The NetSuite Partner Commissions/Royalties feature enables you to create commission plans that automatically calculate and pay commission to your partners.
To begin using the Partner Commissions/Royalties feature, do the following:
- Have an administrator enable the Partner Commissions/Royalties feature at Setup > Company > Enable Features > CRM.
- Set your commissions preferences at Setup > Sales > Sales Management > Commissions.These preferences determine how and when you pay commissions and affect all commissions set up in NetSuite.
- Create partner commission schedules at Lists > Commissions > Partner Schedules > New.Commission schedules define the rules that determine how commissions are calculated. Schedules can be based on total sales, percentage of quota met, quantity sold, total profit, or on profitability.
- Create and assign partner commission plans at Lists > Commissions > Partner Plans > New.Partner commission schedules are placed in commission plans that are assigned to your partners. You can include multiple commission schedules in a single plan, and you can assign more than one partner to a plan. You cannot, however, assign a partner to more than one commission plan for the same date range.
Partner Commission Plans
Commission plans award commission to your sales reps and sales managers.
Commission payments are calculated by commission schedules assigned to a plan. You can apply multiple schedules to a single commission plan. You must create commission schedules before you create a commission plan. To create partner schedules and plans, an administrator must enable the Partner Commissions/Royalties feature. Go to Setup > Company > Enable Features > Partners.
For example, Wolfe Electronics assigns partners to a commission plan with three schedules:
- a schedule that awards $50 for each sale involving a first-time customer
- a schedule that pays 12% of total sales per period
- a schedule that pays a set commission of $75 for each computer system sold
Partner Commission Shedule
Commission schedules are rules used to calculate commission earned by your partners. Commission schedules are used to create commission plans that you can assign to your partners. You can include one or more commission schedules in a commission plan.
When you create a commission schedule, first choose the basis of the commission, then determine how the commission is calculated.
Partner commission can be based on total sales, quantity sold, profit, or profitability. You can create commission brackets that award commissions with flat rates, or with rates based on a sliding scale. Commission amounts can also be expressed as set currency amounts or as percentages.
To create a new partner commission schedule, go to Lists > Commissions > Partner Schedules > New. Enter a name for the schedule.