This control is not used in the salesperson commission report
Active	Tick to instruct SwanFRS that this commission scheme is currently operational and therefore commission payments are to be made to salespersons linked to it.
Commission Scheme	This is a hyperlink to the list of commission groups whereby it is possible to set rates of commission by group.
Volume Bonus	This is a hyperlink to a volume bonus system whereby commission is paid subject to the salesperson hitting specific targets.
Banded Vol. Bonus	Tick to indicate payments are to be banded for example if 2% is paid on the first 10000 of order value, 3% between 10000 and 20000 with 4% being paid thereafter set a banded. SwanFRS will pay 2% on the first 10000, 3$ on the 10000 between 10000 and 2000 and then 4% on any cumulative order values exceeding 20000.

Commission Schemes

Clicking the COMMISSION SCHEME button opens the list of commission groups.

Field	Comments
Commission Group	Reference Only.
Commission Percent	The percentage commission payable on sales (irrespective of discounts or not), of products linked to the specific commission group. Zero/ Blank indicate no commission payable.
Commission Fixed	Set when a fixed value is to be paid, irrespective of selling value, for a product linked to the commission group. Zero / blank indicate no fixed value is payable. It is possible to set both a commission percentage and flat value for the same commission group.
Outside Design Orders Percent	The percentage commission payable on sales (irrespective of discounts or not), of products linked to the specific commission group. Zero/ Blank indicate no commission payable. This value is paid instead of the Commission percentage if the Outside Designer check box is set against the User.
Outside Design Orders Fixed	Set when a fixed value is to be paid, irrespective of selling value, for a product linked to the commission group. Zero / blank indicate no fixed value is payable. It is possible to set both a commission percentage and flat value for the same commission group. This value is paid instead of the Commission percentage if the Outside Designer check box is set against the User.
Min. Group Contribution	This is the minimum threshold the salesperson must reach to obtain a group bonus Zero/ Blank indicate no commission payable. This control is not used in the salesperson commission report
Group Bonus	This column holds the percentage group bonus for the salesperson. Zero / blank indicate no fixed value is payable. It is possible to set both a commission percentage and flat value for the same commission group. This control is not used in the salesperson commission report

Volume Bonus

Clicking the VOLUME BONUS button opens the list of bonus targets.

Field	Comments
Target	Specify the threshold at which the bonus percentage will be paid.
Bonus %	Specify the bonus percentage payable for this target threshold.

If the banded bonus checkbox is ticked SwanFRS calculates commission on monies within the band.

For example, if the operator books (or delivers) 3500 worth of goods commission calculated using the banded option would be

Target	Bonus	Bonus	Banded Bonus	Comments
200	0.2%	-	0.00	No commission earnt on the first 200
1000	1.0%	-	1.60	Threshold passed therefore 0.2% paid on the 800 in this band
2000	2.0%	-	10.00	Threshold passed therefore 1% paid on the 1000 in this band
3000	3.0%	105.00	20.00	Threshold passed therefore 2% paid on this band of 1000
5500	5.5%	-	15.00	Threshold passed but only 500 balance, therefore 3% paid on 500
Total		105.00	46.60

Operators

Menu Location: System Admin > Security > Set Up Users

See Set Up Users

To accrue commissions the salesperson needs to be linked to an incentive scheme

If the salesperson has a minimum sales value (target) to reach within the commission period set the Minimum Sales For commissions value.

If the salesperson doesn’t reach this target no commission is payable (other than commission accrued through payments received).

Tick the Outside Designer to instruct the commission report to use the outside designer commission rates.

Ex Salesperson

If a salesperson leaves it is essential to mark the account as ‘in-active’ to stop the users’ profile from being used.

Do not change the name and assign to a new salesperson – close the account and create a new one.

If the salesperson is paid in arrears set the termination date to the last date commissions will be paid.

