Understanding Spread Profit

The Spread Profit Tool allows the user to spread profit (additional money) over the lines of quote for either commission/ overage or resell orders. The user has the option of spreading the profit either by manufacturer or across all of the lines on the quote.

Spreading profit will disperse overage/ profit amounts across the lines of the quote, which means that overage will have to be calculated on a "line item" basis. All of the regular rules regarding overage apply. In order for OASIS to calculate the amount of sales over the overageable amount and to calculate the amount of that overage owed to the agency, the user must define three items:

• Overageable price (OBase column)- this is the price above which the manufacturer begins to pay overage. 
• Overage Commission (OBase Comm column)- even a part sold at an overageable price will have commission amount paid to the agent. OASIS has to know what this commission percentage is to perform its calculations. 
• Overage Split- (% Over column)- in order to calculate how much of each overage dollar the agent gets, OASIS must know what percentage of that overage money is owed to the agent. Note: this split can be recorded in the "Terms" tab of the "Manufacturer Editor." Once set up, OASIS can then record the split in the quote.

Note: if users have not yet met the overageable amount required by the manufacturer prior to spreading the profit, users run the risk of "giving" that profit to the manufacturer. It may make more sense to use an overage line for each manufacturer for whom you know you have met the overage price threshold. 

For Resell Orders: spreading the profit between different items ordered allows the agent to bill the profit as parts from different manufacturers ship the order. The spread profit toll was designed with the resell process in mind because it assists accounting in knowing when to bill profit.

For more information on using the Spread Profit Tool, click here.