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Commission Plans

A Commission Plan defines the overall commission configuration for a company.

It provides the context in which Commission Rules are evaluated and determines the period during which the plan can be used.

Purpose

A Commission Plan answers three basic questions:

  1. Which company does this commission configuration belong to?
  2. Which currency is used for commission calculations and payouts?
  3. When is this plan valid?

Commission Rules are attached to a Commission Plan and use the plan's configuration when calculating commissions.

Fields

Field Description
Plan Name Unique name identifying the commission plan
Company Company for which the plan applies
Currency Currency used for commission calculations and payouts
Valid From Date from which the plan can apply
Valid To Optional date after which the plan is no longer valid
Status Current state of the plan

Plan Status

A Commission Plan can have one of the following statuses:

  • Draft — The plan is being configured and is not active.
  • Active — The plan can be selected for eligible transactions.
  • Disabled — The plan has been intentionally disabled.
  • Expired — The plan's validity period has ended.

A plan must be Active and within its validity period to be considered during commission calculation.

Validity Period

The validity period determines whether a plan can apply to a transaction.

For example:

Valid From:  2026-10-01
Valid To:    2026-12-31

The plan can apply to transactions occurring during that period.

An empty Valid To creates an open-ended plan:

Valid From:  2026-10-01
Valid To:    —

This allows the plan to remain valid until it is replaced, disabled, or otherwise no longer eligible.

Selecting the Applicable Plan

When a Sales Invoice is processed, the commission engine first looks for active plans that:

  • belong to the Sales Invoice's company
  • are valid for the transaction date

If more than one active plan is valid for the same transaction date, the engine selects the plan with the most recent Valid From date.

For example:

Plan A
Valid From: 2026-01-01

Plan B
Valid From: 2026-10-01

For a transaction dated:

2026-10-15

both plans may be valid, but Plan B is selected because it has the more recent Valid From date.

This allows a newer commission plan to take precedence over an older plan without modifying historical transactions.

Commission Plans and Rules

A Commission Plan does not normally determine the exact commission calculation by itself.

Instead, it provides the container and validity context for Commission Rules.

The relationship is:

Commission Plan
       │
       ├── Commission Rule
       ├── Commission Rule
       └── Commission Rule

For example:

Standard Sales Commission
│
├── Smartphone Commission — 5%
├── Laptop Commission — 7%
└── Enterprise Customer Commission — 10%

The Commission Rules determine which transactions qualify and how the commission is calculated.

See Commission Rules for the rule evaluation process.

Changing a Plan

Commission Plans are configuration records.

Changing a plan does not recalculate existing Commission Ledger entries.

For example, if a plan previously used a 5% commission rule and the configuration is later changed, an already-created Commission Ledger entry remains unchanged.

This is intentional.

The Commission Ledger stores the historical result of the calculation so that past commissions remain auditable.

Example

Suppose a company wants to introduce a new sales commission plan starting on October 1.

The plan could be configured as:

Field Value
Plan Name Standard Sales Commission
Company Your Company
Currency INR
Valid From 2026-10-01
Valid To Leave empty
Status Active

Rules can then be created under this plan to define the actual commission calculations.

For example:

Standard Sales Commission
        │
        ├── Item A → 5%
        ├── Item B → 7%
        └── Customer Group X → 10%

When an eligible Sales Invoice is submitted, the engine selects the applicable plan and then evaluates its Commission Rules.

Best Practices

Use Meaningful Plan Names

Choose names that clearly describe the purpose of the plan.

Good examples:

Standard Sales Commission
Enterprise Sales Commission
FY 2026-27 Sales Commission
North Region Sales Commission

Avoid vague names such as:

Plan 1
Test Plan
Commission

Use Validity Dates for Plan Changes

When a new commission configuration should take effect from a specific date, create a new plan with an appropriate Valid From date rather than changing historical commission records.

For example:

Old Plan
Valid From: 2026-01-01

New Plan
Valid From: 2026-10-01

This makes the transition between commission configurations explicit.

Keep Historical Calculations Separate

Do not rely on the current plan configuration to explain past commissions.

The Commission Ledger is the historical source for previously calculated commissions.

Next Step

After creating a Commission Plan, configure the rules that determine when and how commission is calculated.

Continue with Commission Rules.