EthoTech FAQ

Frequently asked questions and a list of common variable compensation terms

Do you pay variable compensation such as commissions, bonuses, royalties, or SPIFFs? We compiled this matrix to help you understand when your company would benefit from variable compensation software.

How to Know If You Need Variable Compensation Software

Any entity for which you need a sales-based calculation. This could include: Salespeople, Account Executives, Inside Sales, Managers, District Managers, Owners, Referral Fees, Royalty recipients, Customer Rebates, Buying Groups, and Spiffs.

Send the document that you give to salespeople to describe how their commissions are calculated, current spreadsheets, or commission reports. Be sure to include ALL entities for which you need a sales-based calculation, even if you don’t think of it as a commission.

In all the years of reviewing company commission structures, one thing always holds true — they are all different. Different companies use different terms for the same concepts, so it’s important to have a clear understanding of your requirements and goals. To get there, we spend hours reviewing the commission document you submit. We want to make sure we are a good fit for you.

We will do our best to configure the demo data to how we imagine the solution can best help you reach your goals. The solution has many different configuration options to add lots of flexibility for different commission scenarios. With incomplete information, the picture we paint may get messy, so providing thorough details is important.

Some companies do not have their commission rules documented. Staff members have been performing these tasks for years and they just ‘know’ how it is done. As with many business processes, knowledge gaps pose a risk to your company’s operations. If the commission person is unable to perform the task, how does your sales network get paid? Don’t risk your network losing faith in your company because you don’t have documented business rules for vital functions.

The EthoSeries consists of the following products:

  • Commission Plan
  • Customer Service Collection
  • Historical Serial & Lot Number Tracking
  • Next Numeric Collection
  • Quick Track
  • Salesperson Enhancements

If you are not sure which EthoTech product your company owns, please contact us or reach out to your Microsoft Dynamics Partner.

EthoTech registration keys determine what products you are licensed to use, which will display in the EthoTech Registration window once valid keys have been entered.

Yes. Since all EthoTech Renewal Dates are set to the end of the month, we will match the month of your Microsoft Dynamics GP renewal date. To receive a prorated quote, please contact the EthoTech Renewal Team at [email protected] or 678-384-7500 option 1.

  1. Tiers – Do you add sales/margin dollars over time and apply different rates to different levels?
  1. Tiers – Do you apply different rates to a line item based on the line item’s attributes? Margin amount, Margin %, Sale price, price level, unit price, quantity in base unit of measure, list price %. Different rates for different Site ID’s or Price Levels?
  1. Goals, quotas, or milestones – When we hear these terms, it normally relates to a sales goal for a period (weekly, monthly, quarterly or yearly) where a different rate is applied for each threshold they reach.
  1. Pay based on cash collected or cash receipts – This phrasing can mean a couple different things. Do you release commissions only when the invoice is fully paid based on when you receive the payment? Or do you release commissions based on cash received, but the invoice may not be fully paid (partial payments)? The difference is important.


  2. Net sales – If you calculate commissions based on net sales, what factors into the “net”? Are there costs that are stored in the ERP system? Other factors might include freight, marketing costs, return reserves, etc. Clearly defining what makes up net sales will help you determine what information is needed for the commission solution to perform the proper calculation.

Support Articles

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