LunarFront — Small Business Management Platform

Domain Design: Sales Commission

Version 1.0  |  Draft



# 1. Overview

Sales commission tracks what employees earn on sales they process. Commission is the default for instrument sales — most products are commissionable. The system supports per-employee rates with product and category overrides for exceptions.



# 2. Commission Rate Hierarchy

When a sale is completed, the commission rate is resolved in this order (most specific wins):

Priority | Source | Example
1 | Product-specific override | Consignment items at 0%, specific high-margin items at higher rate
2 | Category override | Accessories at 5% instead of default 10%
3 | Employee's personal rate | Senior staff at 12%, new staff at 8%
4 | Company default | Fallback rate for all commissionable sales (e.g. 10%)

If a product has `is_commissionable = false` at any level, no commission is calculated regardless of employee rate.



# 3. Database Schema

## 3.1 Company Settings (additions)

Column | Type | Notes
default_commission_percent | numeric(5,2) | Company-wide default (e.g. 10.00)
commission_enabled | boolean | Master switch — disables all commission tracking

## 3.2 Employee (additions to personnel table)

Column | Type | Notes
commission_rate | numeric(5,2) | Nullable — employee's personal rate. If null, uses company default.

## 3.3 commission_override

Exceptions to the default commission rate — by product or category.

Column | Type | Notes
id | uuid PK |
company_id | uuid FK |
product_id | uuid FK | Nullable — if set, applies to this specific product
category_id | uuid FK | Nullable — if set, applies to all products in this category
commission_percent | numeric(5,2) | Override rate — 0 means no commission on this item
is_commissionable | boolean | False = no commission regardless of rate
reason | text | Why this override exists
created_by | uuid FK |
is_active | boolean |
created_at | timestamptz |

Only one of product_id or category_id should be set per record. Product-level overrides take priority over category-level.

## 3.4 sales_commission

Records the actual commission earned per employee per transaction. Created when a transaction is completed at POS.

Column | Type | Notes
id | uuid PK |
company_id | uuid FK |
transaction_id | uuid FK → transaction |
transaction_line_item_id | uuid FK | Nullable — if tracked per line item
employee_id | uuid FK | The employee who made the sale (transaction.processed_by)
sale_amount | numeric(10,2) | The sale amount commission is calculated on (after discounts)
commission_rate | numeric(5,2) | Rate applied (snapshot at time of sale)
commission_amount | numeric(10,2) | Actual commission earned
rate_source | enum | company_default, employee_rate, category_override, product_override
created_at | timestamptz |

The `rate_source` field records where the rate came from — useful for auditing and commission disputes.



# 4. POS Integration

- When a transaction is completed, the system resolves commission for each commissionable line item
- Commission calculated on the sale price after discounts (not list price)
- If the employee has a personal rate, it is used. Otherwise, company default.
- Product and category overrides cap or modify the rate for specific items
- Commission records created automatically — no manual entry
- Staff can see their commission on the transaction receipt (optional, configurable)



# 5. Settlement and Payroll

- Commission is tracked per transaction and per employee
- Commission totals included in payroll export (from Personnel domain)
- Pay period commission report: employee, total sales, total commission, average rate
- Commission can be paid as part of regular payroll or as a separate payout
- The platform tracks commission — it does not run payroll. Commission totals are exported for the external payroll service.



# 6. Reporting

Report | Description
Commission by employee | Total commission earned per employee per period
Commission by product/category | Which products generate the most commission
Commission rate analysis | Average effective rate by employee — identifies rate discrepancies
Top sellers | Employees ranked by sales volume and commission earned
Override impact | How much commission is saved/changed by product and category overrides
Commission vs revenue | Commission as a percentage of total revenue — cost analysis
Consignment vs regular commission | Separate tracking since consignment items may have different rules



# 7. Business Rules

- Commission is calculated on sale price after discounts, not list price
- Refunds reverse the associated commission record
- Voided transactions delete uncommitted commission records
- Commission rate is snapshotted at time of sale — later rate changes do not affect historical commissions
- Only the employee on transaction.processed_by earns commission (no split commission in v1)
- Consignment items default to is_commissionable = false unless explicitly overridden
- Commission on rental deposits and repair payments: configurable per company (default: no commission on these)
