Bevica Commission Order Processing

Process Bevica commission orders in Business Central. Create a sales invoice, or use Commission Agreements to generate linked sales and zero-value purchase orders, then post, amend, and credit.

Commission ordering is the process of invoicing a vendor for a portion of the value of goods they have delivered and invoiced a customer.

Prerequisites

Ability to manage items, sales orders and invoices, and purchase orders.

Commission process

There are two general ways commission orders can be processed in Bevica:

1. Creating a sales invoice within standard Bevica. See the 'Creating a Sales Invoice using Bevica Functionality' section below.
2. Using enhanced commission functionality within the Bevica Commission extension. See the 'Creating a Sales Order using the Bevica Commission Extension' section below.

Creating a Sales Invoice using Bevica functionality

Within Bevica you can create a sales invoice against the vendor's customer account for the value of the commission.

Use this method where all you are interested in is billing the 'vendor' for the commission value.

Prerequisites

Make sure the vendor you want to invoice has a customer record. You can link the vendor and customer accounts using Contra functionality. See Contra Balances.

Steps:

1. Create a Sales Invoice against the Vendor's customer record.
2. Create a GL line for the commission amount.
3. Post the Sales Invoice.

Creating a Sales Order using the Bevica Commission extension

Note

The Bevica Commission Order Processing functionality described below is in a different extension to the core Bevica product. Please speak to your Bevica team contact to find out more.

Using the Bevica Commission extension you can record the real customer alongside item and quantities sold and it involves creating linked sales and purchase orders. Use this method if you would like to record greater details behind the commission transaction.

Setup Required

1. Create a Location to be used for these Direct Ship type sales. See Location Setup.
2. Navigate to the Sales Document Type Codes page and create at least one record where the Sales Identifier is Commission and set its Default Location to your Direct Ship Location. See Sales Document Type Codes for more details.
3. Make sure the Vendor/s you want to invoice have a customer record. You must link the Vendor and Customer accounts using Contra functionality. See Contra Balances.
4. Navigate to Bevica Setup. Populate the following fields on the Commission FastTab:

   • Agreements No. Series. This number series will be used when creating Commission Agreements. See Create a New Number Series for information on how to create a new number series.
   • Default Commission Dimension. Populate this field if you would like to create a dimension value for each Commission Agreement created for reporting purposes. If you need to create a new dimension code, search for Dimensions and create a new record. You do not need to create any dimension values - these will be generated by Bevica each time a new agreement is created.

Creating Commission Agreements

Navigate to the Commission Agreements page to create commission agreements for a customer/vendor/item. Populate the following fields:

Field Name	Description
Code	The agreement number will be generated by the system from the number series you entered in Bevica Setup.
Sell-to Customer No.	Enter the customer who is receiving the goods. This relates to the Sell-to Customer on the sales order created.
Commission Purchaser No.	This is the customer record of the vendor you want to invoice. This will become the Bill-to Customer on the sales order created.
Item No.	Enter the item associated with the agreement.
Unit of Measure	Select the item's unit of measure that the agreement is for.
Sales Duty Status	Select whether the sale is duty free or duty paid.
Sales Unit Price	Enter the agreed sales price. Note that this is the price per unit of measure entered.
Sales Currency Code	Enter the currency code of the agreed sales price.
Commission Type	Set this to Percentage or Amount.
Commission Value	• If the Commission Type is Percent, this is the percentage of the Sales Unit Price that is the commission value. • If the Commission Type is Amount, this is the Amount per Unit of Measure.
Commission Amount Per Unit	This is a calculated field. The system will calculate the commission amount per unit of measure based on the Commission Type and Commission Value.
Start Date	Enter a starting date of the agreement. This is compared to the Order Date on the sales order. If this is populated, the Start Date has to be before the Order Date for the agreement to appear when running Get Commission Lines.
End Date	Enter an ending date of the agreement. This is compared to the Order Date on the sales order. The End Date has to be blank or after the Order Date for the agreement to appear when running Get Commission Lines.
Blocked	You are able to block Commission agreements so they can no longer be selected on sales orders.
Note	You are able to enter a note against the agreement for internal information.
No. of Orders	The number of order lines which have been created for the commission agreement. This column should be checked before you amend a commission agreement. You are unable to delete a commission agreement if there are associated sales orders.

