Commission Management

This article describes how you can apply commissions to the invoices sent to customers.

Unosof is able to manage commissions applied to invoices through different methods. Its important to understand which method fits the best to your organization, based on your financial structure and needs. The explanation we give about each method, is not only to show you how things work, but above all, to show what are the pro's & con's, and to help you to make select a method that answers WHY the specific choice you made is your perfect solution. We have described 4 options, in order to pick up knowledge about this topic from different angles and points of view.

1. PO page // Commission as "Tax".

We can use the column called “TAX” on the PO page as a Commission. This solution would allow to have the value of the flower separated from the commission %. That results that the sales values of the flowers and commission, will be separated in the sales reports. However, this idea was discarded because of two important reasons: a) We do not want to declare to the SRI, a commission as a tax. We would have to program a rule around this to make the value appear in the SRI form as a commission, and not as tax. b) Commissions are not getting paid by the customer, therefor declaring these PO/Invoice values as a sale would also be a mistake. Why declaring a 1000 dollars got sold if you get paid 900? Therefor we have to program a rule in the SRI form to only declare the PO/invoice value (900).

2. Apply Commission via Trading Company

Establish a Financial Trading Company. That could be just a (off-shore) bank account where you do collections with and/or be a real company outside of the country (better and cleaner option). This Financial Trading Company, has its own separated, isolated, environment (the application has is own address and its own database). Via this structure its possible to emit a secondary (and real) customer invoice with, which includes the commission values.

In order words, if the commission is 5%, via the farm application we declare USD 100,- (SRI, Commercial invoice and Customer invoice), and via the trading company USD 105,- (Customer invoice).

3. DB // Auto-apply Commission Rate

We could modify PO values automatically at the time of creating the invoice. In other words, sales enter the normal price on the creation po page and when the invoice is created, the system will apply automatically the additional given commission fee being set via manage customers, for example 5%. The sales representative can sell a Freedom 50cm for USD 0.40, and after invoicing this rate would change to USD 0.42 (incl. the 5% commission rate). As the client will pay you USD 0.40 , the commissions will need to be applied via the deposit page as a cost.

4. PDF Customer Invoice // Auto-apply Commission

We can generate the customer invoice, the PDF itself, the PDF ONLY(!), with a commission % being included. As these commission rates get not stored via the DB (PO-, Invoice-, report values etc), and as we only SHOW this on the PDF, all the values in the system will get shown without the commission fee.

If the user decides to opt for method 4, the commission percentage has to be set in the camp Commission % in Manage Customers.

The percentage commission to be entered in the camp called Commission %. For instance, in the picture above we see the client will be charged a 5% commission on top of the total value of the order.

Last updated