1. Implementation Reference
  2. Best Practices for Sales Credits

Best Practices for Sales Credits

Companies use sales credits to report on the performance and quota attainment of their sales personnel. They also use sales credits to aid in compensation calculation and to facilitate forecasting by territories.

Sales credit recipients and revenue amounts roll up the resource hierarchy for pipeline reporting and quota attainment. You assign sales credits to sales resources (salespeople or other sales users) while editing product lines in opportunities. When a product line is first added to an opportunity, the application sets the user who added it, as the sole sales credit recipient. This means that the sole recipient receives 100 percent of the sales credit.

Two types of sales credit exist for opportunities:

  • Revenue sales credit: Typically allocated to salespeople working the deal.

  • Overlay sales credit: Typically allocated to other resources helping out with the deal, such as a product or market specialist. Overlay sales credit is also known as nonrevenue sales credit.

Revenue Sales Credit

When assigning revenue sales credits, keep in mind:

  • Only internal resources are eligible as revenue credit recipients.

  • Revenue sales credits must add up to 100 percent.

  • The Forecast Territory can be set to any territory assigned to the product line with Revenue or Revenue and Nonrevenue Forecast Participation.

Overlay Sales Credit

When assigning overlay sales credits, keep in mind:

  • Both internal and external (for example, partner) resources are eligible as nonrevenue credit recipients.

  • Nonrevenue sales credits doesn't have to add up to 100 percent.

  • If the selected Allocation Style is Proportional to Revenue, the sales credit amounts adjust automatically and proportionally when the product line amount changes.

  • If the selected Allocation Style is Ad Hoc Amounts the sales credit amounts don't change with product line amount changes.

  • The Forecast Territory can be set to any territory assigned to the product line with Revenue or Revenue and Nonrevenue Forecast Participation.

Note: Territories with a Forecast Participation of Nonforecast aren't eligible to be set as the forecast territory on either revenue or nonrevenue sales credits.

Configure Revenue Territory Default Assignment

You can configure the revenue territory assignment default logic to meet your specific business needs for reporting and forecasting the product amounts on an opportunity. When a sales representative creates an opportunity, the opportunity amount gets reported in the sales representative's pipeline and forecasted in their territory. This is achieved through the seeded defaulting logic, part of the revenue territory assignment process, that sets the appropriate credit recipient and forecast territory on the opportunity product lines.

Some companies have territory setup that may result in many overlapping territories assigned to the opportunity products. They may have specific business logic that determines to whom the pipeline from an opportunity should be reported and forecast. For example, the opportunity creator may not be the owning sales representative. Instead the owner of the sale may be determined by the role or geography of the sales representative involved in closing the sale, or the business unit of the sale. Many of these scenarios can be met through appropriate territory setup, the standard revenue territory assignment processing, and subsequent sales credit recipient and forecast territory defaulting logic.

Note: A sales credit recipient selected by a user doesn't get replaced by the application unless the recipient is no longer a qualified credit receiver. The application won't change the recipient if:The application sets the forecast territory owner as the new credit recipient if the preceding criteria isn't met.

This table outlines the predefined deal protection logic to set the forecast territory for each revenue line in the sales credit.

If you're using Deal protection...

If you aren't using Deal protection...

Sets the owner of the revenue line as the Forecast territory's owner. As a result, multiple revenue lines have the same owner after assignment.

Sets the owner of the revenue line as the owner of the forecast territory after setting the Primary forecast territory of the sales credit revenue line.

You can make the revenue line owner deal protected by setting a deal protection period in the MOO_DEAL_PROTECTION_PERIOD profile option. Go to Setup and Maintenance > Manage Opportunity Profile Options and set MOO_DEAL_PROTECTION_PERIOD to a value as required.

If you need to bypass setting the owner of the revenue line as the owner of the forecast territory, you will have to lock the owner either through running a Groovy script while adding the Sales Credit Recipient (SCR). Alternatively, you can set the MOO_DEAL_PROTECTION_PERIOD profile option, as required.

In the trigger createNonRevenueSplitLineAndAssignSCR
add the following lines in places where you're adding the SCR.

splitNonRevenueRow.setAttribute('OwnerLockAsgnFlag','Y');

This will retain the resource that you're adding to the overlay from the territory resources.
From the script, the places are as follows:
1. //==============================================================
// Block of code to create Non-Revenue Sales Credit Splits
//==============================================================
def splitRevenueNonQuotaIterator = nvl(getAttribute("SplitRevenueNonQuota"),null);
splitRevenueNonQuotaIterator?.reset();
if (!splitRevenueNonQuotaIterator?.hasNext()) {
splitNonRevenueRow = splitRevenueNonQuotaIterator.createRow();

splitNonRevenueRow.setAttribute('SplitParentRevnId',getAttribute("RevnId"));
splitNonRevenueRow.setAttribute('SalesCreditTypeCode','NONQUOTA');
splitNonRevenueRow.setAttribute('SplitPercent',60);
splitNonRevenueRow.setAttribute('OwnerLockAsgnFlag','Y'); //<--Added code here
splitNonRevenueRow.setAttribute('ResourcePartyId',Opportunity?.OwnerResourcePartyId);
println('Opportunity?.OwnerResourcePartyId '+Opportunity?.OwnerResourcePartyId)
setAttribute('ResourcePartyId',Opportunity?.OwnerResourcePartyId)

2.
if (splitRevenueNonQuotaIterator1?.hasNext()) {
splitNonRevenueRow = splitRevenueNonQuotaIterator1.createRow();

splitNonRevenueRow.setAttribute('SplitParentRevnId',getAttribute("RevnId"));
splitNonRevenueRow.setAttribute('SalesCreditTypeCode','NONQUOTA');
splitNonRevenueRow.setAttribute('SplitPercent',84);
splitNonRevenueRow.setAttribute('OwnerLockAsgnFlag','Y'); //Added code here
splitNonRevenueRow.setAttribute('ResourcePartyId',newSCR);
splitRevenueNonQuotaIterator1.insertRow(splitNonRevenueRow);
setAttribute('SplitTypeCode','PARENTSPLIT');
setAttribute('ResourcePartyId',newSCR);
println('Inside IF SET ATTRIBUTE.. (!splitRevenueNonQuotaIterator1?.hasNext())....SplitTypeCode' +SplitTypeCode)

Manual Territory Assignment by Administrators

In the sales credits screens, sales administrators can manually assign a sales representative's territory to a product line when the territory hasn't been assigned automatically. Manual assignment allows sales personnel to forecast an opportunity immediately while the territory setup is being reviewed and updated.

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