Commission Sales Report (818) Definition and Usage
The Commission Sales Report (818) provides a method for the buyer to communicate sales information by employee and selling location, to the supplier, for sales commission purposes. In this relationship, the buyer and the supplier contribute to the total compensation due the selling associate. The supplier needs to develop a system to handle the variable components of a sales transaction in which commissions are included. In order to reimburse the buyer’s organization for their (the supplier) portion of employee compensation, the application needs to recognize multiple levels and identification of selling location (i.e., store, department, counter) for each buying organization.
Key Components of the EDI 818 Transaction
- Header Segment: This section includes general information about the transaction, such as the sender and receiver details, transaction date, and control number.
- Commission Information: Details about the commissions being reported, including:
- Commission Identification: Unique identifiers for the commission report.
- Period of Report: Time frame covered by the report.
- Sales Representative Information: Details about the sales representatives earning the commissions, such as name, ID number, and contact information.
- Sales Data: Comprehensive data on sales transactions, including:
- Customer Information: Details about the customers involved in the sales transactions.
- Product/Service Information: Descriptions and identifiers for the products or services sold.
- Sales Amounts: Total sales amounts and any relevant breakdowns.
- Commission Rates: Information on the commission rates applicable to the sales transactions.
- Commission Calculations: Detailed calculations showing how commissions are derived from sales data, including:
- Commission Earned: Total commission earned by each sales representative.
- Deductions: Any deductions or adjustments made to the commission amounts.
- Summary: A summary of the overall report, including totals for sales and commissions.
Commission Sales Report (818) Benefits
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- Efficiency: Automates the reporting process, reducing manual effort and the likelihood of errors.
- Accuracy: Ensures that commission calculations are consistent and based on agreed-upon formulas.
- Transparency: Provides clear and detailed information to all parties involved, enhancing trust and accountability.
- Timeliness: Speeds up the communication process, allowing for quicker reconciliations and payments.
Overall, the EDI 818 Commission Sales Report is a valuable tool for businesses that rely on commission-based sales structures, enabling them to manage and report commission data effectively.
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