Once you have completed the sign up and your tenant is up and running, you can add the NAV-X Commission Management app from the AppSource marketplace here. If you have questions about the installation process of an app through Microsoft AppSource, you can review the Microsoft Dynamics 365 Business Central documentation here.
You will not be able to use NAV-X Commissions until the setup has been completed. The notification will be displayed until the setup is completed and NAV-X Commissions can be used.
Permissions for the app must be setup before the commission setup is started to ensure that the users can do the setup and also use the functionality properly once the setup is completed. The setups are described in detail here.
You can start the Assisted Setup for NAV-X Commissions from the displayed notification on the role center or by searching for “Assisted Setup” (Setup & Extensions -> Assisted Setup) and then selecting “Setup Commissions” from the displayed list.
The wizard opens the first step, which displays a welcome text. You can move forward by clicking on “Next”.
Invoice Date – the date the document will be posted. This is based on the “Posting Date” on the sales document.
The next step of the Assisted Setup allows you to define the rules when commissions are given and what documents would be excluded.
You can define different settings based on when commissions become payable to the salespeople.
Invoice– when the invoice is posted, the amount that is invoiced becomes payable commissions.
Cash Receipt – when the customer pays, commissions become payable. This will also include partially paid invoices and will then make a percentage of the commissions payable (based on the percentage paid).
This is only available when “Commission Payable on” = “Cash Receipt”. Only fully paid invoices will make commissions payable.
This is only available when “Commission Payable on” = “Cash Receipt”. If an invoice is paid late, the invoice will not produce commissions, even if it is paid eventually.
This is only available when “Commission Payable on” = “Cash Receipt”. When a customer has an invoice that is past due, no commission will be paid for this customer. It will be paid when no invoices are past due anymore.
This is only available when “Commission Payable on” = “Cash Receipt”. When customers with past due invoices should be excluded, this allows adding a grace period. For instance, “only exclude customers that have a past due invoice that is more than 90 days past due”.
This is only available when “Commission Payable on” = “Cash Receipt”. Customers with past due invoices will only be excluded, if the amount past due is greater than a percentage of the full outstanding amount.
The next step of the assisted setup will let you define how commissions are calculated.
You can select the basis for the commission calculations. Depending on the value that you select here, the commission rates will be applied to different base amounts. You can define defaults here and then also override this setup on each salesperson.
Gross Profit – Commissions are calculated on the difference between Sales Amount and Cost.
In the next step of the assisted setup, you can define, if you want the system to accrue commissions in general ledger accounts. If you activate “Automatic Commission Posting to G/L”, the system will post the commissions against liability and expense accounts when they are created and paid. If you disable this setting, you can still run a processing report at month’s end that will post the commission transactions to the G/L.
Before you move on to the next step, please select “Accounts” in the bottom of the wizard. This will open the Customer Posting Groups window for you and allows you entering a Commission Liability and Expense account for each Customer Posting Group. This is required to be entered before you can post commissions to the G/L. If you want to learn more about Customer Posting Groups, please look here.
By selecting “Use only most specific Commission Rates”, you can define different rates on different levels of the hierarchy. The system will always use the most specific rate setup when retrieving the commission rates.
If you want to use tiered or “Hockey Stick” commissions, you will have to activate the checkmark in the field “Crease Zero Amount Ledger Entries”. This will create commission ledger entries, even if a salesperson does not receive a commission for a specific sale, but is involved in the sale. This then will be counted towards the total sales amount in a given period.
By default, commissions are calculated on positive and negative lines on a sales transaction, which means that a specific sales transaction could turn into a negative total commission or a commission claw back. If you want to not claw back commissions from your salespeople in this scenario, activate the field “Prevent Negative Commission”. Whenever credit memos are processed, those credit memos result in negative commissions. Even with “Prevent Negative Commission” activated, it does still calculate the commissions for credit memos.
If a salesperson sold less during a period than the credit memos processed for this salesperson’s customers, the commission amount could be negative at the end of the period. If you do not want to claw back commissions from your salespeople in this scenario, you can activate the field “Prevent Negative Total Commission”.
You can define for each Item, Resource, G/L Account, and Item Charge, if one is commissionable or not. In this step, you can define how all of your existing records are configured. This will be implemented at the end of the wizard.
You are done – as long as you configured everything – you are ready to process commissions. Please follow our How-to’s on the left to learn how to perform the different tasks.