Sales commission Process in D365

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Posted on by BanuReddy

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Hi All,

Our client wants to give the salesperson commission based on the actual profit.

For Example:

The purchase order amount is $2000

The sales order amount is $1000

Gross profit = 2000 - 1000 = 1000

the salesperson gets a 10% commission from the gross profit. In this scenario, he gets 100 dollars.

Does standard ax does have this functionality available?

I know in ax we have an option to set up a sales commission based on the sales order revenue.

Do we need to do customization for this?

Thanks in advance.

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Answers (1)

BanuReddy 285 on at

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RE: Sales commission Process in D365

Thanks for your reply Mattguo. Will try this in my envrionment and will update you.
BanuReddy 285 on at

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RE: Sales commission Process in D365

Hi Andre,

We are in Ax2012 R2 now. We are upgrading to D365 next year. I wanted to make sure whether D365 has this feature or we need customization.
André Arnaud de Cal... 291,431 Super User 2024 Season 2 on at

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RE: Sales commission Process in D365

Hi Banu,

Your question topic was about Dynamics 365; your screenshots are taken from AX2012. On what version do you have your question?
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MATTGUO 22,308 on at

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RE: Sales commission Process in D365

Hello,

Indeed, the service item can not be supported. But if you manually enter the cost price for the it after invoicing PO, then recalculate line margins, then estimated margin and commission can be display as the expected.

The commission calculation:

Manually change the cost price after invoicing PO:

Recalculate line margins:

Check the commission:

If the item is not the service item, you can directly recalculate line margins without manually fill in the cost price. Please try it.
BanuReddy 285 on at

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RE: Sales commission Process in D365

Thanks, Andre for your response.

I tried selecting Margin for sales commission calculation but it does not work for me.

Please refer to the below screenshots which explains how I tried this.

Sales commission setup:

Commission sales group:

Commission Item group:

Commission Customer group:

Commission posting :

Assigned 50200 - commission bonus account

Assigned 60500 - Commission income account as commission offset

Commission calculation :

Assigned the commission customer group to the customer.

For an example: Assigned "IS" commission customer group to customer account C00001

Assigned the commission Item group to the Item.

For an example: Assigned "IS" commission Item group to Item Number: 0.0.463.65 (this is a service item)

The item model group is service. ( We act as a distributor between vendor and customer. The vendor will directly deliver the item to the customer .

Therefore we don't have inventory. All our items will be service item)

Sales order:

Created Purchase order via a direct delivery form:

Here my gross profit is 500-400 = 100 (GP= sales amount - purchase amount)

Invoiced the purchase order and sales order.

I think it does commission based on the sales revenue.

The expected commission should be $5.

My purchase amount is 400, the sales amount is 500

The gross profit is 100

Now Casey should receive 5% from 100 dollars which should be $5

Please suggest me if I missed any setups.
André Arnaud de Cal... 291,431 Super User 2024 Season 2 on at

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RE: Sales commission Process in D365

Hi BanuReddy,

There is an option to set the commission calculation based on the margin. I haven't used the commission feature for about 12 years, so not sure how it will deal with several item cost models and inventory recalculations. You can actually test some setup and various use cases.

In the past, a customer wanted to have a margin per batch. In that scenario, we enabled the batch inventory dimension also to include financial cost.
BanuReddy 285 on at

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RE: Sales commission Process in D365

I will try that option and will let you know. Thanks for your response :)
MATTGUO 22,308 on at

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RE: Sales commission Process in D365

Hi BanuReddy

Had you tried to use margin for the commission calculation?
BanuReddy 285 on at

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RE: Sales commission Process in D365

Oh my god I typed wrongly. Extremely sorry for my mistake. Yes you are right. My purchase amount is 1000$ and sales amount is 2000$ . My gross profit here is 1000 ( Gp = sales - purchase ) .

The sales person gets 10 % from my gross profit. He should get $100 as his commision .

Does standard ax has this feature available? Or I should do customization to achieve this?
BanuReddy 285 on at

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RE: Sales commission Process in D365

Oh my god I typed wrongly. Extremely sorry for my mistake. Yes you are right. My purchase amount is 1000$ and sales amount is 2000$ . My gross profit here is 1000 ( Gp = sales - purchase ) .

The sales person gets 10 % from my gross profit. He should get $100 as his commision .

Does standard ax has this feature available? Or I should do customization to achieve this ?

Thanks in advance