Defining Unit Quota Compensation
One way to motivate your sales force is to base compensation on performance against unit quota goals called quotas. Using the unit quota, Oracle Sales Compensation calculates the percentage of quota a salesperson has achieved, then uses that level of achievement to determine the compensation rate for each transaction.
When you use unit quota achievement in Oracle Sales Compensation, you define quota in terms of the number of units for each plan element.
To define Unit 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 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 Quota field, specify the target quota.
Enter the unit goal for the set of revenue classes in the current plan element.
8. In the Payment Type field, select how you want to calculate the transaction from the list of values.
Applied Transaction Amount Percentage: A percentage of the amount of the transaction(s) is paid for each level of unit quota achievement specified in the rate table.
Fixed Amount: A fixed amount is paid for each level of unit quota 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 unit quota achievement specified in the rate table.
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.
11. Verify whether to check or uncheck the Split check box.
Note: The Split check box and the ITD check box cannot be checked at the same time.
12. Verify whether to check or uncheck the ITD (Interval to Date) check box.
When you check the ITD check box, the Distribute Target button becomes active.
Note: The ITD check box and the Split check box cannot be checked at the same time.
13. Choose the Distribute Target button.
The Distribute Target form appears, which lets you customize the target for each interval and distribute the interval target over all the periods within an interval.
See Unit Quota Compensation Examples.
