Commission Tracking in Microsoft Dynamics GP

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Many of the clients I work with have commission plans for their salespeople and ask about the capabilities and features of Microsoft Dynamics GP for commissions tracking.  The software product itself has basic commissions functionality, and there are some 3rd party ISV products that specifically handle more complex commissions requirements than are found in the basic software product. My personal recommendation when it comes to commissions requirements is twofold: 

  • First, make certain the correct salesperson is captured on the transaction and
  • Second, make commissions a reporting exercise.   

The primary reason I recommend treating commissions this way is that Microsoft Dynamics GP does an excellent job of capturing and tracking information (including its own basic commissions calculations).  However, the application does not allow you to change posted transactions.  So it is not possible to correct a commissions calculation (even as basic as changing the percent) on a posted transaction.  Most organizations I have done commissions work for change their commissions structures annually – often at the start of a new year (e.g. January 1st). And just as often, they don’t finalize the revised commissions plan until sometime later (e.g. March 1st) but being retroactive to the first of the year.  That means there are many posted transactions with old commissions calculations that cannot be changed.  Rather than be concerned about that data – let’s keep it simple: make sure the correct salesperson is recorded on the transaction and then make commissions a report where the new rules are structured in the report logic.  That also gives the organization the ability to look at “what if” scenarios, such as running the “new” commissions plan against last year’s data to see the impact of the new plan.

If your organization is located in the Arizona or New Mexico area, contact Sherwood Systems for assistance in determining if a technology solution can help your organization better serve your business needs. (877) 943-9696

By Sherwood Systems – Arizona Microsoft Dynamics GP Partner

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