[Question] Sales commission

[LouisaEls]

Good day,

I realize there are various ways in which sales commission can be calculated.

If however commission is calculated at a fixed percentage of total sales (credit notes factored in and VAT deducted), should discounts play a role in this calculation?

I process on Pastel and have until now processed discounts in the Sales Credit journal. I have found it simpler to include the discount on the invoice. Journal discounts aren't taken into account in 'Sales Analysis Codes', discounts on invoices are included however. Inclusion/exclusion of the discount on the invoice therefore affects the Sales Report which will ultimately determine the commission.

Therefore, should discounts affect sales commission?

Thank you

[Dave A]

I pay commissions based on the final price paid, which include deductions for discounts. My logic is that often the sales rep has influence on the discount structure given on the sale anyway.

[HR Solutions]

Yes - I pay commission on the final price as well after discounts.