Objective
The goals for the participants of this session are to demonstrate knowledge of creating Commissions and Subsidies. Please take notes on the subjects that are covered, as everyone involved in this session will need to be certified upon completion.
Creating Commissions and Subsidies in VendMAX
The Commissions Master File is used to define both Commissions and Vending Subsidies. VendMAX now allows you to set the Commission type to either Commission or Subsidy, and will create Delivery Sales from these calculated Subsidies in order to process invoices and maintain a list of accounts receivable.
While Commission rules are assigned to a Point of Sale, and calculated during the Vend Visit Posting process, these rules must be defined in the Commissions Master File table. This Master File is used to define the following commission types:
Generic <All>
National Account
Customer
Location
Driver
Sales Person
User
Once these Commission rules are defined, they can be applied to one or more Points of Sale. This application can be done on the Point of Sale directly, on the Point of Sale Commissions tab, or for National Account, Customer and Location commissions, by implication at a higher level of the hierarchy on:
Sites – Commissions
National Accounts – Commissions
Customers – Commissions
Locations – Commissions
Points of Sale – Commissions
Commissions and Subsidies can be paid on several different basis, and they can be based on a percentage of sales, or an absolute amount per unit sold. A single commission or subsidy rule can include an unlimited number of “rule items” which will define different commission rates for specific products or product families.
Commissions and Subsidies Header:
Agreements – Displays a window with information on any Commission Agreements that have this Commission Rule applied, and links to each Commission Agreement.
Description
Descriptive name of Commission Rule. This description should be somewhat descriptive of the commission rule, or its application. Some examples:
10% Net Revenue
Standard Customer Rate
10% Rev / .05 Bottled Soda
The description entered here will appear on the VendMAX tab screens where the commission rule is applied to the Customer, either at the National Account, Customer, Location or POS screen. It will also appear on the Commission Statement, which is sent to the Customer, unless it is replaced with an entry in the “Report As” field explained below. The description used must be unique.
Code
This code, like all Master table codes in VendMAX, can be assigned by the user, or auto-assigned by VendMAX. If the field is left blank when creating a new Commission, the system will auto-assign the next sequentially available code number when the SAVE button is selected. The CODE for a Commission can be changed at anytime in the future by any user with edit authorization of the Commission table in Security Settings. Codes can be alphanumeric, and up to 16 characters. Codes are required for each record, and must be unique within each site in the database.
Category
Category is available as another way to group and sort Commission records. The values, which are entered, are user defined, and no value needs to be entered.
Type
This field is set when the Commission rule is initially defined. It cannot be changed later. The options for this setting include:
National Account
Customer
Location
Sales Person
Driver
User
Generic – can be applied to any commission agreement
When a VendMAX user is assigning a Driver Commission at a POS, VendMAX will automatically filter the list of available commission rules to choose from based on this Type setting. It will therefore prevent a user from assigning a Commission rule that is intended for a Sales Person to a Customer.
Shared
This setting will have no effect in a single site installation. In a multi-site operation, there may be operations in several states. Under these circumstances, there will be ‘Regional” commission rules which are not used at all sites. When this checkbox is turned off, the commission rule belongs only to the Site which created it. This will prevent other sites from using the commission rule for their Points of Sale, or even simply seeing it in their Commission list when they are operating the VendMAX client software.
Report As
This is a text field with 34 characters of alphanumeric data. If you enter data in this field, it will be used as a replacement for the description name of this Commission rule when referenced on Commission Statements. This allows the user to refer to a commission rule by a different name other than that which the customer sees. Many users will put “VIP Commission Rate” in this field.
Commission/Subsidy Basis
These two fields will establish the basis for calculating commissions and subsidies, respectively. As an example: When a 5% commission rate is defined, what data is multiplied by 5% to get the resulting commission amount? The answer comes from the application of this Basis field. The options and their definitions are:
Actual Revenue
This is the most commonly used value. In this case, commission is paid only on the amount of money that is counted in the money room. This is based on Total Revenue from the Vend Visit.
Cost
This is a rarely used Basis. In this case, VendMAX will calculate the number of units Vended during a Vend Visit, and multiply these units by their corresponding COG values, as defined on the Products – Main tab. The total of all products cost is then used as the basis for calculating rate based commissions. The value of Total Cost is calculated and stored with each Vend Visit during the Posting process. It can be displayed for a specific Vend Visit by opening Vend Visits – Detailed Calculations.
