| Applies toCustom Configurations | AudienceAll users | Last updatedOctober 22, 2025 |
The Commission Calculations module calculates and pays sales commissions based on either accrual or cash rules. Commission is defined using Commission Rate Setup records and calculated from posted Sales Invoices. It supports flexible rate structures and can also be adapted for royalty payouts.
Note
This module requires custom configuration from a GoldFinch consultant.
Commission Calculation – Accrual Method
Commission is calculated when Sales Invoices are posted, regardless of payment status.
Commission Rate Setup
Commission rates define how sales reps earn commission. A rate may be assigned by Account and optionally by Item.
| Field | Description |
|---|---|
| Account | Required. Account that is tied to the sales rep. |
| Item | Optional. Used if the commission applies only to certain items. |
| Rate Type | % or Unit |
| Rate | If %: commission = sales amount × rate. If Unit: commission = quantity × rate. |
| Minimum Quantity | Optional. Applies commission only when quantity ≥ this value. |
| Unit COGS | Optional. Predefined cost per unit. |
| Deduct COGS | If enabled, commission is calculated on Net Sales (Sales Amount − COGS). |
Process
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From the Commission Calculations list view, select Commission Calculation – Accrual
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Enter Month End Date – invoices with Posting Date ≤ Month End Date are included
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A Commission Calculation Header is created for each Sales Rep.
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Commission Calculation Lines are generated for each eligible Sales Invoice Line based on the following logic:
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Match a valid Commission Rate for the Sales Rep
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Apply the defined Rate Type (Percentage or Unit Rate)
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Validate Minimum Quantity requirements, if applicable
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Deduct COGS before calculation if configured
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Page Buttons
| Button | Description |
|---|---|
| Release | Locks the calculation and prevents editing |
| Reopen | Unlocks for recalculation and updates |
Commission Calculation – Cash Method
Commission Rate Setup
Commission rates define how sales reps earn commission. Each rate is assigned by Account (which must be linked to a Sales Rep), and the Rate Type must be Percentage (%).
Process
Cash-based commission is calculated based on customer payments received.
Steps:
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From the list view, select Commission Calculation – Cash.
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Enter a Month End Date – this includes posted invoices with a Posting Date on or before the Month End Date.
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A Commission Calculation Header is created for each eligible Sales Rep.
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Commission Calculation Lines are generated for each Sales Invoice based on the following logic:
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Payment Remaining for Commission > 0
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Calculation:
Payment Remaining for Commission = Payments Received − Payments Already Used for Commission
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Match a valid Commission Rate for the Sales Rep.
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Important
All prior commission calculations must be Released before creating a new Commission Calculation.
Page Buttons
| Button | Description |
|---|---|
| Release | Updates Payment Used for Commission for Sales Invoices related to the current Commission Calculations, and also locks the Commission Calculation to prevent manual edits. |
| Reopen | Unlocks the Commission Calculations to allow manual edits. |
Commission Payments
After releasing either Accrual or Cash commission:
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Click Create Purchase Invoice
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A Purchase Invoice is created per Sales Rep (Vendor Account) for payout
Royalty Calculation (Optional)
This module can also support royalty agreements by renaming labels:
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Commission → Royalty
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Sales Rep → Vendor / License Holder
No functional changes are required.
Article Commission-Calculations · Last updated October 22, 2025 · GoldFinch ERP Help Center
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