Filtering Sales Credit
Revenue classes help Oracle Sales Compensation determine whether to award compensation for the type of revenue represented in each compensation transaction. Here's how the process works:
1. You assign sales credit.
In billing systems, you assign sales credits to credit receivers--the salespeople responsible for generating that revenue. Depending upon the billing system, you may assign credit receivers for the entire order or for each line-item in the order.
2. Oracle Sales Compensation collects the compensation transaction.
When you run the process to collect compensation transactions, Oracle Sales Compensation collects one compensation transaction for each sales credit assignment.
The transaction contains the name of the credit receiver, the amount of sales credit, and other information.
3. Oracle Sales Compensation classifies the transaction.
Oracle Sales Compensation assigns a revenue class to the transaction by comparing attributes of the transaction to revenue classification rules you define for each revenue class. See Defining Revenue Classification Rules.
4. Oracle Sales Compensation matches the revenue class of the transaction to a class on the credit receiver's compensation plan.
Oracle Sales Compensation "filters" the assigned sales credit by determining whether the salesperson can receive compensation for that type of revenue. If the revenue class of the transaction matches a class on the salesperson's compensation plan, the salesperson receives compensation; if no match is found, the salesperson does not receive compensation.
Oracle Sales Compensation uses a revenue class hierarchy, a hierarchical arrangement of revenue classes and their subclasses, to find matches between revenue classes. See Arranging Revenue Classes into a Hierarchy.
Note: A salesperson can receive sales credit from order or billing systems, yet not receive compensation if the revenue class does not exist on the salespersons compensation plan.
Figure 3 -3 shows an example of how Oracle Sales Compensation classifies revenue and uses the classification to award compensation. Global Computers, Inc. processes an $8000 invoice for Consulting services. In Oracle Receivables, Global splits sales credit for the transaction between two salespeople--Pat Smith and Kelly Wilcox. Credit receiver Pat Smith receives compensation because the compensation plan to which Pat is assigned pays for sales from the Consulting revenue class. Oracle Sales Compensation does not award compensation to credit receiver Kelly Wilcox, because Wilcox's compensation plan does not pay compensation for sales from this revenue class.
