Discounts
Description
Any discounts applied to a document will affect the way in which commissions are applied, as well as the sales statistics generated.
Effective Line Discount
In order to calculate the discount that has effectively been applied to a line, iDynamics Commissions will get the sales price that, by default, is applied to the selected combination of customer and item, and will compare it to the unit price currently assigned (with all discounts applied).
This means that iDynamics Commissions will consider all of these as discounts:
- Manually changing the unit price.
- Assigning a discount % to the line.
- Applying a document discount (except payment discounts).
To do this last bit, iDynamics Commissions will always use the base line amount (without taxes), as Business Central already applies any document discounts to this field.
If needed, you can get more information on how iDynamics Commissions calculates this value, and how to customize it, in the developers section of the manual.
Payment Discounts
iDynamics Commissions considers that payment discounts are something offered by the company, that should not penalize the commissions given to the salesperson nor their sales stats. If a salesperson posts a sale of $1,000, with a 10% commission, and the company decides to give the customer a 2% payment discount, iDynamics Commissions will use $1,000 as the base on which the commission will be calculated, regardless of the fact that the customer actually paid $980 for the invoice.
Set Commissions Based on the Applied Discount
You can configure different commission rates, each one with a different Maximum Discount %. If you define:
- A commission rate of 4% with a maximum discount of 10%.
- Another with a 2% commission and a maximum discount of 20%.
- And another with a 1% commission and a maximum discount of 40%.
Because the salesperson will get the highest commission possible, they will get:
- A 1% if they apply a discount between 20.01 and 40%.
- A 2% commission between 10.01 and 20%.
- And a 4% commission if they apply a discount of 10% or less.
If you decide to try this combination, when you define the commission rates, remember to be careful with the Minimum Profitability % field. By default, the app will not generate any commissions if an item is sold below profit, but it is too easy to try to apply a 35% discount on a line to check whether the app applies a 1% commission, be surprised by the fact that the app will not generate any commission, and not notice that it is because the final price is below cost (you can set a negative Minimum Profitability % if needed).
You can check both the effective discount % and the profit %, in the footer of the commission preview factbox.