Calculation of reseller commissions

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How reseller commission is calculated.

Overview

Reseller commission is calculated as a difference between end price and reseller price of parent account. The parent account can be either master reseller or parent sub-reseller. There are two different cases:

  • Sub-reseller uses master reseller prices
  • Reseller defines own prices

Calculation reseller commission using master reseller’s prices

In this case reseller commission is calculated using Price and Reseller price defined by master reseller. For example, if Price is 100,00 and Reseller price is 90,00 – reseller commisssion will be 10,00.

Prices defined in Master reseller's price list:

Price: 100,00
Reseller price: 90,00

Calculated commission: 100,00 - 90,00 = 10,00

Calculation of reseller commission using own prices

In this case commission is calculated using Price defined by sub-reseller and Reseller price defined by master reseller.

Prices defined in sub-reseller's price list:

Price: 95,00
Reseller price: 91,00 

Calculated commission: 95,00 - 90,00 = 5,00

Using reseller commission as discount

Use commission as discount is an option in Account options of reseller’s account: Admin Panel > Customer Card (of reseller) > Misc.

Option Use commission as discount within Account options

Image: Option Use commission as discount within Account options.

If reseller has this setting activated, and customer’s invoice is sent to the reseller, commission will be used to as discount (in the cart and later on invoice). The status of the commission will be set to PaidOutAsDiscount.

Use Commission As Discount - ON:
Price: 95,00
Reseller price: 90,00
Discount: 5,00
Invoice total: 95,00 - 5,00 = 90,00 + VAT
Commission: 5,00 (Paid out as discount)

Use Commission As Discount - OFF:
Price: 95,00
Reseller price: 90,00
Discount: 0,00
Invoice total: 95,00 + VAT
Commission: 5,00 (Pending)

Important!

This option has effect only in case invoice is sent to the reseller, i.e. when SendInvoiceTo in customer’s Account options is set to Parent account.

Calculation of reseller commission and discounted invoices

If invoice is discounted, due to campaign or upgrade, reseller commission is calculated as: Reseller commission = Price – Reseller_price – Discount.

Commission cannot be negative. For example, if Reseller_price > Price – Discount, then commission is 0.

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