Ship-To-Store Software System

How To Use Software Effectively

Commissions and Broker Fees

June 20, 2003

Prepared By

Bonham and Bonham Software Consultants

Table of Contents

Introduction........................................................................................................................... 1

System ENhancements......................................................................................................... 1

Ship-To-Store Commissions & Broker Fees................................................................ 2

Commission/broker fee SET-UP steps............................................................................ 3

Code:.................................................................................................................................... 3

E=Employee, B=Broker:....................................................................................................... 3

Employee ID or Vendor Number:.......................................................................................... 3

Fees When (S=Sold, P=Paid):............................................................................................... 3

Use Inventory Per Unit as Percentage:.................................................................................... 3

Use Percentage Paid as Per Unit Fee:.................................................................................... 4

No Minimum Fees Processed:............................................................................................... 4

Percentage Paid:.................................................................................................................... 4

Percentage Paid With Broker Fee:......................................................................................... 4

inventory SET-UP step.......................................................................................................... 5

Broker Per Unit:.................................................................................................................... 5

customer SET-UP step............................................................................................................ 6

Broker:.................................................................................................................................. 6

Commissions Paid:................................................................................................................. 6

calculating commissions/broker fees steps.......................................................... 7

Print Commission/Broker Report:........................................................................................... 7

Create Commissions/Broker Fees:......................................................................................... 7

Introduction

This process within the Ship-To-Store software system will allow the company to setup both brokers and employees that will be paid on a fee or commission basis. When sales are entered everything will be automatic according to the individual setup controls. Then payment of commissions and fees will be done at the company’s schedule, which will allow editing and verification of payments before they take place. This document is a part of the overall systems documentation meant for the user of the software to accomplish the task described within.

A clear understanding of the operation of the software will result in easier operations, more reliability, more cost saving in company operations, and better communications with Seaside Management Systems, when enhancements are requested by the user.

System ENhancements

The Ship-To-Store software system was written with requirements from existing clients. We understand that all companies do not operate the same and will take any enhancement to this system under consideration. This is not a guarantee that all requests will be satisfied, but it will be likely when it is determined that the request will enhance the systems total capabilities without degrading any other portion.

Any changes to the Ship-To-Store software system will be published to all current clients at no additional cost. The enhancement process has been calculated within the maintenance agreement with Seaside Management Systems.

Ship-To-Store Commissions & Broker Fees

The Ship-To-Store software calculates the commissions paid to employees and fees paid to brokers for selling product. When an employee is paid a commission, STS will interface with the payroll system to create or update a time card with the commission information to be paid. When a broker is paid fees, STS will create an Accounts Payable entry for the broker to be run through the check writing section of accounts payable.

A broker is attached to a customer on the customer file by three characters that are set up in the commissions and broker fees file. When commissions and fees are processed STS will accumulate all customer sales that have not previously paid broker fees and then separate them by the broker code for processing.

An employee is attached to the invoices sold by their three digit sign on code. When commissions and fees are processed STS will accumulate all sales that have not previously paid commissions and then separate them by employee code for processing.

After STS accumulates the total sales for each broker and employee, STS will calculate the commissions and fees based on the criteria for each individual.

The calculation is based on whether the fees are paid when the sale is made or when it is paid. Whether it uses the Per Unit factor in the inventory file as a percentage, a fee per unit, or not used. A percentage to be paid on an invoice item is individually set in the commission and broker fee file for each broker and employee. When an employee is also paid commissions along with a broker the percentage factor is also listed in the commissions and broker fees file.

STS will allow the viewing and updating of any information through an edit list before STS creates the commission and broker fee entries. STS will also keep track of any commission or broker fee that was paid for a returned product or any cancelled invoice. The next calculation will subtract any of these corrections from the payments.

Commission/broker fee SET-UP steps

The following fields are needed for both Broker Fee processing and Employee Commission processing. Each field is described below and the screen will be accessed from the Main Menu options (K then L). Then A will view existing codes, B will add new codes, C will change existing codes, and D will delete existing codes. This section will describe the Broker/Commissions file. You will have to inquire Inventory and Customer set-up.

Code:

For Commissions the contents of this field will be the same as the sign-on initials for the Ship-To-Store. When commissions are calculated the invoices will be scanned for the employee that keyed the invoice in as the one receiving the commissions.

For Broker Fees the contents of this field will be matched up with the Broker field on the Customer record. When fees are calculated the customers that match this code will be scanned for the broker fees.

E=Employee, B=Broker:

This field identifies whether this code will be used in Commission or Broker Fee processing. It is also required.

Employee ID or Vendor Number:

For Commissions this value must be on the Payroll file. It will create a Time Card with the calculated amount of commissions for payment through the Payroll system.

For Broker Fees this value must be on the Vendor file. It will create a Accounts Payable entry with the calculated amount of broker fees for payment through the Accounts Payable system.

Fees When (S=Sold, P=Paid):

This field identifies when Commissions and/or Broker Fees are calculated. When an S is used the system will calculate on invoices sold. When a P is used the system will calculate on invoices that have been paid by the Customer.

Use Inventory Per Unit as Percentage:

When a Y is entered into this field the system will use the contents of the Broker Per Unit on the Inventory file as a percentage in calculating the Commissions and/or Broker Fees.

Use Percentage Paid as Per Unit Fee:

When a Y is entered into this field the system will use the contents of the Broker Per Unit on the Inventory file as the amount for each unit in calculating the Commissions and/or Broker Fees.

No Minimum Fees Processed:

When a Y is entered into this field the system will not calculate any Commissions and/or Broker Fees when the Broker Per Unit on the Inventory file has a value of zeros.

Percentage Paid:

The contents of this field will be used as the percentage for calculating Commissions and/or Broker Fees when per unit is not used. When you have an Employee that will be sharing with a Broker this percentage will be what is paid the Broker.

Percentage Paid With Broker Fee:

The contents of this field will be used as the percentage for calculating Commissions for Employees that share with the Broker for doing entering in their sale orders.

inventory SET-UP step

The following field is used when any inventory item will be paid Commissions and/or Broker Fees instead of a straight percentage.

Broker Per Unit:

For a separate percentage for this inventory item the percentage will be entered here and the Commissions/Broker Fees field “Use Inventory Per Unit as Percentage” has a value of Y.

customer SET-UP step

The following fields are used to calculate Commissions and/or Broker Fees for customers. Each customer will have to be set-up with either Broker and/or Commissions to calculate against sales.

Broker:

When a Broker Fee is to be calculated the Commission/Broker Fee code will be keyed into this field. The system will only calculate Broker Fees when this field is populated.

Commissions Paid:

When Commissions are to be calculated for employees the value of this field must be a Y. The system will only calculate Commissions when this field is populated.

calculating commissions/broker fees steps

The following two steps are the only steps needed to calculate Commissions and Broker Fees after all the set-up steps are completed. The set-up steps only need to be done once and then maintained when changes are needed. Also Commissions and Broker Fees have to be done before the Accounting is done for that week or month.

Print Commission/Broker Report:

This option is reached from the Main Menu by pressing (F, L, then F). It is important that this report is done first, because it provides the opportunity to make sure thing are correct and changes can be made before payments are created.

Create Commissions/Broker Fees:

This option is reached from the Main Menu by pressing (F, L, then G). When this run the system will place Commissions in Time Cards, place Broker Fees in the Accounts Payable system, and mark all the invoices effected as previously processed so they will not be effect in any other Commissions and Broker Fees processing.