Commissions

Overview

When an order comes into Velocity, there are four things that are used to calculate the commission.

1. Each line item on the order
2. The category or categories that each line item belongs to
3. The zip code for the order
4. The commission strategy for each category

The basic commission calculation flow looks something like this:

1. The order comes in

2. Gather zip code and category information

   • Zip code:
     • If it is a digital order, we use the billing address zip code
     • If it is a physical order, we use the shipping address zip code
   • Category:
     • Get the categories that each line item applies to

3. For each category, determine the sales rep responsible based on the zip code ownership from the alignment

   • This is the lowest level rep

4. Calculate the commission based on the category's commission strategy

   • This first determines the total commissionable amount
   • This will then calculate the commission for the lowest level rep
     • If that rep has a manager, calculate their commission
     • Repeat until commission for all rep levels have been calculated

Commission Strategies

Each category is assigned a commission strategy that is used to calculate commission.

• Percentage - the commission paid out at each level is a fixed percentage of the commissionable amount.
• Customer Group Percentage - the commission paid out at each level depends on which group the customer belongs to.
• Base Price Commission - commission is calculated based on the total amount paid for an item relative to a configured base price.

Commission Overrides

Customer Commission Overrides

In the Customer Details page, there is a section for Commission Overrides. This is often used when a customer works with a rep directly and commission should be directed specifically to that rep. There are two types of commission overrides you can assign to customers:

Fixed Percentage

A Fixed Percentage override is where you are able to set commission rates and levels for specific sales reps within each category. Setting a fixed percentage commission override on a customer will replace the commission coming from the alignment.

Dynamic Link

A Dynamic Link is where you can assign a customer who lives under one rep's hierarchy to another's. With this strategy, commission percentages must be adjusted on the category level and will not replace the commission percentage coming from an alignment.

Rep Commission Overrides

In the Rep Details page, there is a section for Commission Overrides. For an individual Rep, there are sections for each category showing the commisison levels that are set for them at each level of the alignment hierachy within that category. Clicking on Set Override will allow you to customize the commission settings for them at the respective category and alignment hierarchy level. If no overrides are set, this page will show the default commission levels for the rep. By setting an override you extend the settings made by the alignment. This is useful for special deals made with reps that should get different commissions on specific categories.

Commission Statistics

Overview

Commission Stats are available in the Rep Details page. You are able to see the commission a rep has received in the following formats:

• Percentage - see what percentage of commission is made for a rep in a category relative to other categories
• Amount - see total dollar amount of commission made for a rep in each category
• Timeline - see how much commission was earned over time in each category

There is also a section of Related Orders showing which orders the commission came from. The listed orders are the data source for the graphs above. Applying filters will change the number of related orders shown.

Filters

You are able to filter the commission statistics shown by the following fields:

• Order Date
• Category
• Approval status of orders
• Status of orders

This section can be used to customize the charts for your specific business rules.