Product Revenue
In this case, VendMAX will calculate the number of units Vended during a Vend Visit, and multiply these units by their corresponding Price in the vend visit. The total of all products revenue is then used as the basis for calculating rate-based commissions. The value of Total Product Revenue is calculated and stored with each Vend Visit during the Posting process. It can be displayed for a specific Vend Visit by opening Vend Visits – Detailed Calculations. VendMAX is only capable of calculating Product Revenue when it knows the number of products sold and their prices at the item level. If either the Vended quantity or the price is missing or a Vend Visit, VendMAX can not calculate a commission amount.
Meter Revenue
Commission Calculated based on the Metered Sales in the Vend Visit. The value of Total Metered Revenue is calculated and stored with each Vend Visit during the Posting process. It can be displayed for a specific Vend Visit by opening Vend Visits – Detailed Calculations. If the driver fails to collect a Meter reading during a Vend Visit, VendMAX will not be able to calculate a commission due. When the next visit with a meter reading is posted, the total commission due for the missing period will also be calculated. This only causes a problem if the meter reading is missed at the end of a month and the commissions scheduled to be paid monthly. In this case, the total commission amount will be paid in the following month when the data is available.
Over/Short (Subsidies Only)
This basis may only be used for subsidies, and should only be used for a single-price machine. When the basis is O/S then subsidies are calculated on the O/S value (Money or Items) from the Vend Visit.
Back Out Taxes
When this box is checked, the Total Taxes calculated for the Vend Visit, before the commission rate is applied will reduce the commission basis amount. It only affects the calculation of rate-based commissions. The value of Total Taxes is calculated and stored with each Vend Visit during the Posting process. It can be displayed for a specific Vend Visit by opening Vend Visits – Detailed Calculations.
Back Out Deposits
When this box is check, any unit level deposits, which are defined for products in the POS, will be subtracted from the Commission basis amount before the commission rate is applied. It only affects the calculation of rate-based commissions. The value of Total Deposits is calculated and stored with each Vend Visit during the Posting process. It can be displayed for a specific Vend Visit by opening Vend Visits – Detailed Calculations.
Back Out Cost
When this box is checked, the Total Cost recorded for the Vend Visit, before the commission rate is applied will reduce the commission basis amount. It only affects the calculation of rate-based commissions. The value of Total Cost is calculated and stored with each Vend Visit during the Posting process. It can be displayed for a specific Vend Visit by opening Vend Visits – Detailed Calculations.
Back Out Vending Refunds
When this box is checked, the Total Refunds recorded for the Vend Visit, before the commission rate is applied will reduce the commission basis amount. It only affects the calculation of rate-based commissions. This setting will not affect the calculation of commissions based on Actual Revenue, since refunds are taken out of the collection before the money gets to the counting room, and has therefore already been deducted. The value of Total Refunds can be displayed for a specific Vend Visit by opening Vend Visits – Detailed Calculations.
Cashless Sales
Multiple commission options are available for dealing with revenue earned through cashless sales. These settings apply to Crane cashless devices only.
Cashless Deductions
This section defines whether Cashless Sales will be handled differently from Cash sales for commissions.
No Cashless Deductions
When this radio dial is selected, there will be no additional deductions made for cashless sales. The ‘Back out from Commission’ section, which is located within the Cashless sales box, is ignored and not used in commission calculations.
Deduct from Commission Basis
When this radio dial is selected, the cashless deductions chosen will be deducted from the commission basis prior to the commission rate being applied.
Deduct from Commissions Earned.
When this radio dial is selected, the cashless deductions chosen will be deducted from the commissions’ amount earned. Therefore, the deductions are applied after the commission rate is applied.
Using cashless deductions & commission rules requires product detail on all applicable cashless transactions. If you have cashless deductions, or cashless commission rules, and product information is not available, the proper cashless deductions & rates cannot be fully applied. As a result, any cashless transaction, which does not have product information, will result in cash commission rules being applied. Even when the desired rule is to deduct all cashless sales, product information must be available on the cashless transactions in order for the cashless sales to be deducted.
Back Out From Commission
This section defines which Cashless options will be deducted.
