Definition
Settlement and profit sharing uses sales attribution and rules such as purchase quantity, sales amount, and order count to calculate the profit share an agent or a distributor should receive. A settlement statement is generated on the settlement cycle (for example, monthly). Export and payment records are supported. Unlike payment splitting, which shares profit automatically when payment is made, settlement and profit sharing pays on a cycle.
Profit Sharing Rules
- Profit sharing based on purchase quantity: Calculate profit sharing based on the agent's purchase quantity
- Profit sharing based on sales amount: Calculate profit sharing based on the terminal sales amount
- Profit Sharing by Order Quantity: Calculate profit sharing based on the number of sales orders
- Fixed Ratio: Calculate according to a fixed profit sharing ratio
- Tiered Ratio: Different profit sharing ratios apply when purchase quantity/sales amount reaches different tiers
- Profit Sharing by Tier: Distribute profit sharing amount according to preset tiers
Settlement Process
Settlement statements are generated on a cycle (such as monthly or weekly), containing procurement details, sales details, and profit-sharing amounts, supporting export and payment records. Profit-sharing ratios and settlement cycles can be configured, rules are transparent and traceable, meeting financial and audit requirements.
Difference from payment splitting
Settlement and profit sharing settles on a cycle and pays manually or in a batch. It fits the agent purchasing model. Payment splitting shares the amount with each level automatically when the order is paid, with no manual payout. It fits distributor splitting. The two can be used together so channel funds follow a clear process.
Settlement and profit sharing, and payment splitting
Settlement and profit sharing settles on a cycle and pays manually or automatically. Payment splitting shares the amount with each level at the moment the user pays, so there is no separate payout. The agent model usually uses settlement and profit sharing. The distributor model can use payment splitting. Both can run at once: some channels use settlement and profit sharing, and some use payment splitting. Settlement and profit sharing must total sales attribution accurately, apply the profit-sharing ratio, generate a settlement statement, and pay after finance reviews it. Settlement and profit sharing is the core incentive in the agent system.
Settlement and profit sharing, and the settlement statement
Settlement and profit sharing generates a settlement statement on the settlement cycle. The statement includes purchase detail, sales detail, and the profit-sharing amount. An agent can view and export it in the agent self-service portal. The enterprise pays after finance confirms the figures. Settlement and profit sharing works with agent-price procurement, the agent price list, and multi-level agents to form a complete agent incentive system. It is one of the core capabilities of channel management on the IoT Cloud Platform.
Profit Sharing Rules Configuration
Profit sharing rules can be configured based on purchase quantity, sales amount, or order quantity, supporting fixed ratio, tiered ratio, and step-based profit sharing. The rules need to be maintained in the platform's configuration interface, supporting differentiation by agent , by data plan , and by hierarchical levels. Profit sharing calculation relies on accurate sales attribution data, and order attribution must be ensured correct. Settlement of profit sharing, together with billing (C-end billing), and operator reconciliation (cost verification), forms a complete financial accounting system.