| # Commissions and rebates calculation examples The following grades are explained: Example 1: Grade by amount Example 2: Grade by quantity - Maximum limit Example 3: Grade by amount - Calculation method net Example 4: Grade by amount - Profit percentages Example 5: Grade by amount - Parent relation Example 6: Grade by amount - Cumulative agreement The following agreement parameters can be found in the Commission Agreement - Grades (tdcms0635m000) session and the Rebate Agreement - Grades (tdcms0635m100) session: Grade by Quantity/Amount Grade Unit Grade Calculation Commission Over/ Rebate Over Grow Commission Over/ Grow Rebate Over Cumulative Agreement Example 1: Grade by amount
Agreement
To Amount | Prof Perc | Commission Percentage over Grade | Growing Percentage over Total | Fixed Amount | Maximum Limit
--- | --- | --- | --- | --- | ---
1000 | 0.00 [%] | 1.00 [%] | 0.00 [%] | 0.00 | 0.00
2000 | 0.00 | 2.00 | 0.00 | 0.00 | 0.00
5000 | 0.00 | 4.00 | 0.50 | 0.00 | 0.00
10000 | 0.00 | 5.00 | 1.00 | 0.00 | 0.00
25000 | 0.00 | 5.00 | 1.50 | 0.00 | 0.00
A relation closed an order of 12,500.
Calculation | Commission Perc. | Commission
--- | --- | ---
1,000 * 1% | grade 0-1000 | 10
1,000 * 2% | grade 1000-2000 | 20
3,000 * 4% | grade 2000-5000 | 120
5,000 * 5% | grade 5000-10000 | 250
2,500 * 5% | grade 10000-25000 | 125
Total commission | - | 525
Calculation | Growing Percentage | Total Commission
--- | --- | ---
12,500 * 1.5% | 187.5 | 712.50
Example 2: Grade by quantity - Maximum limit
Agreement
To Quantity | Prof Perc | Commission Percentage over Grade | Growing Percentage over Total | Fixed Amount | Maximum Limit
--- | --- | --- | --- | --- | ---
10 | 0.00 [%] | 1.00 [%] | 0.00 [%] | 0.00 | 0.00
20 | 0.00 | 2.00 | 0.00 | 0.00 | 0.00
50 | 0.00 | 4.00 | 0.50 | 0.00 | 150.00
100 | 0.00 | 5.00 | 1.00 | 0.00 | 200.00
250 | 0.00 | 5.00 | 1.50 | 0.00 | 400.00
A relation closed an order of 200 jeans at the price of 100 each.
Calculation | Commission Perc. | Commission
--- | --- | ---
10 * 100 * 1% | grade 0-10 | 10
10 * 100 * 2% | grade 10-20 | 20
30 * 100 * 4% | grade 20-50 | 120
50 * 100 * 5% | grade 50-100 | 250
50 * 100 * 5% | limit 250-200 | -50
50 * 100 * 5% | grade 100-250 | 500
50 * 100 * 5% | limit 500-400 | -100
Total commission | - | 750
Calculation | Growing Percentage | Total Commission
--- | --- | ---
150 * 100 * 1.5% | 225 | 975
200 * 100 * 1.5% | 300 | 1050
Example 3: Grade by Amount - Calculation method net
Agreement
To Amount | Prof Perc | Commission Percentage over Grade | Growing Percentage over Total | Fixed Amount | Maximum Limit
--- | --- | --- | --- | --- | ---
1000 | 0.00 [%] | 1.00 [%] | 0.00 [%] | 0.00 | 0.00
2000 | 0.00 | 2.00 | 0.00 | 0.00 | 0.00
5000 | 0.00 | 4.00 | 0.50 | 0.00 | 0.00
10000 | 0.00 | 5.00 | 1.00 | 0.00 | 0.00
25000 | 0.00 | 5.00 | 1.50 | 0.00 | 0.00
A relation closed an order of 12,500.
