Since the Commission Accounting application can interface with other APPX applications, your system's operation is affected by the applications that are included in your system.
Accounts Receivable or Order Entry
If your system includes Accounts Receivable or Order Entry, sales commissions may be posted to Commission Accounting during invoice posting in either application. The Adjustments program in Commission Accounting may then be used to edit the posted commissions. If Accounts Receivable or Order Entry is not part of your system, you must enter commissions through Commission Accounting transaction functions.
Accounts Payable or Payroll
Commissions may be paid to a salesperson through Accounts Payable or Payroll provided the application is part of your system. Each Salespersons record includes a pay code that indicates how commissions are to be handled; if applicable, a vendor number for Accounts Payable or an employee number and earnings number for Payroll must also be specified. A special function in Commission Accounting is used to transfer commission data from the system-maintained Unpaid Commissions file to the appropriate application. A system parameter can enable this function to run automatically as part of end-of-month processing. The transfer creates invoice entries in Accounts Payable or time card entries in Payroll as appropriate; once these are posted, checks can be generated as usual to pay the commissions.
Commission data can be transferred to either application in detail or summary form. If commission detail is transferred, one invoice or time card entry record is created for each Unpaid Commissions record to be paid. If summary commission information is transferred, one invoice or time card entry record is created for each salesperson to be paid. The entry record created is a summary of all Unpaid Commissions records to be paid for the salesperson.
Even if your system includes Accounts Payable and/or Payroll, you are not required to use these applications to generate payments for commissions. For each salesperson, commissions can be marked as "paid," or simply deleted, during end-of-month processing. These options would be used if commission checks are prepared manually, rather than by the system.