MLM Software in Delhi, MLM Software Functionality Commissions calculation

Audit of the calculations of all the Commissions:

The company requires constant verification of the accuracy of MLM System Commission calculations. The integrity of the company puts itself at risk when the commission check is sent to a distributor (Imagine a check of commissions with an extremely high value, product of a system calculation error). If the dealer finds errors in the calculation of his commissions, he could resign and look for another company more worthy of his trust. Therefore, all Network Marketing companies require a mechanism to audit and validate the accuracy of each distributor's commission calculations, MLM Software in Delhi.

Utility to preview the result of the commission calculation:

Once the process of calculation of commissions is executed, the results must be reviewed, in the first process it is common to observe visible errors or suspicious problems to investigate, MLM Software in Mumbai.

Inevitably, some problems can only be corrected with human intervention, and once these problems have been corrected, another commissions calculation process will be required.

Some companies, in fact, will require to run multiple processes in the payment cycle prior to final approval. Once these commission calculations are validated, the commission payment process will continue, MLM Software in Delhi.

Commissioned Volume and Volume of Rating:

Most of the company's products are sold to Distributors at Wholesaler's Price, this will generate a profit (commission) to distributors for selling the products at retail or consumer price suggested by the company. We can say that in this case, the company takes as base the "Price to Wholesaler" to pay commissions to the Distributor, MLM Software in Delhi.

However, some products can become expensive for the company (for example: for manufacturing costs) and it can also be said that the cost to the consumer of these products can not be so high, in this case, MLM Software in Mumbai the company is not able to Pay high commissions for the sale of these products. The company may choose to allocate a lower base for the payment of commissions called "Comissionable Volume". Therefore, for the calculation of fees is no longer based on the Price to the wholesaler, but the commissionable volume is taken, thus reducing the commission costs of that specific product.

In addition to the "Comissionable Volume", the same product may have another variable called "Qualification Volume" (often expressed in points) that is used to add it to the distributor's "quota of sales requirements" (and to its uplines )) MLM Software in Mumbai, When it makes a purchase, this variable is necessary to not use the "Commission Value" in the quota of sales requirements. For example, if a distributor buys an 'item' at a wholesale price of $ 20, commissions can be paid on a $ 15 commissionable Volume and the 'Grade Volume' could be 50 points. This is useful in International companies, where each country has its own currency, so it is more convenient to use the rating points. With this scheme, the complexity of managing the commission system increases considerably, but is necessary when the profit margins of products are small with respect to the retail price, MLM Software in Delhi. MLM Software in Mumbai.