Distributing Compensation Across Transactions (Oracle Sales Compensation Help)


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Distributing Compensation Across Transactions

Defining Your Data Sources: page - 4 explains how to choose the source transactions--the orders, invoices, or customer payments--on which you want to base your compensation payments. For each revenue class assigned to a plan element, you need to specify how much of the compensation you want Oracle Sales Compensation to award for each type of transaction you collect.

Each sale corresponds to one or more Oracle Sales Compensation transactions, depending on when during the life of the sale your organization pays compensation. Oracle Sales Compensation provides the order, invoice, payment, and other transaction types to choose from.

For example, for some revenue classes, Global Computers stages the compensation payment across the life of the sale, while compensation for other classes is paid all at one time (Figure 7 - 9):

Global Computers has just developed a new model of the Sentinel PC, the Sentinel Multimedia. To promote sales of the new model, Global pays 60% of the total compensation payment when the order is booked, 20% when the invoice is sent to the customer, and the remaining 20% when the customer pays the invoice.

For standard PC models, Global pays all compensation when the invoice is posted.

For education and training, Global pays all compensation upon receipt of payment for the training, before the customer takes a class.

Thus, each sale corresponds to one or more compensation transactions, depending on the revenue class of the transaction.

For each revenue class, you define transaction factors or multipliers on sales credit, for each type of transaction relevant to that class. Transaction factors help you stage net sales credit over the life of a sale, assigning percentages of the transaction amount to the events that are important to your sales organization. In addition to the two key transaction factors invoice and customer payment, Oracle Sales Compensation provides other transaction factors such as credit memos to control the amount of sales credit depending on transaction type.

When calculating the compensation payment, Oracle Sales Compensation multiplies the sales credit by the transaction factor you defined for that transaction type, resulting in net sales credit for the compensation transaction. Oracle Sales Compensation then multiplies the net sales credit by a quota uplift (if you defined one), as explained in Quota Uplifts.

For example, for the Sentinel Multimedia PC revenue class, Global defines a 60% transaction factor for orders, 20% for invoice, and 20% for payment (Figure 7 - 10). For the Standard PC revenue class, Global defines a 100% transaction factor for the invoice transaction type:

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