Vendor Commission Procedure

Hi All,

I am just wondering if anyone can put me on right direction. My situation is that we have to pay commission to our vendors and I need to find out a right way of doing this in AX 2012.

  1. We have sites, set up in AX as a vendors.
  2. Each vendor has agreed commission percentage.
  3. Vendor has different sales orders attached to them.
  4. After calculating the commission , we tell our vendor the amount he qualifies for and ask him to produce invoice of that amount.

Now what should be the right way to pay him after receiving this invoice?

Should we create a purchase order first, post invoice and then create and post payment or we should create a direct entry in payment journals ?

I will appreciate your help in due course.

Regards,

AX2012 now has functionality to handle this through the royalty management or procurement incentives where you run these based upon the sales and it creates the invoice for you to pay against. I am not sure if you are doing this from what is described, if you are running this and reporting it and awaiting the invoice just process the invoice as a vendor non-stock invoice and pay it when due. You could raise the PO to a service item to reflect what you have told the vendor they qualify for and then match it to the invoice sent in.

Hi Adam,

Thanks for your reply. we provide services and have got service item. We are not using royalty management or procurement incentives but a bespoke routine inside of AX which actually calculate commisions for each vendor and give us a amount. We then ask our vendors to invoice us for this amount.

Regards,

Hi Adam,

Thanks for your reply. we provide services and have got service item. We are not using royalty management or procurement incentives but a bespoke routine inside of AX which actually calculate commisions for each vendor and give us a amount. We then ask our vendors to invoice us for this amount.

I would imagine if you wrote a bespoke routine to handle the vendor commission process you would have done this end to end, asking for the best approach now is a little late if you have already written a solution. I would suggest you load a purchase order for the service item reflecting the payment you expect to make to the vendor and then match it to the invoice they send in and raise and discrepancies between the two. However your end to end might have had another approach in mind [:D]

Hi Adam,

We are not using AX purchase Ledger at the moment to pay to our vendors. we have a routine in AX we takes sales data, calculate vendor commission and store it in a form in following format.

Header = Vendor ID , VA0001 | Period , 4

Lines = Sales ID, Amount Received, Commission Due

  1. SO001, 5000, 500

2 SO002, 1000, 25

Each vendor has more then one sales order attach to it in a bridging table. And he would receive a % from the revenue we get from those sales orders attach to it. We then use our legacy system to pay to those vendors. Now we want to use AX for end to an end process. I have exactly the same what you stated above in my mind and would like to implement this. A question to ask is should i create a service item (Advertisement Fee) to use it in purchase order or I should use Category and put related sales id in description rather then a dummy item id ?

Regards,