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Commission

Overview

When an order comes into Velocity, four things are used to calculate commission (assuming no override or ownership for that customer and product):

  1. Each line item on the order

  2. The Program or Programs each line item belongs to

  3. The zip code for the order

  4. The commission strategy for each Program

The basic commission calculation flow:

  1. An order is placed

  2. Gather zip code and Program information

    • Zip code:

      • If it is a digital order, use the billing address zip code

      • If it is a physical order, use the shipping address zip code

    • Programs:

      • Get the Programs each line item applies to

  3. For each Program, determine the sales rep responsible based on the zip code's territory assignment in the linked Sales Team

    • This is the lowest level rep

  4. Calculate the commission based on the Program's commission strategy

    1. Determine the total commissionable amount

    2. Calculate the commission for the lowest level rep

      1. If that rep has a manager, calculate their commission

      2. Repeat until commission for all rep levels has been calculated

Commission Strategies

Each Program is assigned a commission strategy used to calculate commission.

  • Percentage: the commission paid out at each level is a fixed percentage of the commissionable amount.

  • Customer Group Percentage: the commission paid out at each level depends on which group the customer belongs to.

  • Base Price Commission: commission is calculated based on the total amount paid for an item relative to a configured base price.

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