All Processor Fees
When this is selected, all interchange and processor fees associated with the cashless sales will be deducted.
Data Management Fees
When this is selected, the Data Management fee assigned to the cashless POS will be deducted. The Data Management fee is found under Global Settings and can be over-ridden on the Non-Vending Equipment assigned to the Vending Equipment on the POS. The monthly fee will be pro-rated based upon the number of days in the commission period. The data management fee is deducted for every Non-Vending Equipment attached to the POS with ‘Telemetry Device’ Type.
Monthly Remote Monitoring Fee
When this is selected, the Remote Monitoring fee assigned to the cashless POS will be deducted. The Data Management fee is found under Global Settings and can be over-ridden on the Non-Vending Equipment assigned to the Vending Equipment on the POS. The monthly fee will be pro-rated based upon the number of days in the commission period. The monthly remote monitoring fee is deducted for every Non-Vending Equipment attached to the POS with ‘Telemetry Device’ Type.
Cashless Sales
When this is selected, all cashless sales revenue will be deducted.
TIP: Data Management and Remote Monitoring Fees deductions will occur even when cashless sales for the period are zero. These fees will be deducted as long as total revenue (cash + cashless) for the period is greater than or equal to the deduction amount.
Commissions and Subsidies Set Up
The Commissions and Subsidies Master File is used to set up Commissions and/or Subsidies. Commissions can be set up for any of the following: National Accounts, Customers, Locations, Drivers and Salespeople. Commissions are created to make payments” to whomever they are set up for, based on a percentage of sales or a basic unit amount applied to each sale. Commissions and Subsidies are similar to sales taxes in that they are set up on the basis of ’rules’ and must be set up first before they can take effect. The Commissions Master File can be accessed through the quick links on the left side of the main VendMAX screen and through the Master Files pull down menu. To set up a new Commission or Subsidy follow the instructions below.
Step 1
Once the Commissions Master File has be opened click the + to create a new Commission or Subsidy. The Commissions and Subsidies window will immediately open.
Step 2
Enter a description for the commission in the Description field. ex. Use Standard Rate, School Commission Rate or Reduced Commission Rate.
Step 3
Click on the down arrow next to the Type field to select whom this applies to.
Step 4
Enter a description in the Report As field if the description of the commission should be described differently in a Commission report.
Step 5
Click on the down arrow next to Basis to select on what basis the commission is to be calculated by VendMAX.
Actual Revenue – money pulled from the machine
Cost – the cost of the products sold
Product Revenue – sales of each product sold (may be different from money pulled or what the meter reading gives)
Meter Revenue – difference between last and current meter reading
Do the same for subsidies
Step 6
Check on Back out Deposits to back out bottle deposits before paying commissions
Step 7
Check Shared if this particular commission is shared between sites.
Step 8
Check Back out Taxes if taxes are to be backed out before paying commissions
Step 9
Hit the OK button up on the navigation bar. The setup is now complete.
Commission and Subsidies Items:
The Items area is where the Commission and Subsidy Rules are established for the current Commission rule. The button is used to reveal a dialog box that provides an area to define a rule. The lower area of this screen will show a grid view of each of the commission items which have already been created and are part of the current Commission rule. You can see a detail view of each of these items by double clicking on it.
By pressing the + button, the following dialog box will be revealed:
Applies To:
There are three options for this field:
Vending
If this option is set, the commission item defined here will only be applied to Vend Visits.
Delivery
If this option is set, the commission item defined here will only be applied to Delivery Sales.
All
If this option is set, the commission item defined here will apply to both Vend Visits and Delivery Sales.
Note: VendMax cannot generate commissions off Micromarket sales
Item Type
One of the following items must be chosen for each commission item. Only one of these options will apply for each Commission Item.
Product
Choosing this option will activate the field box to choose a specific product or SKU. Once this option is chosen, the user can type the description or code for the desired product directly into the field, or can use the + button to reveal a dialog box listing all products in the Product Master File. This dialog box will allow all VendMAX search options.
Product Family
Choosing this option will activate the field box to choose a Product Family. Once this option is chosen, the user can type the description or code for the desired product family directly into the field, or can use the button to reveal a dialog box listing all product families in the Product Family Master File. This dialog box will allow all VendMAX search options.
