Non-Commissionable Inventory

  • Non-Commissionable Inventory

    Posted by Sara Sharkey on October 12, 2022 at 10:14 am
    • Sara Sharkey

      Member

      October 12, 2022 at 10:14 AM

      Hello,Ā 

      Is there a way to make old inventory non-commissionable?Ā Ā 

      We currently pay our sales reps commission on gross profit.Ā  We run a JET P&L report by salesperson code, then calculate commission based on a percentage of each person’s gross profit.Ā  We would like to have any inventory more than 90 days old that is related to a sale move to be non-commissionable.Ā  Right now, at the 120 day mark, there is a deduction against commission to charge the salesperson because it is looked at as bad debt.Ā 

      Any recommendations would be greatly appreciated.

      ——————————
      Sara Sharkey
      Senior Accountant
      Compax
      Salt Lake City UT
      ——————————

    • Ted Johnston

      Member

      October 13, 2022 at 11:09 AM

      First question is why would you want to disincentivize your salespeople from selling older inventory? Working in retail and distribution, we usually go the other way and work on ways to incent the sale of older inventory.

      Second, it depends on the details behind the Jet report? If you are using the item ledger entries (or value entries) for the costs associated with the sale, then you could use the posting date of the positive entry to determine if you want to pay the commission on that sale.

      If the report is written from the G/L using a dimension for the salesperson, then you will have a lot of work to get back to the age of the inventory in the ILE.

      The good news is all the data is there and linked. It may turn out to be easier to start over with a new report than to modify the current one.

      ——————————
      Ted Johnston
      IT Director
      Streicher’s
      Minneapolis MN
      ——————————
      ——————————————-

    Sara Sharkey replied 2 years, 11 months ago 1 Member · 0 Replies
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