How To Calculate Complicated Retail Commissions
One of the advantages in utilizing an Integrated Retail Accounting software solution is that complicated commission structures can be accurately handled. A well-designed commissions and bonus engine is query-based, able to handle any combination of complex incentives, bonuses, spiffs, or commissions:
- base salary plus commission
- straight commission
- draw against commission
- guarantee against commission
- on-target earnings
- variations and alternative incentives
Commissions & Other Incentives Need To Be Customized
The challenge for retailers is in creating the right compensation plan for their sales people. Ideally, this is an individualized program based on the unique characteristics of the product/service and retail business. Because every retailer has slightly different inventory and staff dynamic, a compensation plan that includes no variables doesn’t make sense.
Software designed to be flexible provides the variety of options that allow staff to be compensated appropriately, usually a combination of base salary, quota, and variable commissions. Adding other types of incentives and bonuses is simple when the software can be customized using fixed or scaled rates.
ChainDrive’s query-based commissions and bonus engine exports directly to the external payroll provider. This simplifies the complicated commissions process and provides accurate calculations. That accuracy encourages employees who rely on performance-based compensation to do their best.
The Integrated Accounting software is part of a complete retail management solution that has been designed by retailers to address the specific needs of the industry. Because those who designed this solution are also those customizing it if a client requires it, that customization is efficient and effective.
The best way to calculate complicated retail commissions is to use integrated accounting software designed for the specific application.