If this option is chosen, the commission rate or commission unit value defined below will apply to all products, which belong to the product family defined here. If a product, which belongs to this product family also, has a PRODUCT level commission item defined within the Commission rule, the PRODUCT level commission item will take precedence over this Product Family commission, which would have otherwise applied.
Invoice Item Pricing Family
This type of Commission item can only be defined when the “Applied To:” field is set to DELIVERY. This is because Invoice Items and Invoice Item Pricing Families are only defined for Delivery Sales. These are not things that can be vended.
Choosing this option will activate the field box to choose an Invoice Item Pricing Family. Once this option is chosen, the user can type the description or code for the desired pricing family directly into the field, or can use the button to reveal a dialog box listing all pricing families in the Pricing Family Master File. This dialog box will allow all VendMAX search options. If this option is chosen, the commission rate or commission unit value defined below will apply to all invoice items, which belong to the pricing family, defined here. If an invoice item, which belongs to this pricing family also, has an INVOICE ITEM level commission item defined within the Commission rule, the INVOICE ITEM level commission item will take precedence over this Pricing Family commission, which would have otherwise applied.
Invoice Item
This type of Commission item can only be defined when the “Applied To:” field is set to DELIVERY. This is because Invoice Items and Invoice Item Pricing Families are only defined for Delivery Sales. These are not things that can be vended.
Choosing this option will activate the field box to choose a specific Invoice Item. Once this option is chosen, the user can type the description or code for the desired invoice item directly into the field, or can use the button to reveal a dialog box listing all invoice items in the Product Master File. This dialog box will allow all VendMAX search options.
All
If this option is chosen, the commission rate or commission unit value defined below will apply to all products. If there are any PRODUCT FAMILY Commission items defined, Products sold within the PRODUCT FAMILY defined will use that commission rate instead of the ALL rule defined here. If there are any PRODUCT Commission items defined, this PRODUCT commission will take precedence over any conflicting PRODUCT FAMILY commission items or ALL Commission Items that would have otherwise applied.
Commission Type
One of the following items must be chosen for each commission item. Only one of these options will apply for each Commission Item.
Commission
Choose Commission you are paying someone.
Subsidy – Choose Subsidy if money is being paid to you.
Itemize As
The Commission Statements of types 3, 4, 5 and 6 include the description of each commission item being calculated and reported. The report creates a description made up of the functional parts of the item. As an example: All-All 15% Revenue, or Vending-Chips .05 Unit. If you would like the report to use a different description, you can enter the text in this field, and it will replace the description that the report would have manufactured.
Commission/Subsidy Type
Percentage
If the item being defined will be calculated as a percentage of revenue, the percentage rate should be entered here.
Per Unit
If the Commission item being defined will be calculated as an absolute value for each unit vended, the amount should be entered here.
Commission/Subsidy Value
Enter the percentage or unit commission or subsidy here.
Deposit
If the Commission item being defined will be calculated as a deposit, the deposit amount should be entered here. Deposits are always defined as dollar amount per unit. These are calculated the same way that commissions are, but are used as a deduction from revenue before calculating commissions, rather then a payment to a customer. Deposit is not available for a subsidy.
Remember that each Commission rule may contain an unlimited number of Commission or Subsidy Items. You may not have two commission items that apply to the same Product, Product Family, etc. unless one is a subsidy and one is a commission. Each of these commission items may be defined at different levels of item type. When VendMAX posts a Vend Visit, it will run through the list of Items in the Vend Visit to decide which commission items to apply. As an example, when VendMAX sees a “Snickers” item sold, it will search the commission rules defined for the Point of Sale looking for a Commission Item assigned specifically for “Snickers”. If it does not find one, it will look for a Commission Item defined for the Chocolate Candy Product Family. If it does not find one, it will look for an ALL Commission Items and apply that item to the sales. In this example, once VendMAX finds that there is a Commission Item defined for “Snickers” specifically, it will apply all commission items defined for “Snickers” if there is more than one, but will not apply any commission items defined for Chocolate Candy or All, to this Vended item.
Commissions and Subsidies Misc Info:
User Defined Fields
The Miscellaneous tab allows you to set up and maintain 10 User Defined data fields for Commissions. Most Master Tables in VendMAX provide a place to create and maintain 10 User Defined data fields. The use of these fields is optional.
