UC-04 · Percent of margin
Commission can come from gross profit instead of revenue. The Percent of Margin method applies the rate to the line’s gross profit (sales − cost).
Expected result: on a line with $5,000 sales and $3,000 cost, at 10% of margin, the commission is $200.
Setup
- Create a plan (as in UC-01).
- In Rate Rules, add a rule with Calc Method = Percent of Margin and Rate Pct = 10. (Optional: set Min. Gross Profit % to keep low-margin lines out.)
- Assign one agent to the customer at 100%.
Post the invoice
Post a sales invoice whose commissionable line has sales of $5,000 and a posted cost of $3,000.
Result
| Quantity | Meaning | Value |
|---|---|---|
| Sales | line amount | 5,000.00 |
| Cost | posted cost (item ledger) | 3,000.00 |
| Gross Profit | sales − cost | 2,000.00 |
| Rate | 10% | |
| Commission | GP × rate | 200.00 |
The commission ledger entry shows Calc Method = Percent of Margin, Gross Profit Amount 2,000.00, Rate Pct 10, and Commission Amount 200.00.
Notes
- Cost basis. The margin uses the item’s posted cost at the time of posting (the item-ledger cost), not the current item-card cost. The commission therefore reflects the real cost of the goods sold.
- If a line’s gross-profit % is below a rule’s Min. Gross Profit %, the line earns nothing.
→ Related: Commission plans → Calculation methods