What is Processing Commissions and Why should I do it?

EthoTech Admin -

Article ID: KB0050

The Processing Commissions routine is used to pay commissions to salespeople and is executed from the Process Commissions window. From this window you may print a preview report to review the documents that will be included in the commission processing run.

To ensure the integrity of commission data, it is essential that the Process Commissions routine is executed for every commission check that is processed. Failure to run this routine will leave commission data in an editable, and thus vulnerable state.

When commissions are processed for a salesperson, the following actions occur:

  • The salesperson’s commissions are marked Processed and are no longer editable.
  • A salesperson commission run summary record is created for the salesperson’s total commission amount.
  • The salesperson’s total commission amount is added to the total commission run summary record.
  • If the salesperson is set up to create GL, Payables, or Payroll transactions and the salesperson’s total commission amount is not zero, an unposted transaction for the salesperson’s total commission amount is created in the appropriate batch:
    • GL - an unposted general journal entry is created for the salesperson's total commission amount, using the salesperson's GL accounts.
    • Payables - an unposted voucher is created for the vendor assigned to the salesperson, for the salesperson's total commission amount, using the salesperson's GL accounts. An invoice is created if the total is greater than zero ($0); otherwise, a credit memo is created.
    • Payroll - an unposted transaction is created for the employee assigned to the salesperson, for the salesperson's total commission amount, using the salesperson's payroll code, and un unposted general journal entry is created for the salesperson's total commission amount, using the salesperson's GL accounts.
  • The salesperson’s processed commission records will be updated with the Date Commission Paid entered on the Process Commissions window. Any Dynamics GP transaction created during commission processing will use this date as the document date. 

Upon execution of the Process Commissions routine, a processing run summary report, a salesperson processing run summary report, and a list of the processed commission documents will be generated. Once commissions are processed, they are no longer editable in the Commission Plan Entry window. 

Please NOTE: The Process Commissions step cannot be undone, so make sure all commissions are correct and a database backup has been performed prior to processing.

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