DBD: AR - Parameter Effect On Commissions

DBD: Accounts Receivable - AR Parameter Effect On Commissions

🔵 Overview There is an AR parameter setting that will affect the ultimate commission payout when the client takes a discount, or a portion of the invoice is written off.

The following gives an example of how the commission report will be impacted in the event of a write-off.

AR Parameter Setup - VI - ARGMPL

Here is what my commission payable report looks like.

Commissions Payable report

The first invoice (0011034) here is when the parameter is Checked,
The second invoice (0011436) was paid after the parameter was disabled (unchecked).
Both were short paid, and the difference was written off to a General Ledger account of your choice.

💡 Note: Salesperson will still be subject to a commission reduction for slow paying customers if applicable to that salesperson

Invoice - ARGCAA.21

Deposit was entered for the check received, Enter the Total amount of the Customer Invoice in the Total Applied field, then enter the amount of the Cash Received. The user will be prompted that the entry is out of balance, select the option to post to GL. After the account of your choice is selected (Clearing Account), it will return that value to the GL Adjustment field shown here. click OK, print journal and update.

Frequently Asked Questions

Q: What does the AR parameter setting affect?

A: It affects the ultimate commission payout when the client takes a discount, or a portion of the invoice is written off.

Q: What's the difference between the two example invoices in the commission report?

A: The first invoice (0011034) was paid when the parameter was Checked. The second invoice (0011436) was paid after the parameter was disabled (unchecked). Both were short paid, and the difference was written off to a General Ledger account of your choice.

Q: Does a written-off invoice still affect the salesperson's commission for slow payment?

A: Yes — the salesperson will still be subject to a commission reduction for slow paying customers if applicable to that salesperson.

Q: How do I post a short payment write-off to the invoice?

A: Enter the Total amount of the Customer Invoice in the Total Applied field, then enter the amount of the Cash Received. When prompted that the entry is out of balance, select the option to post to GL. After selecting the Clearing Account, that value returns to the GL Adjustment field. Click OK, then print the journal and update.

Tags: accounts-receivable, commissions, commission-payable, write-off, ar-parameter, DB-distributor