Sales Quota Plan Components

Quotas are a reflection of sales targets you set for individuals in your sales organization. You distribute quotas to child territories through the sales territory hierarchy until all territories and their owners have quotas.

This chart shows a sales quota plan with several territories, each assigned a quota. Territory quota formulas compute projected quotas based on historical sales information and metrics such as forecasts and market potential. The projected quotas appear as default territory quota amounts. A spread formula allocates quota based on the contribution of each of the territories. Individual resources also receive quotas.

Territories

You can create more than one sales quota plan, each for one year. Active territories become part of the new quota plan, and you can add territory proposals to allow the setting of quotas for proposed territories. The plans are inactive until you activate one for the year. You can designate only one plan to be used for tracking quotas for the year.

When sales administrators or sales managers create new proposed territories, such as for a territory realignment, they can enable the setting of quotas for the proposed territories by selecting Eligible for Quota. If you then associate the proposals to your quota plan, you see the proposed territories within the current active territory hierarchy, and salespeople will be able to assign quotas to the proposed territories.

Territories and the resources assigned to them change frequently. You should schedule the Synchronize Quotas process to run daily so that current and future quota plans that are active will use the latest territory hierarchy.

Plan Options

Setting the available options for the quota plan isn't required. You can select an adjustment threshold, a territory quota formula, and a seasonality factor group to apply to all or to individual territories. Territory options override sales quota plan options. For example, the territory quota formulas and seasonality factor groups selected for individual territories override those set at the quota plan level. You can also set a threshold percentage for adjustment amounts that managers often add to quotas.

This chart illustrates splitting the quarterly quota over each month through seasonality factors that raise or lower quota amounts according to seasonal fluctuations.