The options for the Calculation Code are as follows:
Comm Matrix = This method is used when commissions are a percentage of the selling price or gross profit, based upon the customer, product, or salesperson. The Commission Matrix uses two factors: a calculation code (percentage of price or profit) and a source code (customer, product, salesperson, or flat rate) to determine commission values. See Commission Settings (Commission Matrix) for further detail.
None = No commission calculation.
Hi/Lo Gross Profit = This method uses these attributes - Low & High Limit Percent and Low & High Commission Percent - to calculate commissions. These two attributes are reserved in the Sales Order System Control Settings for all sales, customers, and products. The program calculates commissions using the gross profit margin and the gross profit dollars from each sale, according to the limits and commission percentages set. In essence, it creates a double sliding scale that produces a ratio that is the commission percentage.
Once this option is selected, a screen is available that provides for the entry or modification of these attributes. If using Calculation Code = % * Gross Profit, enter the Low & High Limit Percent and the Low & High Commission Percent on this screen. The following fields are available for entry: Limit Percent Low (Minimum profit margin to allow Low Commission rate), Limit Percent High (Minimum profit margin to allow High Commission rate), Commission Percent Low (Commission rate for profit margins between the Low and High Limit), and Commission Percent High (Commission rate for profit margins at or exceeding the High Limit).