Using Commissions and Commission Adjustments

improveit 360 has two objects that you will use to manage your teams' commissions and commission payouts, They are the Commissions and the Commission Adjustments objects.  Commissions represent a record of the commission itself with the total amount to be paid to the Staff member. Commissions also house additional data like the Ready to Pay amount, the Adjusted Amount, the Total Paid to the Staff member so far, and the amount still owed to the Staff member.   

Commission Adjustments are the Credits and Payments made to a Staff member in relation to a specific Commission record. These Commission Adjustments are most often used to represent Payments to Staff, but you are able to use the Commission Adjustment to record other transactions, like a Bonus amount being added to a Commission, or a Deduction based on an audit of the Sale. 

Note: There are no automations on the Commission Amount field, or the Ready to Pay field out of the box. Watch this 7-minute video to learn more: 

Step 1: Create a Commission on the Sale record to use for this exercise. Set the Commission Amount for 500.00 and be sure to select a Staff member. Set the Ready to Pay amount to $250.00 

Note: If you would like the Ready to Pay field to be automatically calculated and updated based on Sale Status, please talk with a member of our Solutions team. 

Step 2: Create a Commission Adjustment that represents a payment of $250.00. Select “Payment” for the Adjustment Type and select “Staff Payment” for the Type Detail. Then Save the Commission Adjustment.  

From the Sale record, create a new Commission from the Commissions related list component on the right. 

Be sure to select the appropriate Staff member (this is typically Sales Rep 1 from the Sale record). 

 

Enter the appropriate Amount for this Commission and the total that should be Ready to Pay at this time, then click Save. 

From the Commission record, create a new Commission Adjustment from the Commission Adjustments related list component on the right. 

As the Ready to Pay amount is currently $250, we will enter this Amount for the Commission Adjustment. Choose a Type of "Payment" and a Type Detail of "Staff Payment." 

I've also entered an Adjustment Memo which includes which Pay Period this adjustment will be paid out during. 

Note that the Adjustment Type and Type Detail are dependent picklists. These values can be customized, see also: Working with Dependent Picklists 

 

When I choose "Payment" as the Type value, the appropriate Type Detail values will appear: 

 

Versus, when I choose a Type value of "Credit" the Type Detail values are displayed:

Once we have Saved the Commission Adjustment, navigate back to the Commission record by clicking on the Commission Name. 

Note: The Amount Paid to Staff of the Commission record has been updated to reflect the total Commission Adjustments made to this Commission. 

If your team would like to automate the process of calculating Commissions, updating Ready to Pay amount, and automating the creation of Commission Adjustment records, reach out to a member of our team. We offer Custom Commission Calculation Projects starting at $2,000.