Sales Commission is how companies pay their Sales Associates. There are different structures for these commissions, leading to varying compensation levels. Payments can be made weekly, biweekly, monthly, or as a one-time payment. Typically, commissions are paid at the end of the specified period, but there can be delays if companies wait for client payments before paying their sales team.
The HR for Dynamics solution can calculate sales commissions based on an employee's sales achievements.
Honag Inc specializes in Shift Management App on Dynamics365. Honag Services USA, an arm of Honag Inc, has a strong sales presence across USA. Sales Associates of Honag Services USA sell both Shift Management App licenses and the necessary consultancy services to end-customers.
The Sales Associates of Honag Services USA are on a bi-weekly payroll frequency. For the ease of sales commission calculation, the associates are paid sales commissions only after the end of quarter. To be eligible for sales commission as per company policy, the customer must have settled their invoices in full on or before the last day of the Quarter.
An example Commission structure is explained below. In the click-through documentation, you will also learn how to set it up.
Commission Structure:
Product sold: License
Target based?: Yes
Quarterly Target: 100,000 USD
Rules in simple words:
In the structure seen below, a Sales Associate misses out completely on earning any sales commissions, if he only brings in less than 50000 USD of license sale revenue.
However, he starts receiving commissions as soon as he crosses the 50k mark.
Note: It is not possible to setup decimals in the system. System rules when setup as seen below, will make an employee eligible for 1% commission as soon as he hits 50,000 USD.
| Target Achievement | % commission |
| 0-50% (system automatically considers the range 0-50,000 USD, because of 100k target) |
No commissions paid |
| 50-75% | 1% |
| 75-100% | 2% |
| 100% and above | 3% |
Same example without setting a pre-defined target:
Product sold: Services
Target based?: No
It is also possible to setup rules without a target. In such cases, the range with currency value is setup like seen below.
| % commission | Sale volume |
|
No commissions paid |
For amounts <10,000 USD |
| 1% | 10,000-50,000 USD |
| 2% | 50,000-100,000 USD |
| 3% | 100,000 USD and above |
There is also another way to calculate commissions. This rule engine works only for Target based.
Commission Structure:
Product sold: License
Target based?: Yes
Quarterly Target: 100,000 USD
Rules in simple words:
In this rule, you can setup that an employee receives a flat amount of money on every % achieved on his target. This means when he reaches 10%, 10 USD is applied 10 times. End result the employee gets a commission of 100 USD.
| Target Achievement | Commission Amount per % reached |
| 0-50% (system automatically considers the range 0-50,000 USD, because of 100k target) |
10 USD |
| 50-75% (system automatically considers 50,000-75,000 USD) |
20 USD |
| 75-100% (same logic applies) |
30 USD |
| 100 % and above (same logic applies) |
40 USD |