Commission Structure
Commision
A tailored commission structure that allows for dynamic adjustments based on unique sales scenarios or business rules. This system calculates commissions based on specific criteria such as high-value sales, special product categories, or performance targets. It ensures flexibility and fairness, providing sales teams with personalized compensation based on exceptional circumstances or goals, while aligning with the company’s overall objectives.
Commission Tracking
Track commissions based on either item rate or agent rate, supporting multi-level roles like salesperson, team leader, and manager. Handles overrides and referral-based commissions.
Custom Rules & Targets
Define flexible commission structures by role or item. Supports setting personal and group sales targets with automatic incentive calculations once targets are achieved.
Invoice Validation
Ensure commissions are only calculated based on invoice logic—either upon invoice issuance or full payment confirmation. Includes receipt verification and invoice aging tracking.
Real-Time Reports
Access up-to-date commission reports with breakdowns by role, invoice, and target progress. Reports can be exported to Excel for deeper analysis and record-keeping.
Commission Challenges
Solving Sales Commission Pain Points
- Complex and Inconsistent Commission Calculations
Different rules and methods for calculating commissions lead to errors and decreased trust among salespeople.
2. Cumbersome Data Tracking
Manual systems are time-consuming and prone to mistakes, impacting team efficiency and transparency.
3. Unclear Commission-Performance Link
Lack of clear ties between commission structures and individual/team performance lowers motivation.
4. Rigid Commission Structures
Traditional systems struggle to adapt to market changes or special product sales needs.
5. Lack of Transparent Reporting
Salespeople struggle to access clear commission and payment reports, reducing trust and satisfaction.
Workflow Diagram
Commision Workflow Diagram
Type A
Stock-Based Commission
Commission calculated based on stock item’s commission rate
Commission will be capture from Invoice (won’t check payment status)
Required Modules:
Sales Module
Report#1
This report shows Type A commissions calculated automatically at 2% of each invoice amount, without payment verification. It lists all transactions by agent (Amir: RM1,338.80, Brenda: RM1,238.75, Chloe: RM43.40) with a total of RM2,620.95 owed. Used for instant payout tracking in systems that support automatic commission calculation.
Report#1
Type B
Stock-Based Commission
Commission calculated based on agent’s commission rate
Commission will only capture full payment invoice
Required Module:
Stock Module
Sales Module
Report#1
This payment report shows Type B commission calculations, verifying full payments before payout. For two invoices totaling RM 875, it deducts transport fees (RM 25) and excludes Nescafe sales, paying 1% commission (RM 8.50) on the remaining RM 850. Designed for an agent-rate system, it ensures commissions only trigger after payment confirmation.
Report#1
Type C
Agent-Based Commission with Personal Target
Report#1
Commission calculated based on agent’s commission rate
Commission will only capture full payment invoice
Incentive will be calculated once the agent hit personal target sales
Required Module:
Stock Module
Sales Module
Report#1
This Type C commission report shows agent earnings based on full payments and personal sales targets. Agent AMIR earned RM1,567.50 (including a RM200 incentive), while others earned none due to unpaid invoices or missed targets. The report verifies payments via official receipts, tracks invoice aging, and separates base commission from incentives. “StockGroup” highlights possible product-based variations.
Type D
Agent-Based Commission with Group Target
Report#1
Commission calculated based on agent’s commission rate
Commission will only capture full payment invoice
Incentive will be calculated once the agent hit group target sales.
Required Module:
Sales Module
Report#1
The image shows a sales and commission summary by agent. There are three sections: one with no agent (cash sales) totaling RM21,375.00 with no commission, one for AMIR with RM47,400.00 in sales and RM948.00 in commission, and one for BRENDA with RM1,360.00 in sales and RM68.00 in commission. Each section includes receipt and invoice details for the transactions handled..
The image shows a sales and commission report split into two parts. The first part, with no project assigned, records RM45,685.00 in sales and no commission. The second part, under project “ANDREW,” shows RM25,250.00 in sales and RM505.00 in commission. It includes details like dates, companies, and invoice amounts.
Report#2
Type E
Tiered & Referral-Based Commission
Report#1
✔ Multi-level structure (“3 LEVEL COMMISSION”)
✔ Fixed referral rewards (despite varying sale amounts)
✔ Enterprise payment tracking
Commission calculated based on item’s commission rate
Commission will only capture full payment invoice
Different commission rate for each salesperson level (salesperson, team leader, manager)
Overriding commission for team leader & manager when the person under them successfully make a sales.
Incentive will be calculated once the agent hit group target sales.
Additional commission can be calculated for referral
Additional ：
Supplementary software to generate report in excel
Cons :
Separate report for each type of commission:
- Commission report: salesperson, team leader, manager, referral
- Target sales report: team leader, manager
Required Module:
Sales Module
Stock Module
This 3-level commission report shows commission earnings based on full invoice payments. JAMES, acting as both a team leader and referrer, earned a total of RM3,000 from two invoices—one directly from Customer B and another indirectly via ANNIE’s sale to Customer A. ANNIE, the salesperson, earned RM1,200 for the same Customer A sale. CHARLES had no commission as there were no completed sales. The report highlights each person’s role, invoice amounts, and commission breakdown, ensuring only fully paid invoices are included in the calculation.
Report#2
Report#3
Target Tracking:
CHARLES hit 2.5/45 monthly units (1.5 Display + 1 New Machine)
Earned RM45 (likely flat rate per unit)
Referral Credits:
Sales attributed to ANNIE (New) & JAMES(Display)
Type E Features:
Manager-level targets
Product-specific quotas
Team/referral sales counting
2.5 units sold (1 New + 1.5 Display machines) worth RM60K
RM90 commission earned against 90-unit target
Shows product-specific tracking and team/referral credits
Confirms Type E hierarchy with team leader-level reporting
Report#4
Unlock Your Potential Today!
“Elevate your team’s commission tracking with our advanced commission management app! Boost accuracy and streamline your sales operations.
Experience the future of commission tracking – try our SQL Commission Management App now – Start Your Free Demo Today!”
We Serve You Better !
My Software Solution Sdn Bhd is a software consulting firm that mainly focus on business management software, especially accounting software. We provide top notch solution for businesses from various industries in assisting growth and strengthen their business operation.
Office Hours
Closed Sundays | Open All Day
Monday To Friday
Open 9am - 6pm
Saturday
Open 9am - 1pm
Contact
Copyright © 2024 My Software Solutions Sdn Bhd. All Rights Reserved. Web Design.