Commission exception splits may not be what you think they are. Commission exception splits are for the exceptions used when you want a different percentage rate commissioned to the purchasing versus the specifying company compared to the general purchaser/specifier split defined in application settings.
If you are unfamiliar with the purchaser/specifier concept, it is the function that allows you to define how commission splits are applied percentage-wise to a commission record where two customers (both with sales people on your team) are entered in a single record. An example record from your product line might look like this:
In the example above, you want to pay a percentage of the commission dollars to the sales person in column A and a different commission to the sales person in column B where they split the $1000 commission amount.
For example, if you import a commission record, where you want a 70%/30% split between the primary and secondary customer such that 70% of the commission is applied to the specifying company, while 30% is applied to the purchasing company, you can set that in the Application Settings for generalized splits for all purchaser/specifier situations.
Commission Exception splits shown here are where you define a different percentage from the split percentages defined in application settings.
Instead of a 70/30% split applied to the specifier and purchaser to the commission record respectively, Commission Exception Splits allows you to change those percentages for specific combinations of purchasing and specifying customers, including for specific manufacturers.
Example
A practical example would be where, on a normal customer, you pay 70% of the sales credit and commission dollars owed to the sales team to the specifying company (for example Apple Inc. or Hawkins Contractor), The Contract Manufacturer “Flextronics” or the distributor “Grainger”‘s sales team should only get 30% of the sales credit and commission dollars applied to their wallet.
Commission exception splits allows you to change the percentage from 70/30 Specifier/Purchaser to another percentage, like 50%/50%. A reason to do this is when the purchasing sales team has stronger influence on the transaction than typical, meaning they caused the sale moreso than usual, and thus deserve more commission credited to their wallet.
Another example would be the exact opposite, where you want 100% to go to the purchasing company’s sales team, because they completely control the products purchased by the specifier, but only for that specifier alone.
Commission Exception Split allows you to override the standard commission split between purchaser and specifier in application settings, and instead set it for specific customers and product lines sold to those customers.
How it works
This is best explained by example:
In this case, when a commission record comes in for the combination of “Ace Supply Tampa” and “Tesla” (in two separate columns in the same commission record row), instead of following the application setting of 70/30% split, this record says that when Tesla is the Specifier to the Ace Supply Tampa Purchaser record, split the sales credit and commission amount 50/50%.
These purchaser/specifier relationships can also be set on the Company record under the Related button, or during aliasing from commission imports in records that turn yellow.
