Sales Commission: How to Manage it in Candela Retail Software
Sales commission is the amount of extra money that a salesperson earns based on the number of sales s/he makes. While you need to keep an eye on the salespersons who can hurt sales, you also need to encourage efficient salespeople. Commission-based sales are one of the key ways to incentivize your salespersons to make an effort to increase sales. Sales commission structures vary from business to business and depend on how the employer wants to reward the salespeople.
There are different ways in which retailers or wholesalers can calculate sales commission. Let’s look at some of the scenarios listed below:
• There isn’t a pre-defined commission structure or percentage. And the commission percentage is decided by the employer at the time of distributing commission.
• There is a pre-defined commission structure with a certain percentage that works for all salespeople.
• There is be a different pre-defined structure for each salesperson, based on past performance.
• The sales commission for each product is different.
In Candela retail management system, you can handle all these scenarios according to your personal preferences or business requirements.
Let’s look at how Candela handles commission-based plans for salespeople!
The first step, obviously, is to define your salespersons in the system. If you are using Candela, you already know how easy it is to define employees and designate them as salespeople. For a refresher, let’s have a look at the employees screen:
From the menu, select Configuration>Store Definition
Now click the cancel button to put the screen in edit mode and select your store whose employees you want to define, and click the Employees tab
Enter details of the employee
From Employee Type drop-down, select Salesperson
And Mark the checkbox Set as Salesperson. Save
To be able to use the salesperson related features in Candela, you need to make the following configurations on the Configuration>System Configuration>Sales tab:
‘Enable Salesperson field’ mark this checkbox to enable the salesperson field on the sales and return screen.
‘Restrict salesperson Selection checkbox.’ When the salesperson commission is based on the number of sales, it is important that the salesperson is selected before the invoice is saved. To restrict salesperson selection in Candela, mark the checkbox ‘Restrict salesperson Selection.’ Now the system will not allow the cashier to save the invoice without a selection of the salesperson
To map different salespersons for each product., mark the checkbox ‘item-wise salesperson’.
When There Isn’t a pre-defined commission structure or percentage
If you don’t want a predefined commission structure, you don’t need to do any more configurations.
On the sales and return screen, when the salesperson help button is clicked, all employees ‘set as salesperson’ will appear in the Employees Help screen.
Clicking the Load button will select the salesperson and s/he will be attached to the sales being made.
To calculate the salesperson’s commission, go to Reports>C-Sales reports>C-12 Salesperson wise sale report, select the salesperson and Generate Report.
The report will show details of the sales made by the selected salesperson within the selected time period.
You then calculate the sales commission based on sales.
When There is a Pre-Defined Commission Structure with a Certain Percentage
Candela RMS also gives you the option to pre-define the sales commission rate. This makes things easier as the system will automatically calculate the commission according to the defined percentage.
Let’s see how to do this.
Configure Candela for predefined Commission rate
Go to Configuration>System Configuration>Sale tab
Mark the checkbox ‘Manage Salesperson Commission’. Update.
When the checkbox is checked, a new field, ‘salesperson commission’ will appear on the employees tab. Select the salesperson from the grid and enter the commission percentage. Update
Defining Product-wise Salesperson Commission
If you want to configure different commission rates for various products, you can easily do so.
Go to Utilities>Product Utilities>Set Item Wise Sale Person Commission
Note: (Make sure the Item wise sale person commission screen is enabled on the group rights screen. Otherwise you won’t be able to see it).
On the Item-wise salesperson commission screen, add commission (in value or percentage by) in the salesperson commission field, and select products.
All selected products will load in the grid with the commission. Update
REMEMBER: If an item-based commission exists for a certain product, the system will give preference to it and will apply the items based commission instead of salesperson commission
Salesperson Wise Sale Report
For the pre-defined commission structure, the system will automatically calculate the commission for each salesperson and it will be reflected in the salesperson wise report.
Go to Reports>Sales Reports>C-12 Salesperson wise report
On the criteria screen, select the salesperson and other criteria like date, line items, etc., and click the Generate Report button.
Sales commission is an important strategy for encouraging your sales team and increasing sales. Candela RMS makes it easy to apply and calculate sales commission both with and without pre-defined commission percentages. You can Configure the sales commission feature according to your requirements.
Are you using the sales commission feature in Candela? How do you prefer to configure it? Share your thoughts in the comments section below.