Sales Commission and Attribution

Documentation Index

Fetch the complete documentation index at: https://docs.arcuserp.com/llms.txt

Use this file to discover all available pages before exploring further.

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What is captured

Every order in Arcus includes a Sales Agent field that tracks who originated or closed the sale. This field is used for:

• Attribution reporting: Know which rep is responsible for each sale.
• Performance metrics: Track revenue per sales agent.
• Commission basis: Manually compute commissions from the exported report.

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Setting sales-agent attribution on an order

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During order creation

When creating a new order, the system prompts you to assign a sales agent:

1. Click Create Order.
2. Search for the customer.
3. In the Sales Agent field, search for the sales rep by name.
4. Select the rep from the dropdown.
5. Complete the order as normal.

Expected result: The order is stamped with the sales agent’s ID. Reports will attribute the sale to this rep.

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Changing the sales agent after order creation

If the rep who closed the deal changes:

1. Open the order.
2. Click Edit Order or the pencil icon next to the Sales Agent field.
3. Select a different sales agent.
4. Click Save.

Expected result: The order is reassigned to the new rep. Reports will reflect the change.

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Bulk assign sales agents

If you have a large list of orders that need agent assignment:

1. Click Orders > Bulk Actions (if available).
2. Select multiple orders using checkboxes.
3. Click Assign Sales Agent.
4. Select the agent.
5. Click Apply.

Expected result: All selected orders are assigned to the rep. If you have a CSV with order numbers and agent names, contact your admin about bulk import.

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Generating the sales-by-agent report

The Sales-by-Agent Report is the current way to track commission basis.

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Step 1: Access the report

1. Click Reports in the main navigation.
2. Scroll to find Sales-by-Agent (or search for “Sales by Agent”).
3. Click the report.

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Step 2: Configure the report parameters

1. Date range: Select “This Month”, “Last Month”, “Custom Range”, etc.
2. Sales Agent filter (optional): Choose a specific rep or leave blank to see all.
3. Customer filter (optional): Narrow to specific customers if needed.
4. Report type: Select “Summary” (totals per agent) or “Detail” (all orders per agent).
5. Click Run Report or Generate.

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Step 3: Review the report

The report displays:

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Computing commissions (current manual process)

Since an automated commission engine is not yet available, commissions are calculated manually using the exported report.

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Step 1: Export the report

1. From the Sales-by-Agent Report, click Export or Download as CSV.
2. Open the CSV in Excel or Google Sheets.

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Step 2: Determine your commission structure

Common commission structures for distributors: Structure A: Percentage of Net Sales

• Rep gets 2-5% of Net Sales (after returns, before tax).
• Example: Net Sales $50,000 x 3$1,500 commission.

Structure B: Tiered percentage (volume incentive)

• Rep gets 2% on first $50K, 3$50K-$100K, 4$100K.
• Example: $60,000 net sales = ($50K x 2%) + ($10K x 3$1,300 commission.

Structure C: Commission minus chargebacks

• Rep gets 3% of net sales, minus any dispute losses or bad debts.
• Example: Net Sales $50,000 x 3$1,500, minus $200 chargeback dispute =$1,300 commission.

Structure D: Gross profit-based

• Rep gets a percentage of gross margin (not revenue).
• Requires a separate margin report (contact your accountant).

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Step 3: Apply your formula in the spreadsheet

Create a new column in the exported CSV: Column: Commission

• Formula (for 3% on net sales): =NetSales * 0.03
• Or (for tiered): =IF(NetSales<=50000, NetSales*0.02, IF(NetSales<=100000, 50000*0.02 + (NetSales-50000)*0.03, 50000*0.02 + 50000*0.03 + (NetSales-100000)*0.04))

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Step 4: Review and approve

1. Check the math. Do totals make sense?
2. Have your sales manager review for accuracy.
3. Adjust any reps who had disputes, refunds, or special deals.

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Step 5: Process commission payments

Once you’ve computed commissions:

1. Record as expense: In Arcus Accounting, record commission as an Expense account (e.g., “Sales Commission Expense”).
2. Pay the rep: Via paycheck, wire transfer, or check.
3. Document in Arcus: Add a note linking the commission to the report period and the sales rep.

GL Entry:

• Debit: Sales Commission Expense (P&L)
• Credit: Accrued Commission Payable or Cash (balance sheet)

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Current limitations

The current implementation has these constraints:

• No automated commission calculation: Commissions are computed manually from the exported report.
• No commission tiers: You define tiers in your spreadsheet; Arcus does not enforce them.
• No dispute integration: If a rep’s sale is later disputed, you manually adjust their commission.
• No recurring commission: Subscriptions or multi-month contracts are attributed to the rep in the month the sale closed; subsequent revenue is not re-attributed.
• No sales agent hierarchy: You cannot track “who supervises which rep” for manager commissions.

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Best practices for commission accuracy

• Verify agent assignment: Spot-check 10-20 orders each month to ensure the right rep is assigned.
• Document exceptions: If a rep doesn’t get credit for a sale they made, document why.
• Review large sales: For any sale over a threshold (e.g., $10K), verify the rep’s assignment before commission is paid.
• Account for returns: If a customer returns items, subtract the return value from the rep’s gross sales.
• Chargeback policy: Decide whether the rep’s commission is reduced if their sale is later disputed. Document the policy.

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Roadmap: Automated commission engine (future)

In future releases, Arcus plans to add:

• Commission tier configuration: Define tiers per entity (2% on first $50K, 3% above).
• Automated commission calculation: System computes commissions automatically at period close.
• Commission accrual: GL entries automatically accrue commission expense as sales are recorded.
• Exception handling: Configure chargeback offsets, refund deductions, and dispute adjustments.
• Multi-level commission: Support manager commissions (% of team commissions).
• Commission reports: Built-in commission detail and payment reports.

Timeline: TBD. Contact your account manager for the latest roadmap.

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