Create a commission sales order

The process involves creating a normal sales order and selecting the relevant Commission agreement/s. The sales lines created are for the value of commission. A function then creates a linked purchase order for 0 value, reserving the purchase supply to the sales demand. When the Sales Order is Shipped & Invoiced, this automatically Receipts and Invoices the Purchase Order.

Create a sales order as normal but before entering line details:

1. Set the Sales Document Type to your commission code.
2. Enter the relevant Currency Code on the sales order.
3. Ensure the Duty Status on the sales order is correct.
4. Select Prepare, Get Commission Lines, select Edit List and enter the Quantity Selected on the relevant Commission agreement line/s you would like to add to the order. The Unit Price on the sales lines created will be the commission value. The following must be the same on all the agreement lines selected:

   • Customer No. (a filter is placed based on the sell-to customer entered on the sales order)
   • Commission Purchaser No.
   • Sales Duty Status (a filter is placed based on the duty status on the sales order so ensure this is set correctly before running Get Commission Lines)
   • Sales Currency Code (a filter is placed based on the currency code on the sales order so ensure this is set correctly before running Get Commission Lines)

Note

The sales order's dimensions will be set from the Bill-to (or Sell-to if Bill-to is blank) record prior to selecting any Commission Agreements.

Once the sales order is complete, before Releasing, you can create the Purchase Order. To do this, on the ribbon select Home, Create/Update Linked Order. This will create a zero value purchase order. When the Purchase Order is created a pop message will give you the order number. You are able to see this order number and navigate to it using the Linked Purchase Order No. field on the Linked Orders FastTab.

Note

If you get an error 'Reserved Quantity cannot be greater than 0' when you try and create the linked PO, it is because you have released the sales order first, which has created an automatic reservation. To get past the error, reopen the sales order and cancel the reservation on the sales line. Select to create the linked order again and then release the order.

Reservations

By using the linked order functionality, the sales and purchase documents are linked by reservation entries. You can see this by clicking on the Reserved Quantity field on the lines and navigating to the purchase document.

In addition, for reporting, the following linked document information is available:

Document	Field Name
Sales Order header	Linked PO No.
Sales Order line	Linked PO No. & Linked PO Line No.
Purchase Order header	Linked SO No.
Purchase Order line	Linked SO No. & Linked SO Line No.

The fields are also available on their respected posted documents.

Linked Fields

There are the following linked fields between a Commission Sales Order and Commission Purchase Order. If these fields are updated on a Sales Order, the change will reflect on the Commission Purchase Order.

• Your Reference: The customer's order reference from the Sales Order
• Shipping Agent Code: The shipping agent chosen from the Sales Order
• Shipment Date: The shipment date for the order
• Requested Delivery Date: The customer's requested delivery date

These fields are also available to add to your Purchase Order Confirmation document.

Amending the Sales or Purchase Order

The Get Commission Lines function can be run multiple times to add new lines to the Sales Order. Each time new lines are added the Create/Update Linked Order routine will need to be run to update the linked purchase order.

