Defining Revenue Non Quota Compensation
Revenue non quota plan elements compensate for the actual amount of revenue the salesperson has earned. Oracle Sales Compensation calculates the revenue level a salesperson has achieved. It then uses that level of achievement to determine the compensation rate for each payment calculation.
The compensation rate can be based on a cumulative revenue level or on the revenue for each individual transaction. For example, if a salesperson who has achieved $10,000 in revenue achieves another $5,000 in a new transaction, Oracle Sales Compensation calculates the compensation rate differently depending on whether the revenue level is cumulative (in this case, $15,000) or per transaction (in this case, $5,000). See Defining Compensation Rates for more information about rate tables and see Defining Accumulative Commission.
This type of plan element is typically used to compensate external sales representatives where it is not appropriate to define a quota.
To define Revenue Non Quota compensation:
1. Open the Plan Elements window.
2. For Element Type, select Revenue Non Quota.
3. In the Apply Txn field, select when you want to calculate compensation from the list of values:
Individually: Each transaction is calculated individually. The commission can be viewed for each period in the subledger, or seen in the commission amount column of the transaction itself.
Grouped by Interval: Transactions are grouped and calculated once at the end of the interval. Only one rate table lookup is required for the interval, which uses the total accumulated amount. The commission can be viewed in the salesperson's subledger in the last period only, of each interval.
The commission amount cannot be seen on the transaction itself, because the commission is not calculated for each individual transaction.
Payment uplifts for the revenue classes are not used in the Grouped by Interval plan elements.
4. For Interval Type, choose the type of time interval for which this plan element is defined:
Period: The quota and payment targets are defined on a period basis.
Quarter: The quota and payment targets are defined on a quarterly basis.
Year: The quota and payment targets are defined on a yearly basis.
5. Verify whether to check or uncheck the Accumulate check box.
The Accumulate check box lets you have the option of accumulating or not accumulating transaction amounts to determine the rate in the rate table. When the Accumulate check box is checked, the rate table bracket is selected based on the total revenue achieved to date. When the Accumulate check box is unchecked, the rate table bracket is selected based on the revenue for each transaction. (See Defining Accumulative Commission.)
6. In the Payment Type field, select how the payment is calculated from the list of values.
Applied Transaction Amount Percentage: A percentage of the amount of the transaction(s) is paid for each level of revenue achievement specified in the rate table.
Fixed Amount: A fixed amount is paid for each level of revenue achievement specified in the rate table.
Payment Amount Percentage: A percentage of the payment amount you specify in the Payment field is paid for each level of revenue achievement specified in the rate table.
7. Verify whether to check or uncheck the Split check box.
8. In the Discount Option field, select an option from the list of values.
None: The discount percentage on the sale has no effect on the commission.
Payment: The discount percentage on the sale affects compensation payments only.
Quota: The discount percentage on the sale affects the achievement towards quota, and may affect compensation payment.
9. In the Rate Table field, select a rate table from the list of values where the From/To rate tier is percentage or amount, and the commission is either percentage or amount based on the Payment Type field:
Applied Transaction Amount Percentage: The commission rate is percentage.
Fixed Amount: The commission rate is amount.
Payment Amount Percentage: The commission rate is percentage.
10. Choose the Revenue Classes button to assign one or more revenue classes to this compensation plan element. (See Assigning Revenue Classes.)
See Revenue Non Quota Compensation Examples.
