Commission System

Learn how the automatic commission calculation and tracking system works for sales staff.

Overview

The Commission System:

Calculates commissions automatically on orders
Supports multiple calculation methods
Tracks earnings per staff member
Stores commission data with orders
Provides reporting and analytics

Commission Types

1. Total Excluding Tax

Configuration: Commission type = "Total excluding tax"

Calculation: Based on order subtotal (before tax and shipping)

Formula:

Commission = (Order Subtotal × Commission %) / 100

Example:

Order Subtotal: $1,000.00
Tax: $80.00
Shipping: $20.00
Grand Total: $1,100.00

Staff Commission: 5%
Commission Amount: $1,000.00 × 5% = $50.00

Use Case: Standard B2B sales, wholesale

2. Total Including Tax

Configuration: Commission type = "Total including tax"

Calculation: Based on subtotal including tax (before shipping)

Formula:

Commission = (Subtotal Incl. Tax × Commission %) / 100

Example:

Order Subtotal: $1,000.00
Tax: $80.00
Subtotal Incl. Tax: $1,080.00
Shipping: $20.00
Grand Total: $1,100.00

Staff Commission: 5%
Commission Amount: $1,080.00 × 5% = $54.00

Use Case: Retail sales, B2C operations

3. Product Discount

Configuration: Commission type = "Product discount"

Calculation: Based on discount amount given

Formula:

Commission = Sum of all product discounts

Example:

Product A: Original $100, Sold $90, Discount $10
Product B: Original $200, Sold $180, Discount $20
Product C: Original $50, Sold $50, Discount $0

Total Discount: $30
Commission Amount: $30.00

Use Case: Incentivize discounting, promotional sales

Commission Configuration

Per-Staff Commission Rate

Location: Staff > All Staff > Edit Staff

Field: Commission

Examples:

Junior Sales: 3.0%
Senior Sales: 5.0%
Territory Manager: 7.5%
VP Sales: 10.0%

Flexibility: Each staff member can have different rate

System-Wide Settings

Location: Stores > Configuration > MageB2B > Staff > Commission

Settings:

Commission type: Select calculation method
Show commission for Staff: Display in staff dashboard

Commission Calculation Process

When Order is Placed

Step 1: Order created

Staff ID captured from session
Or from customer's primary staff (if configured)

Step 2: Commission calculated

Based on commission type
Using staff's commission percentage
Rounded to 2 decimal places

Step 3: Commission stored

Commission value stored with the order
Visible in admin order view
Included in order comments

Step 4: Staff notified (optional)

Email with commission details
Dashboard updated
Order appears in "My Orders"

Order Status Changes

Canceled Orders:

Commission set to $0.00
Previous commission removed
Staff dashboard updated

Refunds / Credit Memos:

The core Staff module stores a single commission amount on the order. It does not automatically recalculate commission on refunds/credit memos.

Viewing Commissions

Staff Dashboard (Frontend)

Location: Staff Account > My Account

Displays:

Your current commission rate (percentage)

Example:

Field	Value
My current commission	5%

Staff Orders (Frontend)

Location: Staff Account > My Orders

Each order row shows the commission amount stored on the order.

Admin Order View

Location: Sales > Orders > View Order

Fields:

Sales Staff: Staff name
Sales Staff Group: Group name
Sales Staff Commission: Commission amount

Order Comments:

Sales Staff John Smith earned a commission of $50.00.

Admin Reports

Built into the core Staff feature set.

Available Reports:

Commission by staff member
Commission by staff group
Commission by time period
Commission by product
Commission by customer

Commission Scenarios

Scenario 1: Standard Order

Setup:

Staff: John Smith
Commission: 5%
Commission Type: Total excluding tax

Order:

Product A: $500.00
Product B: $300.00
Subtotal: $800.00
Tax (8%): $64.00
Shipping: $20.00
Grand Total: $884.00

Commission:

$800.00 × 5% = $40.00

Scenario 2: Discounted Order

Setup:

Staff: Sarah Johnson
Commission: 7%
Commission Type: Total excluding tax

Order:

Product A: $1,000.00
Coupon Discount: -$100.00
Subtotal: $900.00
Tax (8%): $72.00
Shipping: $25.00
Grand Total: $997.00

Commission:

$900.00 × 7% = $63.00

Scenario 3: Multiple Products with Price Edits

Setup:

Staff: Mike Davis
Commission: 5%
Commission Type: Product discount

Order:

Product A: Original $200, Sold $180 (Discount $20)
Product B: Original $150, Sold $140 (Discount $10)
Product C: Original $100, Sold $100 (Discount $0)
Total Discount: $30

Commission:

$30.00 (sum of discounts)

Scenario 4: Customer Service (No Commission)

Setup:

Staff: Lisa Anderson (Customer Service)
Commission: 0%
Commission Type: Total excluding tax

Order:

Subtotal: $500.00
Tax: $40.00
Shipping: $15.00
Grand Total: $555.00

Commission:

$500.00 × 0% = $0.00

Advanced Configuration

Permanent Staff Assignment

Configuration: Stores > Configuration > MageB2B > Staff > General

Set staff permanently on order: Yes

Behavior:

Order assigned to customer's primary staff
Even if different staff places order
Even if customer places order directly

Use Case: Ensure primary staff always gets commission

Example:

Customer: Acme Corp
Primary Staff: John Smith (5% commission)
Order placed by: Customer directly

Result: Order assigned to John Smith, $50 commission

Email Copy to Staff

Configuration: Stores > Configuration > MageB2B > Staff > Email

Sent email copy to staff when customer is placing an order: Yes

Requires: "Set staff permanently on order" = Yes

Behavior:

Staff receives order confirmation email
Includes commission information
Even when customer orders directly

Commission Adjustments

Manual Override (Admin Order Create)

When creating an order in the Magento Admin, you can optionally enter a commission override for the order.

Use Cases:

Correction of calculation errors
Special bonuses
Commission disputes
Retroactive rate changes

Reassign Staff

Process:

Go to Sales > Orders
Select orders (checkboxes)
Actions > Reassign Sales Staff
Select new staff member
Submit

Result:

Staff ID updated
Existing commission remains unchanged by the reassignment action

Commission Reports

Reports Availability

The core module stores commission values on orders and provides reporting screens in Staff > Reports.

Total commission earned
Average commission per order

Advanced Reports

Built into core mageb2b/staff.

Report Types:

1. Commission by Period

Daily, weekly, monthly, yearly
Compare periods
Trend analysis

2. Commission by Staff

Ranking by commission
Performance comparison
Goal tracking

3. Commission by Product

Which products generate most commission
Product performance analysis
Inventory planning

4. Commission by Customer

High-value customers
Customer profitability
Account prioritization

Export Options

Formats:

CSV
Excel
PDF

Use Cases:

Payroll processing
Accounting integration
Performance reviews
Tax reporting

Best Practices

Commission Structure

Tiered Commissions:

Junior Sales: 3%
Sales Rep: 5%
Senior Sales: 7%
Territory Manager: 10%

Product-Based:

Standard Products: 5%
High-Margin Products: 7%
New Products: 10%
Clearance: 2%

Volume-Based:

$0 - $10,000/month: 5%
$10,001 - $25,000/month: 6%
$25,001 - $50,000/month: 7%
$50,001+/month: 8%

Transparency

Recommendations:

Show commission in staff dashboard
Provide detailed breakdowns
Explain calculation method
Regular commission statements

Accuracy

Ensure:

Correct commission type selected
Staff rates up to date
Order status handling defined
Refund policy documented

Performance Tracking

Monitor:

Commission trends
Top performers
Underperformers
Goal achievement

Troubleshooting

Commission Not Calculated

Check:

Staff Commission is set (not 0%)
Commission type is configured
Order is not canceled
Staff was assigned to order

Solution: Edit staff, set Commission, save

Wrong Commission Amount

Check:

Commission type (excl/incl tax, discount)
Staff commission percentage
Order totals (subtotal, tax, shipping)
Discount calculations

Solution: Verify configuration, manually adjust if needed

Commission Shows $0.00

Possible Reasons:

Staff commission rate is 0%
Order was canceled
Commission type is "Product discount" but no discounts given
Calculation error

Solution: Check staff settings and order details

Staff Cannot See Commission

Check:

Configuration: "Show commission for Staff" = Yes
Staff is logged in
Staff has placed orders
Orders are not all canceled

Solution: Enable commission display in configuration

Next Steps

Learn about staff groups and organization:

Staff Groups →