Commission

Set Up Commission

When setting up the commission functionality, do the following: 

1. To set up the standard commission functionality in Microsoft Dynamics 365 for Finance and Operations, review the following article: Set up sales commission rules .
2. To set up the standard deferral schedule functionality for Subscription Billing, review the Subscription Billing documentation .
   • On the Deferral Defaults page, ensure to set up the defaults for the Deferred commission option in the Sales Order tab.

Sales Order

When applying commission to regular items, the standard Microsoft Dynamics 365 for Finance and Operations functionality does not change.

When applying commission to deferral items, follow the steps in the Microsoft Dynamics 365 for Finance and Operations documentation (Create sales orders ) and incorporate the following: 

1. When creating a sales order on the Sales order page, ensure to go to the Setup FastTab in the header and under the Commission heading, select the Sales group and Commission group.
2. For a deferral item, select Advanced deferrals, and on the Transaction Deferral page, ensure that Deferred is Yes and under the Accounts heading check the commission deferral and recognition accounts have the values that you want, or if needed, change the account values.
3. Generate and post the invoice for the sales order.
   After the invoice is posted, the deferral schedules for the item are created.

You can review the commission amounts on standard Microsoft Dynamics 365 for Finance and Operations pages. Also, you can review the commission deferral schedule on the Subscription Billing Schedule page. For more information about deferral schedules, see the Subscription Billing documentation .

Billing Schedule

When applying commission to a billing schedule, follow the steps for creating a billing schedule in the Subscription Billing documentation and incorporate the following: 

1. On the Billing Schedules page, in the header under the Commission heading, ensure that the Sales group and Commission group are the values you want.
2. For each line added to the Billing Schedules, review the Line Details to ensure that the commission sales and customer groups are the ones you want to use for the line.
3. For a deferral item, select Advanced deferrals, and on the Transaction Deferral page, ensure the following: 
   1. Deferred is Yes.
   2. Under the Accounts heading check the commission deferral and recognition accounts have the values that you want. Change the account values as needed.

After the billing schedule is created, use the Invoice Creator to generate the sales documents. The commission groups applied to the billing schedule line items are updated on the resulting sales documents.

You can review the commission amounts on standard Microsoft Dynamics 365 for Finance and Operations pages. For deferral items, you can access the associated commission deferral schedule from the View Billing Detail page or the Billing Detail Lines inquiry. For more information about deferral schedules, see the Subscription Billing documentation .

Revenue Split Items

For items that use revenue splitting, the Sales group and Commission group are updated for the revenue split parent item with the values from the header. If the header values are empty, the line values are empty too.

If the revenue split parent item is also a deferral item, after the invoice is created, the resulting commission deferral schedule has the following attributes: 

• Recognition type: Debit
• Distribution type: Commission
• Transaction type: Sales order

Milestone Billing Items

For items that use milestone billing, the Sales group and Commission group are updated for both the milestone billing parent item and all milestone billing child items (that do not use the unbilled revenue feature). If the header values are empty, the line values are empty too.

If the milestone billing parent item is also a deferred item (with or without the use of the unbilled revenue feature), after the invoice is created, the resulting commission deferral schedule has the following attributes: 

• Recognition type: Debit
• Distribution type: Commission
• Transaction type: Billing schedule

If the milestone billing child item is also a deferred item (with or without the use of the unbilled revenue feature), after the invoice is created, the resulting commission deferral schedule has the following attributes: 

• Recognition type: Debit
• Distribution type: Commission
• Transaction type: Sales order