Commissions, setup and calculations in AX2012
Commissions in AX2012 have been the Part of distribution and trade, commission is calculated for the sales person at every Sales order level based on the percentage of revenue or contribution Margin.
You need to do the following setups for commissions to calculate.
When the sales order is being invoiced, AX 2012 searches for the related sales representative, item, and customer combination set up in the Commission calculation form. You can setup the Commission Customer group and the commission Item group, the reasons for the setup is because in a business you can sometimes base commissions on Customer sales and sometimes on Items sold. So you have the Customer Group commissions and Item Group commission setup form under the sales and marketing setup Commissions node.
The commission calculation form set up relationships between the combinations of items, customers, and sales representatives to define the commission rate an employee is paid from a sale, and for groups of sales representatives, items and customers. In this form you can also setup if the commission is before or after the line discount or total discount. The basis of calculation if it should be on the total revenue or just the margin. You can also give validity period from when to when the commission calculation is active.
Commission posting is a form where you can setup the posting accounts. When a sales order is
Invoice-updated, the commission amount on the voucher is debited to the main account specified on the Commission account, and then it is credited to the main account specified on the Commission offset.
Sales group is the most important of all the setups, The Commission sales group (CSG) specifies those employees that are eligible to receive a commission when a customer associated with the relevant sales group buys certain items.
You assign the Customer group and the sales group to the customer master, AX 2012 calculates sales commissions at the sales line level when a sales order is invoiced.
When the sales order is being invoiced, Microsoft Dynamics AX 2012 searches for the related sales representative, item, and customer combination set up in the Commission calculation form. The header View of the sales order will default the Sales group and the customer commission group. We can also assign the sales group at each sales order line also, if you want the sales group different in each line.
Once the sales order in Invoiced in the Invoice Journal action pane you can click on the commission and view the commission split between the Sales representatives, also you can view the commission voucher generated for that sales orders by viewing the vouchers.
About the Author
With 13 years of experience in ERP, specialising in AX functionality across versions , Solution designing ,Project Management and delivery.
Rohan also has special interests in reading about new business processes and features along with understanding their viability. He also enjoys spreading this message across through his blogs.