When running the New Commission reports any activity relating to a salesperson with a termination date prior to the end date of the report will not receive commission even if there are transactions on the account which would normally trigger a payment.

Locations

Menu Location: System Admin > Sales > Set Up Locations

See Set Up Locations

When paying a commission based on collective sales to a store manager it is necessary to set the managers name and threshold for commission.

If the sum of sales within the analytical period does not reach the Monthly Sales Budget, no commission is payable.

If there is no minimum leave the monthly sales budget set to zero.

Operation

Sales Orders

As the sale is generated or amended it is possible to set (and subject to permission change) the primary, secondary and line specific salesperson.

It is only necessary to set Salesperson2 when splitting commissions. Setting results in the salesperson commission report splitting the sale using the ratios set within the application parameters.

It is only necessary to change / set the line specific salesperson if the item being added to the order has been created by someone other than the primary or secondary salesperson on the sales order.

Setting a line specific salesperson diverts the commission payable away from the secondary salesperson, for this line (And this line only) to the line specific salesperson. I.e., setting the order line salesperson, to an operator other than the primary or secondary salesperson, supersedes the secondary salesperson set in the order header.

Payments

Payments received which are logged against a sales order, irrespective of operator, accrue, where configured a commission payment to the primary salesperson.

Payments received against sales order are NOT split with secondary or line specific salespeople.

Payment commissions are only paid once the payment has been cash reconciled and inherit the reconciliation date as the date payment is confirmed.

When operating with commissions payable only on first fully delivery or first full payment include all payments since the order was created, running with transaction dated reporting payments generate commission if reconciled within the reports date range.

New Commission - General

The New Commission – General report is designed to generate a statement per salesperson, optionally including order line details transacted within the analytical period, with a total of commission payable using one or more of the following incentive scheme controls.

Commission group payments on bookings or deliveries.
Spiff payments on delivered items
Payments on cash reconciled
Volume bonus

The report splits payments with secondary salesperson (where set) and the line specific salesperson (which superseded the secondary salesperson.

If the salesperson is set to an ‘outside designer’ outside designer rates are used in preference to commission group rates.

If the salesperson has a minimum sales threshold set commission is only paid if the bookings or deliveries exceed this threshold.

If the salesperson has a termination date which is earlier than the ‘end date’ of the report no commissions are paid.

A supplier specific version of this report is available - New Commissoin - Supplier

This Report will show the catalogue supplier or the supplier name, dependent upon control settings (RPT_SHOW_CAT_SUP Application parameter)

Selection Criteria

This report offers the following selection criteria

Field	Comments
Date Range	Specify a start and end date for the report. Only orders with transactions occurring within this date range will be considered for commission payments.
Date Control	Select how the date range is to be applied within the report. Choose from Transaction Date This option uses the date of processing to control the commission report. Whenever an order is created, amended, cancelled delivered or payments reconcile d SwanFRS date stamps the transaction. This date is unchangeable and provides a definitive statement of the order status as at the end date of the report. Assuming reports are run back-to-back this method ensures all amendments are captured and commission is a true and accurate reflection of the movement in the order pipeline within the reporting period. Latest of Fully Paid and Fully Delivered Date SwanFRS stamps the sales order with the date it becomes fully paid for and when it reaches the fully delivered status. The date used is the system date which cannot be influenced by the operator and is unchanged if the order is subsequently amended, refunds processed etc. The first fully paid / first fully delivered dates are locked once set and used by the report in this mode to pay commission when the order reaches both these milestones. The report includes ALL transactions processed against the sales order up to the end date of the report. First Fully Paid Date This option tells the report to calculate commissions for sales orders which have become fully paid within the specified date range. The report includes ALL transactions processed against the sales order up to the end date of the report. First Fully Delivered Date This option tells the report to calculate commissions for sales orders which have become fully delivered within the specified date range. The report includes ALL transactions processed against the sales order up to the end date of the report. Please note that the report uses movements to calculate the commission and not the order balance – any movement in the order value that occurs after the end date of the report is excluded and therefore manually calculating commission off the current order state may vary from that as at the end date specified.
Report Format	Specify the detail the report is to produce. Choose from Order Line Details The report will show all sales order lines processed Order Totals This option lists the order totals – i.e., it does not show order lines or who the sale is split with. Salesperson Summary This version of the report produces only the commission totals for each salesperson.
Base Location	Select which locations the report is to be generated for. Base location is the location the salesperson normally works from and is set within Set Up Users in the Location Description field. The report collates by salesperson default location and not sales order placement location.
Salesperson	Choose from a list of salespeople. The report only produces commission statements for those salespersons selected from this list.

