Creating a Commission Plan

A plan says what percentage someone earns and from when. One plan can cover a whole team, and any individual can sit on it at their own rate.

StepsCopy Anchor Link

1. Open Sales → Commission Plans and click New plan.
2. Give it a Plan name that says who it's for — "Route reps — 2.5% of collections" is more useful in six months than "Plan 1".
3. Commission is paid on is fixed: net sales excluding tax, less returns. There's no choice here on purpose — a margin-based rate would show the person earning it what the business makes on each item.
4. Choose the Rate shape:
   • Flat — one percentage on everything. Type it as a percentage, e.g. 2.5.
   • Slabs — a rate that grows with sales. Fill in each band's From, Up to and Rate %. Leave the last band's Up to empty to mean "and above".
5. Set Effective from. The plan applies to periods from this date onwards. Effective to is optional — leave it blank for an open-ended plan.
6. Leave Status on Active. An inactive plan is ignored by settlement runs.
7. The What this pays card on the right recalculates as you type. Enter a realistic month of collections and check the number looks like what you intend to pay.
8. Save from the amber bar at the bottom of the screen.

How slabs actually payCopy Anchor Link

Each band's rate applies only to the sales inside that band — not to the whole amount. With 2% up to 500,000 and 3% above it, someone who collects 700,000 earns:

• 2% on the first 500,000 = 10,000
• 3% on the next 200,000 = 6,000
• Total 16,000

This matters: it means crossing a threshold never reduces someone's take-home. Selling one rupee more always pays a little more, never less.

Adding people to a planCopy Anchor Link

1. Open the plan from Sales → Commission Plans.
2. In People on this plan, type the person's username and click Add person.
3. Leave Rate override % blank to use the plan's own rate. Fill it in when one person is on a different percentage — a senior rep on the team plan at 3% instead of 2.5%, say.
4. Remove takes someone off the plan from today. Their past statements keep the rate they were approved with.

A person can only be on one plan at a time. If you try to add someone who's already on another plan, the message names the plan they're on so you can decide which one is right.

Changing a plan laterCopy Anchor Link

Editing a plan changes what future runs pay. It never changes a month you've already approved — the rate that was applied is frozen onto each statement at approval, so history can't be rewritten by a rate change.