Contract Commission Structure

The Contract Commission Structure is a master document within the Vehicle Invoice Management module that allows you to define the specific financial agreements you have with your vehicle contractors. This is essential for automating the calculation of commissions and ensuring that both your company (the operator) and the contractor are paid correctly according to the agreed-upon terms.

Each contractor, represented by a Customer record, can have a unique commission structure, providing the flexibility to handle various types of partnerships.

How to Configure a Commission Structure

1. Navigate to: Vehicle Invoice Management > Masters > Contract Commission Structure.
2. Click + Add Contract Commission Structure.
3. Select the Contractor Name from the list of Customers. Each contractor can only have one commission structure, so this field must be unique.
4. Define the Settlement Cycle, which determines how frequently payments will be calculated and made (e.g., Daily, Weekly, or Monthly).
5. Choose the Commission Type that matches your agreement. This is the most critical field as it dictates how the earnings are calculated.
6. Based on the Commission Type, fill in the additional details as described below.
7. Click Save.

Commission Types and Configuration

The system supports two main types of commission models:

1. Fixed Rental

This is the simplest model, where the contractor is paid a fixed amount or rate. When you select "Fixed Rental," no further financial configuration is needed in this document, as the rates would be handled in the invoice itself.

2. MG + Profit Share

This is a more complex model for partnerships where earnings are shared. It combines a "Minimum Guarantee" (MG) with a share of the profits. If you select this option, you must configure the following:

• Profit Share Basis: Choose how the profit is to be split.
  • Equal Basis: The profit is divided equally between the operator and the contractor.
  • Variable Commission: The profit is split according to a specific percentage.
• Profit Share Percentages: If you chose "Variable Commission," you must define the split:
  • Operator Share (%): The percentage of the profit that your company keeps.
  • Contractor Share (%): The percentage of the profit that is paid to the contractor.
• Priority: This determines the order of payment when calculating the final settlement, which is crucial if there are minimum guarantees to be met.
  • Equal: Both parties are treated equally.
  • Contractor First: The contractor's share or MG is prioritized.
  • Operator First: The operator's share is prioritized.

Fields Description