How Commission Works in Dynamics 365 Finance

Commission is used to calculate and distribute commission from a sales order to members of a commission sales group

Set up

Customers

• Customer groups for commission
• Sales groups

Items

• Commission Item Group

Calculation

• Sales groups
  • Sales Representative
• Commission Calculation
• Commission Posting

How the process works

In daily use, the process is straightforward:

1. Create the sales order with the relevant customer and released product
2. Confirm and invoice the sales order
3. After Sales Order Invoice, commission is also posted
4. Review the result in Commission transaction list report

How the amount is calculated

The process map gives the core formula:

Commission Fee = Sales Amount * Percentage * Commission Share

• Sales Amount is the amount used as the commission base
• Percentage is the commission percentage from the commission Calculation setup
• Commission Share is the share assigned to the member in the commission sales group