Differences Between Varied and Actual Rate Commission

Differences Between Varied and Actual Rate Commission

Overview

In version 5.1.0, Stockyard introduced Actual Commission Rates while retaining the previously used Varied Rate (formerly called Percentage). These two commission types—Actual Rate Commission and Varied Rate Commission—offer different approaches for managing commissions. Actual Commission allows for assigning a fixed rate that applies consistently across all sales, while Varied Commission provides the flexibility to set a percentage of the sale rate, such as 50% for half the sale rate or 100% to reflect the full initial sale commission charge. Building on the commonly used Special Commission structure in LE Products, Stockyard now extends this flexibility to its users, enabling more tailored commission management.

Explanation of Commission in Stockyard

Varied Rate Commission

  • Definition: Varied Rate Commission refers to using a percentage of the Sale Percentage (Sale %) for calculating the commission.
    • For example, if a sale has a 3% commission, you can set the Varied Rate to be 50% of 3%, making the vendor's commission 1.5%, or 200% of 3%, making the commission 6%.
  • Usage:
    • This method reflects the Sale Commission Charges rate for each sale.
    • It is commonly used in standard configurations where no special commission overrides are necessary.

Actual Rate Commission

  1. Definition: Actual Rate Commission allows for an override of the Sale Percentage with a custom percentage rate.
    • For example, if a sale has a 3% commission but the vendor is set up with a 4% Actual Rate, the commission will be 4%, regardless of the Sale Commission Rate Charge.
    • This can be configured for different species, such as 3% for Cattle Sales, 2% for Goats, and so on.
  2. Usage:
    • This method is applied when a different commission rate is required, overriding the sale's default percentage.
    • It is particularly useful for clients who have negotiated specific rates, allowing for more flexibility in commission management.

Per Head Commission

  1. Definition: Per Head Commission is calculated based on a fixed amount for each individual animal sold, rather than as a percentage of the total sale price.
    • For example, if the Per Head commission is set at $5.00 and 100 animals are sold, the total commission will be $500, regardless of the sale price.
  2. Usage:
    • This method provides a fixed, predictable commission amount for each animal sold, making it easy to calculate and manage.

Species Commission

  1. Definition: Species Commission allows for setting different commission rates for various species of livestock. The commission can be calculated per animal (Per Head) or as a percentage of the sale price. This feature allows flexibility in managing commission rates for each species, and the same concept applies to rebates.

  2. Usage:
    1. Commission Mode: Defines how the commission is calculated for each species, with options including:
      1. Per Head: A fixed amount for each animal sold.
      2. Actual Rate (%): A custom percentage of the sale price, useful for special agreements for different species.
      3. Varied Rate (% Sale Rate): Uses the sale's default commission percentage.
    2. Rebate Mode: Works similarly to Commission Mode but applies to rebates.

Setting up Commission for a Vendor

Checking Commission in Address Book

  1. Open Address Book and select the vendor.
  2. Click on the Vendor section.
  3. Set up the Vendor Commission Rates (Special Commission / Species Commission) as required.
    Please Note: Species Commission requires you to enter a COMMISSION and a REBATE (you can specify 0% if you don't know the rate or don't want to include a rate). However, you cannot add a REBATE without a valid Commission rate (as in, you cannot give a rebate on 0% commission). 

Checking Commission in Livestock Sales

  1. Open Livestock and select a sale.
  2. Click on the Vendor Listing tab.
  3. Right-click on a vendor and select Vendor Control

  4. The default rates from the Address Book will appear on the left. You can adjust the rates for the specific sale if needed (as noted in screenshot below).

Contacting Outcross Systems Support

If you need further assistance in setting up or managing commission rates, please contact Outcross Systems Support at 1800 799 107. Our team is ready to assist you with any inquiries or configuration challenges.


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