Partner commissions in Zoho PRM are configured through commission plans. A plan defines when partners become eligible for commission, how earnings are calculated, who can receive payouts, and how approvals are managed. This guide walks through creating one, step by step.

Before You Begin

• Your partner programmes are already created.
• The sales modules you'll use (Quotes, Sales Orders, Purchase Orders, or Invoices) are available.
• You have permission to create commission plans.

Once active, a plan automatically evaluates eligible transactions, calculates commissions, routes them for approval, and supports adjustments if transaction data later changes.

Creating a Plan

Go to Setup, choose Partner Commissions under PRM, and click Create Plan. There are seven steps.

Step 1: Plan Details

• Plan name and plan code. A name, and a unique alphanumeric code.
• Plan type. Transaction, where commission is tied to individual records such as deals or invoices (for example, a reward each time a partner submits five deals). Or Quota attainment, where it is tied to hitting a target (for example, a reward after generating $100,000 in revenue in a quarter). See Quota-Based Commissions.
• Commission based on. Line item, which works on individual items within a record (and shows a Commissions for field to specify items such as products), or Total amount, which works on the overall value of the record. See Line Item vs Total Amount.
• Programme. The partner programme the plan applies to.

Step 2: Event Configuration

This sets when, and for which records, commission is calculated. Choose the trigger module (Quotes, Sales Orders, Purchase Orders, or Invoices) and when to trigger: on create, on edit, or on create or edit. Then choose record selection: scan all records in the module, or only those matching conditions you define. Full detail is in Commission Triggers and Record Selection.

Step 3: Discrepancy and Clawback Settings

Transaction values can change after commission is calculated: orders get cancelled, invoices adjusted, products returned. Switch on Discrepancy Handling, set the discrepancy processing window in days against a time-based reference field (such as last activity time, created time, lead created time, or modified time), and set the clawback trigger criteria using non-subform fields from the Deal or related modules. The clawback method is retroactive amount only: if a discrepancy occurs, the recipient's attained quota is adjusted to reflect the modified transaction value. See Discrepancy Handling and Clawbacks.

Step 4: Commission Structure

Choose how earnings are calculated. See Structures in Partner Commissions for the full comparison.

• Flat. One consistent rate for all eligible transactions. The value type is a percentage of the total amount, which is the only option, so you just enter the percentage.
• Tiered. Different values at different performance thresholds. Pick the calculation method (Flat, Differential, or Differential prorate), the tier basis (total amount), the value type (a flat amount or a percentage of the total amount), and define the tiered formula. You can configure up to four tiers.
• Quota-based plans. If you chose Quota attainment, set the quota target (based on total amount, the only option) and the target amount, choose Flat or Tiered, and enter the commission value. The value type is a percentage of quota accrued.

Step 5: Recipients

Click Add Recipients and select the partner accounts that can earn under the plan. The list shows accounts from the associated programme. A partner becomes eligible for calculation once all the plan's conditions are met. Click Save.

Step 6: Approval

Add one or more approvers, depending on your governance needs, and click Save and Next. See Reviewing and Approving Commissions.

Step 7: Plan Schedule

Plans usually align with partner programmes, campaigns, fiscal periods, or incentive cycles, and only transactions within the schedule count. Choose an activation mode:

• Validate and activate immediately. The plan goes live straight away, and you only set the end date.
• Validate and schedule activation. Set both start and end dates.

What Happens Next

Once the plan is active, commission is calculated on the configured events, approved deal registrations and transactions are tracked, discrepancies and clawbacks are handled automatically, and partner earnings are attributed accurately.