Action	Result
Deleting the Purchase Order	The Sales Order remains but all references to the Linked Purchase Order are removed.
Deleting a Purchase Order Line	The linked Sales Order Line remains but all references to the Linked Purchase Order Line are removed.
Deleting the Sales Order	The linked Purchase Order is deleted.
Deleting the Sales Order Line	The linked Purchase Order line is deleted. If this was the only line on the Sales Order, the entire Purchase Order is deleted.
Adding a new line	Run 'Get Commission Lines' to select the new line/s. Once the line is on your Sales Order, select 'Create/Update Linked Order' to add the line to the Purchase Order.
Amending sales order line quantity	The quantity on the linked Purchase Order line is amended and the reservation entry is changed to reserve the new quantity.
Amending purchase order line quantity	You are unable to change the quantity if a purchase line is linked to a sales line.
Amending dates on sales orders	You are unable to amend the Shipment Date to a date which is before the Expected Receipt Date on the reservation entry. If you need to change the dates and you are receiving an error, either change the Expected Receipt Date on the Purchase Order (which will change the Expected Receipt Date on the reservation entry), or cancel the reservation, change the Shipment Date on the sales order and the Expected Receipt Date on the purchase order and re-reserve the sales lines.
Amending dates on purchase orders	You are unable to amend the Expected Receipt Date, Promised Receipt Date or Requested Receipt Date to a date which is after the Shipment Date on the reservation entry. If you need to change the dates and you are receiving an error, you will need to cancel the reservation, change the Shipment Date on the sales order and the relevant date on the Purchase Order and re-reserve the sales lines.
Amending the Ship-to Code on sales orders	Amending the Ship-to Code on the sales order will update the Ship-to Code on the linked purchase order. You can only change it to a Ship-to Code with the same Duty Status.
Amending the Ship-to Code on purchase orders	It is not possible to amend the Ship-to Code on a purchase order. It can only be amended on the sales order.

When applicable, the sales order can be Shipped & Invoiced. This will Receive and Invoice the purchase order automatically and Ship and Invoice the sales order creating the following records:

• Posted Purchase Receipt - creating Purchase Item Ledger Entries at zero cost.
• Posted Purchase Invoice - creating a zero value Vendor Ledger entry.
• Posted Sales Shipment - creating Sales Item Ledger Entries with the commission sales value and zero cost.
• Posted Sales Invoice - creating a Customer Ledger Entry where the Customer is the Vendor's customer account and the Sell-to is the Customer No. set in No. 1 above.
• GL and VAT Entries.

Crediting the commission order

If you need to credit a commission order, you will need to manually create a sales return order and purchase return order. The Sales Document Type and Purchase Document Type fields are available on the documents. The return orders will not be linked in the same way as a commission order.

To create the sales return order:

1. Create the return order and populate the relevant customer and ship-to address.
2. Populate the Bill-to Customer with the Commission Purchaser No. (Bill-to) on the commission agreement you are crediting.
3. Populate the Sales Document Type.
4. Run Get Posted Document Lines to Reverse and select the relevant posted sales invoice line/s.

To create the purchase return order, you can either create the lines manually, run Copy Document or run Get Posted Document Lines to Reverse.

To create the lines manually:

1. Create the return order and populate the relevant vendor and duty status.
2. Populate the Purchase Document Type.
3. Manually create the item lines.
4. Change the Direct Unit Cost to 0 on the item lines.

To create the lines using Copy Document:

1. Create the return order and populate the relevant vendor and duty status.
2. Populate the Purchase Document Type.
3. Run Copy Document, selecting the relevant Posted Invoice.
4. Optionally tick to include header, do not tick to recalculate lines.
5. Check the Direct Unit Cost is 0 on the item lines.

If you create the lines manually or using Copy Document, once you have received and invoiced the sales return order, you can reserve the resulting item ledger entry against the purchase return order line (you might need to populate the Expected Receipt Date on the purchase return order before you are able to do this). The purchase return order can then be shipped and invoiced. Note that the purchase return order will be a zero value document but it needs to be created and posted to remove the goods.

To create the purchase return order lines using Get Posted Document Lines to Reverse:

1. Create the purchase return order and populate the relevant vendor and duty status.
2. Populate the Purchase Document Type.
3. Run Get Posted Document Lines to Reverse.
4. Toggle on Return Original Quantity.
5. Select the Line/s you want to return and click OK.
6. Amend the Apply. to Item Entry field on the line to be the Item Ledger Entry of the sales return order (you will need to post the sales return order before you do this).
7. Check the Direct Unit Cost is 0 on the item lines.
8. Ship and Invoice the Purchase Return Order.

Permissions

This functionality has a specific permission set, see Bevica Excellar / Commission permissions.