How Commissions are calculated during the Sale Return

In this guide, we will discuss how the Commission is calculated when you submit a Sale in Flawless. In particular, we will go through the details of how Returned as well as Exchanged items are handled commission-wise. 

This article follows three key scenarios. Each scenario starts with the Ring that costs $1,000 and is sold by a Sales Person named Joe. The second sale will always be handled by Samantha. 

The first scenario is when the customer wishes to return the ring:

• Once the original Sale is submitted by Joe, he is credited with the commission for the sale 
• Customer comes back to the Store to return the Ring
• Samantha adds a return Sale Line for the original $1,000 ring. This will create a negative $1,000 return line
• Samantha follows the usual sale steps and refunds the customer $1,000 in the end

After Samantha handles the return — the commission is now deducted from Joe since, effectively, he didn't sell anything. It is important to note that even though Samantha handled the return and is marked as the Sales Person for the Return Sale, she is NOT getting any commission deductions. For reference, please check the screenshot below:

The second scenario is when the customer wishes to exchange the original ring for a less expensive version that costs $800:

• Once the original Sale is submitted by Joe, he is credited with the commission for the sale
• Customer comes back to the Store to exchange the Ring
• Samantha adds a Return Sale Line for the original $1,000 Ring. She then adds a new Sale Line of the less expensive $800 Ring
• Samantha follows the usual sale steps and refunds the customer $200 since this is the difference of prices for the rings

Once the Exchange Sale is submitted, Joe has his commission from the $1,000 Sale deducted. However, since Samantha sold $800 in exchange, she is credited with the commission for the Sale of the $800 ring. For further reference, please check the screenshot below:

The third scenario is when the customer wishes to exchange the original ring for a more expensive version that costs $1,200:

• Once the original Sale is submitted by Joe, he is credited with the commission for the sale
• Customer comes back to the Store to exchange the Ring
• Samantha adds a Return Sale Line for the original $1,000 Ring. She then adds a new Sale Line of the less expensive $1,200 Ring
• Samantha follows the usual sale steps and charges the customer $200 since this is the difference of prices for the rings

Once the Exchange Sale is submitted, Joe has his commission from the $1,000 Sale deducted. However, since Samantha sold $1,200 in exchange, she is credited with the commission for the Sale of the $1,200 ring. For further reference, please check the screenshot below:

We hope that these practical examples above help you understand how the commission works during the Returns and Exchanges. It is very important to understand the key principle — your commission is deducted only if you were responsible for the Original Sale. Any new sales are credited towards the Sale Person who actually made a sale. 

Feel free to also follow our step-by step video guide below for better understanding. 

Commission Calculations in Returns/Exchanges