How to Track Commission Sales Rep

Simply Accounting – How to Track Commission Sales Reps

1. From where do I generate proposals when I am asked to give a quote to a sales agent?

In order for the quotes or orders to work you must have your inventory setup?  Click on sales orders and quotes, at the top of the screen you will see “transactions” drop down the menu and you have three choices Sales, orders and quotes.  Pick quotes and create it for your customer.  At the bottom of the screen you will “record” not “post” this entry will not be posted until it is created into an invoice.  The system will issue a quote number that you can retrieve one your ready to convert to an invoice.  Remember to create your inventory items first.

2. How, then, from the proposal/quotation does it become a Sales Order then Invoice?

Once the customer agrees to the quote and you have shipped the product.  Click on Sales, orders, quotes again and this time under “transaction” choose invoice and pick the quote number you want to invoice.  On the screen you will see the product and at the bottom you can post this entry into the general ledger.

3. How does the software automatically calculate sales commission for both the agency and Dave Harding?
In my last email I said you can track sales reps by setting them up as employees.  Well, you can also set them up as projects.  Each time you invoice a customer allocate that sale to a Mr.X who is set up in projects.  At the end of the month you can print each project Mr.x, Mr.Y and so on and see exactly how much each sales rep has sold and to whom. You can than set up Dave the same way. To allocate the sales reps to each project, in the body of customer invoice screen you will have the word “allo” meaning allocation.  Click in that and a list of your sales reps will appear. But first set each sales rep up under projects.
4. Dave explained that at the end of each week, I can simply press a key and it will prepare all of the commission checks and print them off quite seamlessly. How does it do this?

Yes, at the end of each week you can simply press a button and get a report on how much sales they made. You need to first calculate how much commission each one has earned before paying them and that is tracked in projects.  Under reports – projects-income you can get a sales report.  From that report you can generate how much commission each rep as earned and set each rep up as a vendor in purchases journal and post the amount and print their checks.

5. On a related subject, how does it know that the customer has paid the invoice so that they are eligible to receive their commission?

Who ever is doing the bookkeeping should be on top of that. The flow should be recording the quotes which are turned into an invoice and when the payment is received will post the payment against that invoice.

7. Is there a way to integrate Dave’s system with mine so he can see the quotes that I have given and I can see what quotes they have given?
I believe simply accounting has a remote service. But you have to set that up with them.  Call them at 866-665-2559 and ask what services you can implement via internet.