Report Detail

The report example shown below was produced using the order detail line option.

	When showing the sales order detail, the report shows the sales order header with a grey background showing the order line (movements) within the analytical period or if running with a final date set all movements up to the final date. If the sale is split with other salesperson a green ‘split sale’ legend appears. To see the details the other salespeople earning commission off this order run the report in detail mode. Commissions payables are shown in blue. It is only possible to pay on orders (written) or delivered (Finalized) within the one incentive scheme.
	Order lines are only displayed in ‘detail mode’ and show the financial movement of that order line within the reporting period (cumulative for first set dates). The left-hand green highlight shows the salesperson sharing commission for the order line followed by the percentage rate payable as set in the system settings. The order line shows the SKU, description, product group, transaction date, quantity, booked and delivered values. Spiffs are only calculated for delivered items.
	This section is the only printed element of the report when the salesperson total format is selected, showing the breakdown of commission payments and a total commission earned.
	The Booked value shows the order movement within the reporting period from a written / ordered perspective – this is effectively the pipeline and will only generate commission payments if the incentive scheme is set to pay on ‘Orders Booked’ and are calculated from the commission scheme rates set for the SKU. If the Spiff Payment Value was set for the SKU at time of adding the item to the sales order, this value will be paid instead of the calculated commission value.
	The Spiff column pays out on delivered goods only (irrespective of commission scheme settings for items that are marked down and linked to a marked down commission scheme). Spiff values only pay out if the order line is not discounted at point of sale. Spiffs relate to items sold against commission groups with the ‘markdown’ check box selected and have to be ‘marked down’ with a mark down reason linked to the specific commission group.
	The Delv’d value shows order lines confirmed as delivered / taken within the reporting period – this is effectively the realized sales and will only generate commission payments if the incentive scheme is set to pay on ‘Delivered’ and are calculated from the commission scheme rates set for the SKU. If the Spiff Payment Value was set for the SKU at time of adding the item to the sales order, this value will be paid instead of the calculated commission value.
	Booked commission payable – using commission groups Delivered commission payable – using the commission groups Where set the threshold indicate the value of bookings or delivered which must be met by the salesperson to trigger commission payment. (If the salesperson does not reach the orders threshold only payment bonus values are paid) Spiff value – the sum of spiffs accrued – spiffs are only paid on delivery of goods. Payment bonus – where set this value is calculated from ‘cash reconciled’ payments processed within the report’s date range (or cumulatively if the report is running for a first set date).
	This section details the breakdown of the commission payable and shows, where set, payments on bookings or delivery derived from the commission groups, volume bonus values, spiff payments and payments generated via monies booked against the sales order and reconciled within the reporting date range.
	This section shows the total payable to the salesperson.

New Commission - Salesperson

The New Commission – Salesperson report replicates the New Commission – General report in report layout and content however it will only generate an audit for the operator logged into the system. I.e., Operator 1 cannot see commission statistics for operator 2.

