Commissions and Overhead Overbill Usage

BMS Commission Options
 
When to Pay Commission? Commissions are typically paid monthly, but in BMS, they can be paid as frequently as you want. The system is designed so you can pay based on the day you INVOICE/CLOSE THE JOB, or more commonly, when the Invoice is PAID IN FULL.  
 
Varying Structures. Each sales rep can have their own structure. Also, a sales rep can have multiple structures/rates based on the Job Type. You can also have overriding rates at the Customer Level, i.e., house accounts you may pay less on. 
 
Splits. There is a default per Branch, typically 50/50 split. This can be overridden by a manger on any job.
 
Calculation method. At the Job Level or Invoice Level.
 
Remnants Commission. You can have a flat % of sale on items you classify as remnants. This allows you to encourage sales on them regardless of margin. They are automatically calculated separately from the rest of the job.
 
Rates/Structure- 
         Flat Percentages:

• % of Profit – a flat % of the Gross PROFIT of the sale – Typically 20-30%
• % of sale – a flat % of the Gross SALE Typically 3-7%

• Varying % of Profit – a % of the Gross PROFIT of the sale that varies based on Gross Profit – Example: Greater than 40% GP pays 30% of the GP. 30-40% GP pays 25% of the GP. Below 30% pays ZERO. This is just a simple 3 level example. You can have up to 20 levels, typically you want to utilize 5+ levels so that the scale gently cascades up/down, you typically don’t want a sharp cliff. 
• Varying % of sale – a % of the Gross SALE that varies based on Gross Profit. Example: Greater than 40% GP pays 10% of the GP. 30-40% GP pays 7.5% of the GP. Below 30% pays ZERO. This is just a simple 3 level example. You can have up to 20 levels, typically you want to utilize 5+ levels so that the scale gently cascades up/down, you typically don’t want a sharp cliff. 

• The above 4 plans all offer a variation that excludes labor cost and sell from commission calculations

• This is paying exact %. Example: If the job Gross Profit is at 17.3, rep makes 17.3.% of the GP. If GP is 22.98 then rep makes 22.98% of the GP. You would have a floor and ceiling. i.e. 15-33. If below 15% GP, they get nothing. Paid “point for point” between 15-33%. Above 33%, they get 33% of the GP. 

• Overhead can be applied as a % added on to all costs. This setting is at the “Job Type” level. You may have a different Overhead on Retail vs Builder vs Cash and Carry, etc.

• Overhead can also be applied to Labor, i.e. 10% labor burden to help cover costs associated with scheduling and managing the labor.

• Overbill on Catalog. This would be an artificial cost or load on items you sell, i.e. $.05 per SF on a few pad items. Overbill can also be done on the Purchase Order, i.e., you received a special buy on 20 rolls and normally pay $20 per yard but this time it is $14, so you could add a $3 Overbill and Job Cost it at $17. Overbills can also be tied to inventory and also be negative to write down inventory.