How to Create & Update Commissions

 

On this page

Step 1 - Create base rates

Step 2 - Apply rates to reps

Step 3 - Choose to include or exclude services

Step 4 - Set a Maximum Commission (Threshold)

Step 5- Create a Margin Table

Step 6 - Add Client Rates

Step 7 - Set annual sales goals

Manually add a commission

Change commission rates

Recalculate commissions

FAQs

Step 1 - Create base rates

To create your team's base rates:

1. Click your Profile icon (top right corner of commonsku) > Settings > Company Settings
2. Click the Commissions section
3. Click the Commission Rates tab in the pop-up window
4. Click + Add new 
5. Type the rate's name in the "Label" field 
6. In the "Base Rate" field, type the percentage as a whole number
7. Click the drop-down in the "Type" field and select if the rate is based on the Margin (profit) or Sales (dollar value sold)
8. Click Add
9. Follow steps 5 - 8 to add more rates (optional)
10. Click Done

To delete your team's base rates:

1. Click your Profile icon (top right corner of commonsku) > Settings > Company Settings
2. Click the Commissions section
3. Click the Commission Rates tab in the pop-up window
4. Click the icon next to the base rate you wish to remove
5. In the pop-up, select Delete

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Step 2 - Apply rates to reps

Once you've created your team's base rates, you'll need to assign rates to the individual reps. You can set rates based on if a rep is a project's client rep, order rep, or client and order rep.

To assign the commission rate:

1. Click your Profile icon (top right corner of commonsku) > Settings > Company Settings
2. Click the Commissions section
3. Click the People tab in the pop-up window
4. Use the drop-downs to select your rep's commission rates under the "Client Rep Commission," "Order Rep Commission," and/or "Order+Client Rep Commission" columns
5. Click Done

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Step 3 - Choose to include or exclude services

By default, margin/commission calculations exclude fulfillment, freight, and shipping charges. 

To include fulfillment, freight, and shipping in your calculations:

1. Click your Profile icon (top right corner of commonsku) > Settings > Company Settings
2. Click the Commissions section
3. Click the Excludes tab in the pop-up window
4. Select "Included" or "Excluded" for Freight, Fulfillment, and Shipping
5. Click Done

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Step 4 - Set a Maximum Commission (Threshold)

The Maximum Commission (Threshold) limits the amount of commission payable on a project. For example, if a project's client and order rep were each due 30% commission, but the threshold was 50%, the rep's rates would drop to 25% each.

To set a maximum threshold:

1. Click your Profile icon (top right corner of commonsku) > Settings > Company Settings
2. Click the Commissions section
3. Click the Maximum tab in the pop-up window
4. Enter a value in the "% of margin "box
5. Click Done

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Step 5 - Create a Margin Table

The Margin Table uses a multiplier to increase or decrease a rep's base rate depending on a project's final margin.

To create a margin range:

1. Click your Profile icon (top right corner of commonsku) > Settings > Company Settings
2. Click the Commissions section
3. Click the Margin Table tab in the pop-up window
4. Click + Add New
5. In the "Multiplier" field, enter the multiplier for the lowest range
6. Click + Add New again
7. In the "Margin Minimum" field, enter the minimum margin amount required for the second margin range (this will become the maximum amount for the previous range)
8. In the "Multiplier" field, enter the multiplier for the second margin range
9. Click Add
10. Continue to add margin ranges as needed (optional)
11. Click Done

To delete a margin range:

1. Click the icon next to the margin range you want to delete
2. In the pop-up window, select Delete
3. Click Done

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Step 6 - Add Client Rates

Client Rates use a multiplier to increase or decrease a rep's base rate depending on the client.

To create a client Rate:

1. Click your Profile icon (top right corner of commonsku) > Settings > Company Settings
2. Click the Commissions section
3. Click the Client Rates tab in the pop-up window
4. Click + Add New
5. Type the rate's name in the "Label" field 
6. Enter a multiplier in the "Multiplier" field
7. Click Add
8. Click Done

To assign a client rate:

1. Click your Profile icon (top right corner of commonsku) > Settings > Company Settings
2. Click the Commissions section
3. Click the Client Rates tab in the pop-up window
4. Click Assign Client Rates
5. Type a client's name in the "Search for a client" field
6. Click Search
7. Locate the client you'd like to assign the rate to, then select the rate from the drop-down menu beside their name
8. Click Done

You can also assign client rates through the client's page or the Clients tab.

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Step 7 - Set annual sales goals

The Sales Goal table uses a multiplier to increase or decrease a rep's base rate depending on how they perform against their annual sales goal.

To create a percentage attainment range:

1. Click your Profile icon (top right corner of commonsku) > Settings > Company Settings
2. Click the Commissions section
3. Click the Sales Goal tab in the pop-up window
4. Click + Add New
5. In the "Multiplier" field, enter the multiplier for the lowest range
6. Click + Add New again
7. In the "% of Goal" field, enter the minimum attainment amount required for the second range (this will become the maximum amount for the previous range)
8. In the "Multiplier" field, enter the multiplier for the second range
9. Click Add
10. Continue to add percentage attainment ranges as needed (optional)
11. Click Done

To assign sales goals:

1. Click your Profile icon (top right corner of commonsku) > Settings > Company Settings
2. Click the Commissions section
3. Click the Sales Goal tab in the pop-up window
4. Click Assign Sales Goals
5. In the pop-up window, enter the annual sales goal amount beside each rep
6. Click Done
7. Click Done again

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Manually add a commission

To manually add a commission to a project:

1. In the project > commissions, click Actions
2. Select Add Commission
3. Click the drop-downs to choose the sales pre, type (order rep or client rep), source (margin or subtotal), rate or amount, notes (optional)
4. Click Add

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Change commission rates

Changes will only affect commissions for future projects; all current commissions will remain the same. Follow the directions below to update commissions on an existing project.

 

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Recalculate commissions

If commission settings change after a project's commission has already been calculated, commonsku does not automatically update that existing commission.

When commonsku detects that the project's saved commission is different from what would be calculated using the current commission settings, you can recalculate it:

1. Open the project.
2. Go to the Commissions tab.
3. Click Actions.
4. Select Recalculate Commissions.

commonsku will recalculate the project's commissions using the current commission settings.

Don't see Recalculate Commissions?

The option only appears when:

• You have permission to recalculate commissions.
• You are viewing the project's Commissions tab.
• commonsku detects that recalculating would change the existing commission.

 

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FAQs

If I change my commission settings after creating an invoice, will the project use the old or new commission rate?

It depends on whether the commission has been finalized.

If the commission is still estimated

If you've created an invoice but have not yet added bills, the commission is still considered an estimate. Any changes you make to your commission settings will be reflected when you later create POs or add bills.

For example:

• Create an invoice.
• Change the commission rate.
• Create POs or add bills.

The project will use the new commission rate.

If the commission has already been calculated

Once the commission has been calculated, changing your commission settings will not automatically update the existing commission.

If commonsku detects that the saved commission is different from what would be calculated using the current commission settings, go to:

Project > Commissions > Actions > Recalculate Commissions

You must have the Recalculate Commissions permission enabled to use this option.

If Recalculate Commissions does not appear, commonsku does not currently detect a difference that requires recalculation.

 

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