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Commission can be used as an incentive for salespeople to improve their sales. However, there are many different ways to calculate commission and its difficult to have one generic process that covers all scenarios. Merchant provides a fairly flexible commission system that should cover most cases. It allows commissions to be calculated on sales, gross profit or per unit for different sets of products. It also allows different rates depending on the total sales or total gross profit.

In Merchant, you create a commission code using the Commissions function and within that code you define a set of rules. You then assign a commission code to a location. All sales made in that location will be processed according to the rules defined within that code. You can also assign a commission code to a user to indicate their specific commission rule. This will override any commission code set on the location. However, this requires much more setting up and assigning a commission code to a location will generally be sufficient.

To calculate commissions you run the Commission Report periodically. This will look at all the sales made and calculate the appropriate commissions. The report does not show the commission earned for individual items. It will show the commissions grouped by the rule used to calculate the commission.

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