Selection Criteria

Field	Comments
Date Range	Specify a start and end date for the report. Only orders with transactions occurring within this date range will be considered for commission payments.
Date Control	Select how the date range is to be applied within the report. Please refer to the New Commission - General section of this document for details of this choice.
Report Format	Specify the detail the report is to produce. Choose from Order Line Details The report will show all sales order lines processed Order Totals This option lists the order totals – i.e., it does not show order lines or who the sale is split with. Salesperson Summary This version of the report produces only the commission totals for each salesperson.
Login Name	Specify the login name used to access the system. The login name specified must match that used to gain access to SwanFRS for the report to generate details.

Report Detail

The output of the report replicates that defined within the New Commission - General section of this document.

If an attempt is made to view another salesperson’s statistics the report will display the following.

If the report is run for the operator and an attempt to refresh the report is made the report again will hide any sales related data.

This report is designed to allow the salesperson to generate their own commission statement.

New Commission - Manager

The New Commission – Manager report is designed to generate a manager’s bonus which is a percentage of all orders taken within the reporting period excluding sales where the manager is the primary salesperson.

If the store manager generates their own order specific commission and received a bonus on sales booked within their store(s) by other salesperson it is advised to generate a second ‘user’ for the store manager and link this to the managers incentive scheme. This mangers user is a place hold only and not to be used for transaction activities – it exists purely to allow a store manager to receive commission on sales they generate and bonus payment on orders transacted by others. Please consult with your Swan contact should you require assistance setting this up.

To operate the manager’s name should be set against the location.

Commission group payments on bookings and / or deliveries.
Volume bonus
Bonus derived from monies received and reconciled against sales orders.

This report does not use the ‘outside designer’ commission group rates if set for the managers commission scheme.

Any order line with a spiff payable to the salesperson is not considered for a manager bonus.

If the manger has a minimum sales threshold set commission is only paid if the bookings or deliveries exceed this threshold.

If the manager has a termination date which is earlier than the ‘end date’ of the report no commissions are paid.

The managers report does not use the spiff payment value system paying out using the commission groups and incentive scheme rates only.

Selection Criteria

This report offers the following selection criteria

Field	Comments
Date Range	Specify a start and end date for the report. Only orders with transactions occurring within this date range will be considered for commission payments.
Date Control	Select how the date range is to be applied within the report. Please refer to the New Commission - General section of this document for details of this choice.
Report Format	Specify the detail the report is to produce. Choose from Order Line Details The report will show all sales order lines processed Order Totals This option lists the order totals – i.e., it does not show order lines or who the sale is split with. Salesperson Summary This version of the report produces only the commission totals for each salesperson.
Managers Name	Select the manager(s) this report is to be run for. The report collates by location manager collating all sales for all locations the manager is responsible for.

Report Detail

The report example shown below was produced using the order totals only option.

New Commission – Team Bonus

The New Commission – Team Bonus report runs alongside the general report offering the ability to pay a bonus value to any operator linked to a selected incentive scheme.

This report uses the team bonus percentage set against the incentive scheme to generate a flat payment across all members of the incentive scheme irrespective of contribution to the overall bonus pot, paying on either order booked or orders delivered as set against the incentive scheme.

If the team member has a minimum sales threshold set commission is only paid if the bookings or deliveries exceed this threshold.

If the team member has a termination date which is earlier than the ‘end date’ of the report no commissions are paid.

The team bonus report does not use the spiff payment value system paying out using the commission groups and incentive scheme rates only.

Selection Criteria

This report offers the following selection criteria

Field	Comments
Date Range	Specify a start and end date for the report. Only orders with transactions occurring within this date range will be considered for commission payments.
Date Control	Select how the date range is to be applied within the report. Please refer to the New Commission - General section of this document for details of this choice.
Report Format	Specify the detail the report is to produce. Choose from Order Line Details The report will show all sales order lines processed Order Totals This option lists the order totals – i.e., it does not show order lines or who the sale is split with. Salesperson Summary This version of the report produces only the commission totals for each salesperson.
Incentive Scheme	Select the incentive scheme(s) this report is to be run for. The report includes all operators within the incentive scheme whether they have generated sales within the analytical period.