Commission Contracts

Definition

Legally independent contract between a company and a commission contract partner . The commission contract partner can be a legal entity or a natural person. The core of the commission contract are the contract agreements . The general agreements include such information as contract number, address of the commission contract partner, contract start and end, and so on.

There are global, standardized and individual types of contract agreements. In the case of global and standardized agreements, the standard commission contract serves as a template for the commission contract. The standard commission contract helps the commission clerk in his or her daily work of entering commission contracts while ensuring that company-wide rules are adhered to.

The attributes for individual contractual agreements are set down in the commission contract. The number of the standard commission contract that serves as a basis for the commission contract is also recorded.

Use

A commission contract consists of agreements agreed explicitly with the commission contract partner, or implicitly through the standard commission contract or as a global agreement.

Individual agreements can only be made in the commission contract.

For example, payment agreements are usually negotiated individually, or internal titles, notice agreements, and so on.

Standardized agreements are included in the standard commission contract as templates. You can change the templates in the commission contract. (for example, performance-related remuneration). Agreements in the standard contract can be selected and attributes defined for them (such as flat rates, guarantee).

Global agreements are predefined in the standard commission contract and these apply throughout the whole organization. Agreements can be changed in the standard commission contract and identified as global agreements. This means they cannot be changed in the commission contract itself. (Example: Sales performance and liability could be fixed for the whole organization in a global agreement.

General agreements are the core object of the commission contract; they contain all the information and agreements (such as start and end) required for the existence of the whole commission contract (such as contract start and end).

Structure

The commission contract includes the following data:

  • Commission contract number (in the key area from a technical point of view)

  • Number of the standard commission contract

  • Versioning include : You can use the include to version-manage tables

  • Business partner number of commission contract partner

  • Time data (all in DDMMYYYY format)

  • Contract start date

  • Contract end date

  • Entry date of commission contract partner

  • Leaving date of commission contract partner

  • Contract currency key

  • Change reason

  • Internal title of commission contract partner

  • Notice period

  • Cancellation date

  • Indicator: Active filter (flag indicating that commission case is pending)

  • Indicator: Activation of the commission contract

By dint of its relationship to other commission contracts, the commission contract can take on different forms. This is regardless of the commission contract type, in which a differentiation is made between certain commission contracts.

Integration

  • The question whether disbursement of commission takes place via the payroll is regulated in the payment agreement, regardless of any assignment to an employment contract. If there are alternative payment recipients, you can define these in the payment agreement.

  • For every commission contract there is a commission contract partner. If several persons want to conclude a (joint) commission contract, you create a group and assign this to the participants. From a technical point of view, information on the commission contract partner is part of the contract. As all companies place great emphasis on the full picture of a customer, with all business relationships (= customer relationship), most companies store these relationships in the central partner system. If this is not the case, you have to conduct an intensive search for relationships in all of the management systems used.

  • If the commission contract is concluded with an employee of the company, certain automatic checks against the HR management system can be made. If the employee leaves the services of the company, a check has to be carried out to see whether the commission contract must also end.