Set up Commission Rules for Value Based Commissions

Objective

This tutorial demonstrates how to create Commission Templates that can be assigned to an employee, using a 'Commission' Wage Type record. Commission Rules are applied to a Commission Template, then, to an employee Wage using the 'Commission' Wage Type. The system will calculate the exact amount that an employee is entitled to, based on a sales Achievement.

This tutorial will show you how to create Commission Templates for Value Based Commission Rules.

In Value Based Rules, the percentage of the commission to be received by the employee is based on a certain amount of sales. For this type of commission, the HR Manager should create different types of calculations based on a progression of value generated by the employee. e.g. if the employee generate in sales an amount from $100 to $1000, then he/she should receive 3% of this value, and the percentage can increase if the second level is reached, e.g. $1001 to $3000, the percentage is 5%.

You can find the setup tutorial for Target Based Commission Rules here.

Prerequisites

  • You are HR-Manager

Click Through

  • Start in HR HUB
  • In the bottom left corner, switch from Overview to Settings
  • Under Compensation, select Commission Templates
  • Click on + New
  • Add the Name
  • Save
  • After saving the record for the first time, the 'Commission Rules' table is available.
  • Select + New Commission Rule
    • Depending on the zoom settings of your browser, this option may be hidden behind the three dots in the top right corner of the table
  • Enter a Name for the Commission Rule
  • Select the Commission Category
    • Type 1 and Type 2 are placeholders which can be customized to your organization's needs
  • Select the Level Definition Value Based
  • Choose the preferred Currency
  • Save
  • Go to the tab Commission Calculation
  • Click on + New Commission Level
  • Check if the Currency is correct
  • Add the Amount From
  • Add the Amount To
  • Add the Commission %
  • Save and Close
  • Repeat this until all your commission rules are covered by Commission Levels
  • When you're done, you can Save & Close the Commission Rule

Result

Below, you can see what a filled out Commission Template for Value Based Commission Rules looks like.

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HR