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Sales Commission Payments
02-14-2018, 02:52 AM,
#1
Sales Commission Payments
Looking for advice on sales commission payments...

The way I see it I have two choices:

1 > Use Bank Account Payments Entry (Payments.php) and make payments against GL Account(s).

2a > Add Salesman as a Supplier/Vendor
2b > Create Invoices
2c > Enter Payments
2d > Allocate Payments

It seems option #2 is the best and correct way to do this even though the salesmen are not truly a Supplier/Vendor.

How are the rest of you doing this?
https://www.linkedin.com/in/eclipsepaulbecker
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02-14-2018, 07:57 PM,
#2
RE: Sales Commission Payments
Well there are two scenarios that we have, either the sales person is an employee in which case their commission is taxable income and goes through the PAYE system as with the rest of their income, or they are a self employed contractor, in which case they are technically a supplier and should be producing invoices to put through the purchase ledger.

Though I realise this is another area where there is a difference in culture either side of the Atlantic Smile

Tim
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02-14-2018, 10:22 PM, (This post was last modified: 02-14-2018, 10:25 PM by VortecCPI.)
#3
RE: Sales Commission Payments
Ah yes... I should have mentioned they are independent and responsible for their own taxes and/or we issue 1099s. Therefore they ARE a Supplier/Vendor so thank you for clearing my foggy head.

However... The salesman do not invoice us... We track sales and use a custom report in webERP (thank you) to show what is due. So WE determine commission on the last day of each month and payment is due immediately. So technically there is no real invoice -- Just a distribution of sorts or "Payment Due".

So I guess I could run the reports and create the invoices and go from there. Seems like more work but it gives the granularity I want in webERP.
(02-14-2018, 07:57 PM)falkoner Wrote: Though I realise this is another area where there is a difference in culture either side of the Atlantic Smile

Tim

Working with the ECi M1 ERP Australia people and product has helped! I have become used to things like authoriSe, cheQUE, supplier, etc.
https://www.linkedin.com/in/eclipsepaulbecker
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