New Features in Oracle Sales Compensation Release 11
New features in this release are as follows:
Cumulative Quota Target Calculation
This feature allows commission calculations to be based on achievement towards cumulative quota targets, such as Year-to-Date and Quarter-to-Date targets. Previous functionality allowed the commission rate to be determined by comparing achievement to date against a quota defined for the entire interval of period, quarter, or year. With the new functionality, the commission rate can optionally be determined by comparing achievement to date against a period, quarter-to-date, or year-to-date quota. This type of commission calculation allows a company to account for seasonality of sales and respond fairly to upturns and downturns in a salesperson's performance throughout the year.
Discount-Based Commission Calculation
The discount feature allows the sales managers to design compensation plans, which use Percentage Discount on a sale as a factor in determining the compensation rate. The following example lists how companies could use this feature to discourage their sales force from selling products at a price well below the list price.
In this example, the compensation rate and therefore the compensation earned by a salesperson decreases as the discount given on a sale decreases. A salesperson on a discount-based commission plan has the incentive to sell products at a price close to the list price.
This feature also allows compensation rates to be determined either by the discount percentage alone, or by some combination of the discount percentage and the revenue on the sale.
The discount percentage can be applied towards increasing or decreasing the quota achievement to figure commission rates or could be applied towards paying the commission amount after the commission rate is determined, based on the transaction amount.
Margin-Based Commission Calculation
Some companies compensate their sale force or external agents based on profit margins. This is particularly true for companies in the commodities market in which a higher profit margin is critical for remaining competitive. Oracle Sale Compensation lets you use the margin % in determining the commission rate to be applied to the sale.
