Use a Sales Incentive Program

Implement a Sales Incentive Program using a few simple steps to indicate the Customers, Items, Individuals and Location Managers eligible for the program.

Activate the Sales Incentive Program

Launch Merchant Ag FIN and navigate to Admin > Installation > Access Parameters > IN and select the checkbox for Use Sales Incentive.

Set up Customers

Customer Accounts will need both a Responsible Location and Field Rep indicated for sales of eligible Items to the Customer to be included in the Gross Profit calculation.

Set up Items

Items that will be included in the Incentive Program need to be selected as Incentive Eligible and have a Standard Cost entered. The Standard Cost is used to calculate Gross Profit by subtracting the Standard Cost from the Selling Price.

Once the Item is selected as Incentive Eligible, the Standard Cost field becomes active on the Price Calculation tab. Save the item after all updates have been completed.

Set up a Field Rep

To set up a Field Rep, navigate to Setup > Access Individuals and open the Individual account by double clicking or click once and select the Edit button. Within the Individual Detail window, select the type of Individual account, Field Rep.

Select the Sales Incentive tab to enter the Prior Year Base which is the minimum Gross Profit a Field Rep must satisfy prior to earning any Sales Incentive. Remember to update this figure yearly, it does not populate automatically.

Enter up to three Dollar Base Earned amount ranges and the associated Percentages for each. This allows for flexibility in calculating Incentive based on the Dollar Base Earned for each Field Rep.

Enter a percentage for the Additional Growth Incentive in the Seller field.

Set up a Location Manager

The Sales Incentive program is also available for Location Managers by adding additional information on the Location. Navigate to Setup > Access Locations > Sales Incentive. Select a Location Manager by entering the Operator ID or select F12 to search. Enter the Prior Year Base Gross Profit amount for this Location. Remember to manually update this figure yearly.

Navigate to Setup > Access Individuals > Sales Incentives to enter the appropriate Additional Growth Incentives percentage in the Location field.

In instances where an Individual is both a Field Rep and Location Manager, both the Individual Gross Profit and Additional Growth Incentive is calculated and Individual receives the higher Incentive amount of the two, not both.

Calculating the Sales Incentive Amount

For an Incentive Payment amount to be calculated, a Field Rep’s Individual Gross Profit must exceed the Prior Year Base amount. The Additional Growth Incentive will be calculated using the difference between the Individual Gross Profit and Prior Year Base. The percentage used for this calculation is indicated in the Seller field. A Location Managers Incentive, using the Location percentage in the Additional Growth Incentive field, uses the Gross Profit of the Location which is compared Prior Year Gross Profit indicated.

For example, the Field Rep above has a current Individual Gross Profit of $65,000 which exceeds the Prior Year Base making them eligible for Incentive.

Individual Gross Profit $ 65,000

Prior Year Base $50,000

This amount falls within Level 3 indicating 5% will be used to calculate Incentive, 65,000 x .05 = $3,250.00

Since the Prior Year Base was exceeded, the Additional Growth Incentive is calculated by using the difference between the Individual Gross Profit and the Prior Year Base. 15,000 x .1 = $1,500.00

Total Incentive for this Field Rep = $4.750.00

Sales Incentive Export

Create a Summary or Detail Sales Incentive Report for a selected Period and for All or One

Individual.

Choose the Select File button to specify the location the export file will be saved.