This guide concentrates on setting up volume-based provision groups. You can find more information about other provision settings and provision calculation in general in Provision Calculation.
In the volume-based provision model the sales person gets provision from all the products in a sales order based on one base provision percent. The model can be extended by introducing exceptions to the model. This could mean that a different provision percent is paid for certain products, or that some products are set internal and can therefore be left out of the provision calculation.
To ensure that the volume-based provision model and provision reporting will work with the wanted users, some initial things should be checked in User Settings and in Additional Settings.
- The users that will get provision must be in a sales group. If a user is not yet in a sales group, you can select one for them in Settings → Users by editing the user’s settings.
- The setting “Show value period” must be activated for sales orders in Additional Settings.
Furthermore, if you plan to leave internal products out of the provision calculation, you must activate the checkbox Internal Product for the wanted products in the product’s settings.
Creating the Provision Group
Creating and setting up the provision groups is done in Settings → Provision Groups.
You can create a volume-based commission group by first clicking the New provision group button. Give the new group a name and set the type as Volume Based Commission.
The new group will appear in the list and the actual settings can be done next by clicking Edit at the end of the row. You can use the following settings:
- Base Percent used with all products – The model’s base provision percent, which is the only mandatory setting. The percent is used with all the products in a sales order, unless otherwise specified with exceptions.
- Use the product’s provision percent in calculation – By activating this setting the product row’s provision is calculated by multiplying the base percent described above with the provision percent set in the product’s information (eg. 0,02*0,05 = 0,001). (NB! To see this setting you must activate “Show provision” and “Show product provision” for sales orders in Additional Settings. If you do not need this setting, it is recommended to keep these additional settings disactivated.)
- Don’t calculate provision for internal products – With this setting, the products that have been set internal (the “Internal Product” checkbox in the product’s settings) will be left out of the provision calculation. (Tip: You can change the name of the Internal Product field in Field Translations to eg. Not in Provision Calculation.)
- Don’t calculate provision for recurring products – With this setting, the products that have been set “Period Chargeable” in the product’s settings, and which are on a sales order that is used for recurring invoicing, will be left out from the provision calculation.
More detailed exceptions can be created in the sections Agreement Period Exceptions and Product Exceptions:
- Agreement Period Exceptions – Agreement period is a row-level field which can be activated for sales orders in Additional Settings (Show Agreement Period). If agreement period is in use, you can create exception rules to change the provision percent based on the value of the agreement period. The exception can apply for all sales orders or just the sales orders of a certain type.
- Product Exceptions – Exceptions can be tied directly to products with product exceptions. This way a certain product will always have their own provision percent. The Price field can be optionally used to specify the lowest price at which a product should be sold in order to apply the exception percent.
Please note, that there is a hierarchy between the setting sections: the settings made in Base Provision Percent section do not apply for the rows and products that are affected by the exceptions determined in Agreement Period Exceptions or Product Exceptions. Product exceptions override all the other settings.
After creating and finishing the provision group, remember also to add the needed users to the group. This is done in User Provision Groups (for more information, see Provision Calculation).
A user can get volume-based provision if they are in a volume-based provision group and if they are the assignee of a sales order. Only one user can get provision from a sales order.
Another thing on sales orders that affects provision is the row’s value period, which acts as a coefficient for the row’s provision. By default, the value period is 1, but if you change it to eg. 2, the provision will be paid double.
Other fields of the sales order that affect the provision reporting are Due Date and Status – the due date determines the month for the provision, and the sales order must have a status that indicates a closed case, like Approved or Delivered, so that it shows in the reports.
Custom Reports for Volume-Based Provision
You can report volume-based provisions with certain custom reports made for the model. The reporting permissions are granted user-specifically: the permission to report a certain provision group is granted in Provision Group Permissions and permission for custom reports in Custom Report Permissions (for more information, see Provision Calculation).
You can use the following reports with the volume-based provision model:
- Provisiotapahtumat [GLOBAALI] – Engl. Actualized Provisions [GLOBAL]. You can report all provision groups and models at the same time with this report. The report specifies all the sales order rows that accumulates provision and shows all kinds of information: eg. the sales person, the account, the product, the row’s taxfree sum, provision amount, the due date…
- Provisiot – provisioryhmittäin (PM: Volume provisio) [GLOBAALI] – Engl. Provisions – By Provision Group (PM: Volume Provision) [GLOBAL]. The report makes a summary from the selected users’ provisions on the given time frame. Does not include user specification.
- Provisiot – provisioryhmittäin (PM: Volume provisio) [GLOBAALI] Tyypeittäin – Engl. Provisions – By Provision Group (PM: Volume Provision) [GLOBAL] By Type. Functions similarly to the one above.
- Provisiot – provisioryhmittäin (PM: Volume provisio) [GLOBAALI] Tyypeittäin (Omat) – Engl. Provisions – By Provision Group (PM: Volume Provision) [GLOBAL] By Type (Own). A summary about the users own provisions on the given time frame.