Defining Unit Non Quota Compensation
One way to motivate your sales force is to base compensation on the quantity of products or services sold. Oracle Sales Compensation uses that level of achievement to determine the compensation rate for each transaction.
The achievement or quantity of products or services sold determines the compensation rate to be applied. Use this type of plan element when you want to create incentives for salespeople (or external agents) to sell a large quantity of products or services when there is no specific quota defined.
To define Unit Non Quota compensation:
1. Open the Plan Elements window.
2. Name the plan element and provide a description.
3. For Active Periods, enter the start and end dates when this plan element can be assigned.
These dates must be within the dates of the compensation plan(s) the plan element is assigned to.
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. For Element Type, select Unit Non Quota.
6. In the Apply Txn (Transaction) field, select how you want to calculate the transaction 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.
7. 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 achievement specified in the rate table.
Fixed Amount: A fixed amount is paid for each level of 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 achievement specified in the rate table.
8. 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.
9. Choose the Revenue Classes button to assign one or more revenue classes to this compensation plan element. (See Assigning Revenue Classes.)
10. Verify whether to check or uncheck the Accumulate check box.
The Accumulate check box lets you have the option of accumulating or not accumulating units 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 number of units achieved to date. When the Accumulate check box is unchecked, the rate table bracket is selected based on the number of units for each transaction. (See Defining Accumulative Commission.)
11. Verify whether to check or uncheck the Split check box.
12. 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.
See Unit Non Quota Compensation Examples.