Creating Commission steps in VendMAX
Commission Steps – Over view
Commissions Steps are a means of providing an increasing incentive to sell more product. The “Pay To’s” will make an increasing percentage of their commissions, based on either the dollar sales they have made or the units they have sold. You can also specify a Basis for each step, or a flat amount they will earn on top of their percentage commission.
For example: You have a commission set up to pay your drivers 20% of the Actual Revenue they bring in. If you have no steps set up, whether the drivers bring in $1000 of revenue a month, or $10,000, they will still make a 20% commission. With Steps, you can specify what percentage commission will be earned based on units sold or revenue.
If you set up steps, you can create an increasing (or decreasing) pay-out according to how much the Pay To earns.
To Create a Commission Step:
Click on Master Files -> Commission Steps
Press + to insert a new Commission Step set
Under Step Type, specify if you want the step to be based on Dollars or Units. Note that once you have saved your commission step, you will not be able to change this!
When you first create a commission step, the payout defaults to 0% for any amount. To add in steps, press the + button. The following screen will appear:
Start Amount:
The minimum amount that must be sold to earn this Step.
Basis Amount:
The flat amount that will be earned if the sales fall in this Step.
After you press “Accept”, you will see the results below:
Explanation: If the drivers sell between $0 and $300, they will make none of their commission. If they make anything over $300, they will make 20% of their commission, plus the basis of $10. Press “OK” to save your steps and the Status will turn to a green light.
Pro Rate Step:
When Pro-Rate Step is checked, the following formula is used:
[(Step Amount*CAS Amount)/Step Based On. Amount] * Payout %
Example:
If you had checked Pro Rate Step, the commissions would be calculated as follows:
| Step: | Calculation | Total |
| 0-300 | [(300*$62.50)/750]*0% | $0 |
| 300.01-600 | [(300*$62.50)/750]*20% | $5 |
| 600.01-1000 | [(150*$62.50)/750]*50% | $6.25 |
| Total: | $11.25 | |
Flat Fee Commissions
Flat Fee Commissions can be handled in VendMAX by using Commission Steps. Create a Step from 0 to 99999999.99 with a Payout of 0% and a basis of your flat fee. The example below is set up for a flat fee of $100:
When you apply this Step to a Commission Agreement, no matter what your accumulated commissions are, the commission you pay out will always be $100. In order to estimate your commissions correctly before you generate, you can determine approximately what percentage commission the Flat Fee would result in, and apply that commission rule to your commission agreement. If you do not need accurate commission estimates before commission generation, you can use a $0 (or any) commission rule for the agreement.
A Commission or Subsidy Agreement is created when you apply a commission or subsidy rule to a “Pay To” – a National Account, Customer, Location, Salesperson, Driver, or User. When you create a commission agreement, you also have the option of assigning Commission Steps and Generation-time rules.
A Commission or Subsidy agreement can be set at the following levels on the food chain: Site, National Account, Customer, Location, or Point of Sale.
Default Statement Type:
Defines the default format of reports for the level of the food chain you are at. For example, if you are at a Customer, the Default Statement type you set there will apply only to Customer commissions. Note that if you have a commission defined at the same level under “Details”, it will override the default statement type.
Tax Area:
Press to select a Tax Area.
Multi-Sited Note: the Tax Area may not be set at the National Account Level.
Press OK to save your changes, then click on “View Tax Rules” to see the details of the tax rule that is in effect on any date.
Press OK to save your changes, then click on “View Commission Rules” to see the details of the Commission rules that are in effect on any date.
Enable History View allows you to see what Commissions and Subsidies are in effect at any point in time. When this setting is checked, you cannot edit the commission agreements.
Adding a Commission Agreement
Press ADD to add a new commission agreement.
Commission or Subsidy Rule: Press >> to select a commission/subsidy rule
Creation Level:
The letters “C”, “P” etc. define where you have commission agreements defined.
The agreement was created at this level. Note that you may have more than one Creation level when a Commission Agreement is overwritten at a lower level.
S – Agreement was created at the Site Level
N – Agreement was created at the National Account Level
C – Agreement was created at the Customer Level
L – Agreement was created at the Location Level
P – Agreement was created at the Point of Sale Level
Period: Press >> to select the interval of time you wish to pay out this commission.
