Commission Pricing
Certain business use cases require commissions to be charged as a (variable) remuneration for rendered services or sold products. For determining the payment, you can define a fixed commission for the corresponding item. This is a percentage rate for calculating the line item total based on its unit price and the defined percentage. The quantity is always assumed as 1.
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There may be some logic involved to define the unit price as the base for calculating the commission. You can, for example, aggregate order values or "feed" a fixed value taken from some other object.
Assume you charge a ten-percent commission for a deal. With a product price of 200,00 (and the commission set to 10% for an item), the position price of the produced invoice line item would be 20,00.
200,00 * 10% = 20,00
With respect to commissions, JustOn Billing & Invoice Management helps to model more complex scenarios.
You can set up commission tiers, a means to calculate different commissions for an item based on the sales volume. Basically, they work the same way as price tiers do: You define price ranges and a commission for each. Depending on the actual unit price (which represents your sales volume), JustOn determines the commission percentage to be applied.
| Tier | Price | Commission | Description |
|---|---|---|---|
| A | 100,00 | 10% | If the price (sales volume) less than 100,00, the commission is set to 10%. |
| B | 1000,00 | 8% | If the price (sales volume) is 100,00 or more but lees than 1000,00, the commission is set to 8%. |
| C | 6% | If the price (sales volume) is 1000,00 or more, the commission is set to 6%. |
With a determined sales volume of 500,00, the commission tier B applies, and consequently, the commission is set to 8%:
500,00 * 8% = 40,00
With usage-based items, you can configure additional commission tier prices to determine the commission tier allocation. Consider the example calculation again: The actual sales volume is still 500,00. Now assume that you have set a commission tier price of 1000,00 for the item. In this case, the commission tier price overrules the originally determined price, which allocates tier C with the 6% commission:
500,00 * 6% = 30,00
Commission based on average sales volume
Assume you want to calculate the commission based on the average sales volume, for example, the basket amount of an order. You create a commission tier table, for example:
| Tier | Price | Commission |
|---|---|---|
| A | 50,00 | 10% |
| B | 100,00 | 9% |
| C | 150,00 | 8% |
| ... |
The usage data object Order requires a custom field to hold the sales volume for a single order. To calculate the average amount over a certain period, you set up JustOn to aggregate the individual values of this field (see Aggregating Additional Fields), and to use this as the basis for allocating the intended commission (see Price and Quantity Fields).
Modeling this use case so involves:
- Creating the field
ON_BasketAmount__con the Order object to hold the sales volume - Creating the target field
BasketAmount__con the Transaction object - Specifying the field
BasketAmount__cas the price source field in the item fieldTransaction Price Fieldliketransaction.BasketAmount__c - Specifying the average calculation in the Item field
Transaction Aggregation Fieldslike{"BasketAmount__c":"AVG"} - Specifying the commission tier price to be used in the Item field
Transaction Commission Tier Price Fieldliketransaction.BasketAmount__c - Selecting the Item checkbox
Aggregate Indiv. Priced Transactionsto combine transactions with individual prices
Consequently, JustOn calculates the average basket amount of all orders throughout the invoice run period, and allocates the commission tier as determined based on that average.