Calculation | Commission Perc. | Commission
--- | --- | ---
(1000 - (1,000 * 1%)) * 1 % | grade 0-1000 | 9.9
(1000 - (1,000 * 2%)) * 2 % | grade 1000-2000 | 19.6
(3000 - (3,000 * 4%)) * 4 % | grade 2000-5000 | 115.2
(5000 - (5,000 * 5%)) * 5 % | grade 5000-10000 | 237.5
(5000 - (2,500 * 5%)) * 5 % | grade 10000-25000 | 118.75
Total commission | - | 500.95
Calculation | Growing Percentage | Total Commission
--- | --- | ---
(12500 - (12,500 * 1.5%) * 1.5 | 184.68 | 685.63
Example 4: Grade by amount - Profit percentages
Agreement
To Amount | Prof Perc | Commission Percentage over Grade | Growing Percentage over Total | Fixed Amount | Maximum Limit
--- | --- | --- | --- | --- | ---
100000 | 10.00 [%] | 0.00 [%] | 0.00 [%] | 0.00 | 0.00
100000 | 20.00 | 0.00 | 1.00 | 0.00 | 0.00
100000 | 50.00 | 0.00 | 2.00 | 0.00 | 0.00
200000 | 10.00 | 0.00 | 2.50 | 0.00 | 0.00
200000 | 20.00 | 0.00 | 3.50 | 0.00 | 0.00
A relation closed an order of 125,000.
Calculation | Commission Perc. | Commission
--- | --- | ---
125,000 * 2.5% | grade 100,000 - 200,000, profit 10% | 3125
Total commission | - | 3125
Example 5: Grade by Amount - Parent relation
Agreement for William, George and John
To Amount | Prof Perc | Commission Percentage over Grade | Growing Percentage over Total | Fixed Amount | Maximum Limit
--- | --- | --- | --- | --- | ---
1000 | 0.00 [%] | 1.00 [%] | 0.00 [%] | 0.00 | 0.00
2000 | 0.00 | 2.00 | 0.00 | 0.00 | 0.00
5000 | 0.00 | 3.00 | 0.00 | 0.00 | 0.00
10000 | 0.00 | 4.00 | 0.00 | 0.00 | 0.00
25000 | 0.00 | 5.00 | 0.00 | 0.00 | 0.00
               William
                  |
        __________|__________
       |                     |
    George                  John

    William is the parent relation of George and John.
    George and John form a relation team.
John and George are linked to an order line. The sale was for 1,250.
JOHN | - | -
Calculation | Commission Perc. | Commission
--- | --- | ---
1,000 * 1% | grade 0-1000 | 10
250 * 2% | grade 1000-2000 | 5
Total | - | 15
GEORGE | - | -
Calculation | Commission Perc. | Commission
--- | --- | ---
1,000 * 1% | grade 0-1000 | 10
250 * 2% | grade 1000-2000 | 5
Total | - | 15
WILLIAM | - | -
Calculation | Commission Perc. | Commission
--- | --- | ---
1,000 * 1% | grade 0-1000 | 10
250 * 2% | grade 1000-2000 | 5
1,000 * 1% | grade 0-1000 | 10
250 * 2% | grade 1000-2000 | 5
Total | - | 30
Example 6: Grade by Amount - cumulative agreement In case the agreement is cumulative, LN does not calculate the commissions and rebates immediately, but stores the sales data in a separate file, sorted by agreement and relation. Each relation can have a different period table. The relations are calculated every week.
Cumulative agreement
To Amount | Prof Perc | Commission Percentage over Grade | Growing Percentage over Total | Fixed Amount | Maximum Limit
--- | --- | --- | --- | --- | ---
20000 | 0.00 [%] | 5.00 [%] | 0.00 [%] | 0.00 | 0.00
50000 | 0.00 | 10.00 | 0.00 | 0.00 | 0.00
In one week, the relation closed three orders.
Day | Amount
--- | ---
Monday | 7,500
Tuesday | 12,000
Friday | 13,500
Sum | 33,000
The commission is calculated over the total amount: 33,000.
Calculation | Commission Perc. | Commission
--- | --- | ---
20,000 * 5% | grade 0-20000 | 1000
13,000 * 10% | grade 20000-50000 | 1300
Total | - | 2300
Related topics Overview of commissions and rebates |