Using Custom Criteria in Commission Calculations
When it comes to commission calculations, NetSuite does a commendable job. While traditionally commission calculations were made and maintained in an excel sheet manually, NetSuite is capable of doing these complex calculations within seconds automatically and with utmost accuracy. Moreover, as these calculations may vary from one organization to the other, NetSuite's Incentive Compensation module facilitates easy calculations, authorization, tracking and payments to the employees.
The Incentive Compensation (commission) module in NetSuite facilitates its users to calculate, qualify and make the payments accordingly. These include qualifying commissions on sales, inventory, quantity, and quota as well as commission calculations on billings, collections and in some cases a combination of both of them. Furthermore, NetSuite also allows for further categorization of data via classes, location or departments. Its "custom" selection feature facilitates categorizing commissionable amounts through Saved Searches that work with both customized and standard fields.
Part 1: How to Define Commissionable Item Saved Search?
- Step 1: Create a saved search for a Commissionable Item. Go to List > Search > Saved Searches > New and select "Commissionable Item Saved Search". Customize the desired criteria and save it. This search could be accessed later on as a dropdown selection from the custom categorized field feature available in the commission schedule.
- Step 2: Define the Saved Search that will be used in the future to qualify the date and come up on the results tab.
- Step 3: Select column display for the Internal ID in the "Results" tab. It is a must for error free commission calculations.
- Step 4: Check for data integrity to ensure that the commissionable item for Saved Search is pulling the correct data for calculations. In this step, it is to be noted that we are only sourcing the data and actual calculations are not being made as such.
- Step 5: Similar additional searches could be created as per one's requirements and rates of commissions for various years.
After the Commissionable Item saved Search has been defined, it's now time to integrate it with a Commission Schedule to carry out the calculations.
Part 2: How to Create a New Commission Schedule?
- Step 6: Go to Lists > Commissions > Employee Schedules and select 'New'. Assign a name to the Commission Schedule according to your requirements.
- Step 7: Select a "Commission On" qualifier that aptly fits into the context. One can also categorize further through Classes, Departments or Locations or create a Custom category.
- Step 8: Select the Saved Search that was created in Part 1.
Now is the time to integrate the schedule to a commission plan.
Part 3: How to Integrate the Commission Schedule to the Commission Plan?
A commission plan takes under its purview the schedule and the employees that have been assigned to that particular plan. Moreover, one can also create multiple schedules for different sets of employees.
- Step 9: Go to Lists > Commissions > Employee Plans and select 'New'. Now create a Commission Plan. Choose a name for the Commission Plan and make a selection (under Schedule) for the commission schedule name.
- Step 10: Assign different sets of employees to different plans.
To conclude, using custom criteria in commission calculations in NetSuite is very easy and user friendly and makes things very manageable for a company.