Automatic Commissions
Overview¶
Thus far, you have taken the time to build out the support system for your commission structure. This included:
- Creating reps and alignments
- Establishing the rep hierarchy and assigning territories
- Defining commission rules for products in collections
Everything has now been set up so that Velocity can do the hard work of calculating commissions for your orders.
Commission Calculation¶
Velocity automatically calculates commissions for orders as they are created within your store front. Velocity will examine each of the following to determine which reps should receive commissions
How Much Gets Paid?¶
First, an order must contain products that belong to a collection that is commissionable. The exact commissionable amount for each product line item in the order is dependent on how the rules were configured for that collection.
Who Gets Paid?¶
Next, Velocity must determine which reps should get paid. By default, Velocity will find the reps assigned to the territory (postal code) associated with the customer who placed the order.
The territory postal code used is first obtained from the order's shipping address, if one exists for the order. Otherwise, the postal code is obtained from the order's billing address.
Note
Postal codes can be manually entered for an order. If a postal code is set manually, it will override the shipping or billing address postal code. Read more about postal code overrides here.
Each rep in the hierarchy for the assigned territory will receive commission for the order according to their level. Keep in mind that each collection can configure different payout percentages and amounts for each level on the alignment, giving you ample flexibility within your commission structure.
Example¶
Jennifer manages a storefront for medical supplies decides to pay commission for a set of consumable products. There are currently 2 products (Eyelid Filler and Skincare Lotion) linked to her Shopify collection named Consumables.
Jennifer also pays out reps at 2 levels within the state of North Carolina:
- Sales Director (Emily Richardson)
- Sales Associate (James Carter)
She also has configured the Consumables collection pay out 5% at the Sales Associate level and 2.5% at the Sales Director level.
An order is received with the following line items:
| Product | Price | Quantity | Total | Commission (Sales Director) | Commission (Sales Associate) |
|---|---|---|---|---|---|
| Eyelid Filler | $50 | 50 | $2,500 | $62.50 | $125.00 |
| Skincare Lotion | $75 | 10 | $750 | $18.75 | $37.50 |
| Total | $3,250 | $81.25 | $162.50 |
When Velocity calculates the commission it will display the commissions according to the calculation above when viewing the order in Shopify.
Problems with Commission?¶
If you don't see commissions being generated for your order, please be sure to check the following.
- Are the products in the order correctly linked to a collection that has enabled commission?
- Does the collection has commissions enabled and are the commission rules correctly defined for it?
- Does the customer on the order have a valid shipping address or billing address with the postal code defined?
- Are territories assigned for the postal code linked to the order?
- Has the alignment been published with the latest territory assignments?
If you still do not see commissions being generated, feel free to contact MedShift support at app-support@medshift.com.