TIP: When you are specifying the period for the first time, you may set the period at any level (i.e. you may specify the customer commission period at the POS level). However, once you have saved the period, you may ONLY change it at the level it applies – i.e. you may only change the customer commission at the customer, the Location commission at the Location, etc.
Step [Optional]: If you wish to specify a commission step, press >>to select a Commission Step.
Override Customer [Location, Salesperson, Driver, and User]: This check box will be enabled when there is a commission agreement at a higher level. If you wish to specify a different agreement for the level you are currently at, check the box and you will be able to specify different commission settings.
Example: If you have, a Customer commission set at the customer level and you want the POS to have a different Customer commission, check this box on the Point of Sale and select the commission you want applied instead.
Override All [Salesperson, User, Driver]. If you wish to override ALL Salesperson, Driver, or User commission agreements at this level (instead of just the selected agreement), check this box.
Details [Optional]: To specify additional generation settings, click on “DETAILS”. The following screen will appear:
Explanation of fields:
The agreement was created at this level.
Commission or Subsidy Rule:
Description of Rule applied
Period:
Generation Period set
Step:
Commission Step (if any) applied
Where you want the generation settings applied to the earned commissions. You may only accumulate commissions at or below the level, you create the commission agreement.
Example: If you are applying a Customer Commission at the Customer level, and you set the “Accumulate At” setting to “Point of Sale”, the commissions for each Point of Sale will be summed and the commission step applied at each point of sale.
Exclude From Higher Level Period Totals:
When this is checked, this Customer, POS, etc. will not be included in any higher-level generation calculations.
TIP: When you are at the highest level and you want commission generation settings to be applied, you should always check this. If you are at the highest level, and it is not checked, your generation settings will not be applied. Note that the other settings on this screen are grayed out when this box is unchecked.
You may only accumulate at one level for each type of commission. For example, you may not have a customer commission, and apply the step at both the POS and the Customer level. If you wish to apply steps at a given level, you must accumulate totals at that level. Those totals are necessarily excluded from accumulating at any higher level.
Amount the Pay To is guaranteed to make if the generated commissions are less than this amount. If Generated Commissions are more than the Guaranteed Amount, then the Generated Commissions are paid.
The minimum amount the Pay To must earn in order to receive a commission check. Note that a lesser accumulated amount would still be generated – it just will not appear on your printed Commission Statement Report until it has exceeded the minimum.
Note: The generated commission will still appear on your Commission Review Report, regardless of whether or not it meets the Minimum Commission Amount.
Minimum Revenue Amount (threshold):
The minimum amount of gross revenue in this period, that must be sold before commissions will be generated. (Commissions will not accumulate on a period-to-period basis.)
Statement Type:
The default setting for the Commission Reports
Due to rounding, revenue will not always be an amount that is divisible by five. If you wish your revenue to always appear to be a multiple of five on your reports, you should set the rounding type to “Nickel”. (Rounded to closest – either zero or five.) This will cause Gross Revenue to show up rounded to the nickel on any reports or wherever Commissionable Gross Revenue (COM Gross) is shown.
Calculate Commissions on Subsidies:
If you wish to pay out commissions on any subsidies you earn, check this box.
Calc Step Of:
This option is only enabled for Driver Commissions.
Individual Records: Each Driver’s commission step will only be applied to the transactions that were completed by them.
Period Totals: All transactions for the POS for the period will be summed, and the Step will be applied to the total for all transactions at the POS – not just the transactions the individual Driver completed. This is useful when more than one driver services/collects.
If your Step is based on Revenue:
Gross Revenue – Total revenue from all items, regardless if a commission rule applies to them or not.
Gross Revenue Less Tax – Total revenue from all items, regardless if a commission rule applies to them or not, after tax is backed out.
Available only when Calc Step of is set to Individual Records:
Commissionable Revenue – Revenue solely from items that have a commission rule applied to them.
Commissionable Revenue Less Tax – Revenue solely from items that have a commission rule applied to them, after tax is backed out.
If your Step is based on Units:
Total Items – Step is based on number of total items sold, regardless if a commission rule applies to them or not.
Commissionable Items – Step is based on number of commissionable items sold (Only items that have a commission rule that applies to them.)
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