Overview
So far, you have built out the support system for your commission structure. This included:
Creating reps, teams, and territories
Establishing the team hierarchy and assigning territories
Defining commission rules for products in collections, per team
Everything has now been set up so that Velocity can do the hard work of calculating commissions for your orders.
Commission Calculation
Velocity automatically calculates commissions for orders as they are created within your storefront. Velocity will examine each of the following to determine which reps should receive commissions
How Much Commission?
First, an order must contain products that belong to a collection that is commissionable. The exact commissionable amount for each product line item in the order is dependent on how the rules were configured for that collection.
Who Gets Paid?
Next, Velocity must determine which reps should get paid. By default, Velocity will find the reps assigned to the territory (postal code) associated with the customer who placed the order.
The territory (postal code) used is first obtained from the order's shipping address, if one exists for the order. Otherwise, the postal code is obtained from the order's billing address.
Note: Postal codes can be manually entered (overridden) for an order. If a postal code is set manually, it will override the shipping or billing address postal code. Read more about postal code overrides here.
Each rep in the team will receive commission for the order according to their level in the team's structure. Keep in mind that each collection can configure different payout percentages and amounts for each level, giving you flexibility within your commission structure.
Example Case
Jennifer manages a storefront for medical supplies and decides to pay commission for a set of consumable products. There are currently 2 products (Eyelid Filler and Skincare Lotion) linked to her Shopify collection named Consumables.
Jennifer also pays out reps at 2 levels within the state of North Carolina:
Sales Director (Emily Richardson)
Sales Associate (James Carter)
She has configured the Consumables collection pay out 5% at the Sales Associate level and 2.5% at the Sales Director level.
An order is received with the following line items:
Product | Price | Qty | Total | Commission (SD) | Commission (SA) |
Eyelid Filler | $50 | 50 | $2,500 | $62.50 | $125.00 |
Skincare Lotion | $75 | 10 | $750 | $18.75 | $37.50 |
Total |
|
| $3,250 | $81.25 | $162.50 |
When Velocity calculates commission, it will display the commissions according to the calculation above when viewing the order in Shopify.
Problems with Commission Calculations?
If commission is not being generated for an order, please check the following:
Are the products in the order part of a collection that has commission enabled?
Does the collection have commission rules configured properly?
Does the customer on the order have a valid shipping address or billing address with the postal code defined?
Are territories assigned for the postal code linked to the order?
Has the Team been published with the latest territory assignments?
If you still do not see commissions being generated, feel free to contact MedShift support at [email protected].