Enable the Subtract Minimum setting to apply Commission to only the amount above the Minimum Sale amount.
This setting is typcally enabled for use with tiered Commissions where the Commission rate increases with the sales volume.
To create a tiered Commission:
- Create a Commission Table to contain the tiered Commission Formulas.
- In that Table, create the base Commission Formula. The Amount should be the base Commission Amount. Typically, the Minimum Sale for the base Commission is 0. If it is greater than 0, enable Subtract Minimum.
- Create the second-level Commission Formula. The Amount should be the second-level Commission less the base Commission. The Commissions are added together when calculating actual Amounts. For example:
If
Base Commission = 10%
Second-level Commission = 15%
Then
Base Commission Formula Amount = 10%
Second-level Commission Formula Amount = 5%
The second Level Commission Formula Minimum Sale should be the Minimum required for the second-level Commission and Subtract Minimum should be enabled.
- Create a similar Formula for each succeeding Commission level. The Amount should be the current Commission less the amount of the previous Commission. The Minimum Sale should be the Minimum required for the current Commission. Enable Subtract Minimum.
Here is a different way to view the table:
Level / Commission / Sales Volume / Amount / Minimum / Subtract Minimum
Base / 10% / Any / 10% / $0 / Disabled
Second / 15% / $1,000 - $2,499 / 5% / $1,000 / Enabled
Third / 20% / $2,500 - $5,000 / 5% / $2,500 / Enabled
Fourth / 25% / $5,000 - $7,500 / 5% / $5,000 / Enabled
See:
Commission Tables - General Information
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