Business pioneers are constantly into digging new methodologies and strategies for improving their sales thereby generating more profits out of them. However, during the marathon of generating more profit and sales in business, the frequently neglected aspect is the worker happiness and their commitment. Often the business fails in keeping its employee's contempt.
Luckily for administrators or the executives, there are few programs like Sales Incentives or simply saying the Incentive Compensation Programs that can handle the worker issues without a moment's delay.
These incentive programs can help the organization in a wide assortment of ways like- building a positive workplace and an expansion in quality performance. With Incentive programs, employees will be encouraged to perform more, keeping the game spirit. This can be the well-known reason that officials search out for the incentive plans so that they can generate more sales in their business.
By offering rewards or bonuses, merit increments and different prizes to employees who meet sales targets, the manager can constantly inspire their sales team in closing more deals, which will result in better sales numbers. Salesmen, like most workers in any industry, are propelled by these monetary incentives. It is seen that offering additional pay for their performance will boost sales, rapidly and viable.
Cybrosys Technologies have come up with an Odoo app: Sales Incentives that aid the businesses to efficiently and precisely calculate a salesman’s incentive based on his performance i.e. achieving the desired target set by the company.
The application crafted under Odoo ERP thus enables the business organization to seamlessly design, track and pay the sales incentives to a salesperson. The easy-to-use Odoo app is built in Odoo’s latest version Odoo V12 and comes compatible to Odoo Community Edition.
The module efficiently performs the sales incentive management of an individual based on his achieved target. The Sales Incentive module, helps the user to set the incentive calculation based on the invoiced amount or the received amount.
The Odoo app functionality includes:
a) Managing and calculating sales incentives based on criteria- the achieved target.
b) Tracking of the incentive payments to employees.
c) Helping the account team in updating the status of both paid and unpaid incentives.
Cybrosys Sales Incentive application module offers the end user with the following features:
Incentive Generation based on:
> Linear Method
> Tiered Commission Plan
Incentive Calculation based on:
> Fixed amount
Now let us see the workflow for a better understanding of the App functioning.
Under the Odoo app, the sales manager can seamlessly set the sales target for a salesperson. This action can be executed via creating a challenge in gamification module.
For this, go to CRM ->Challenges
Challenges - Create a challenge.
Under the challenge, the manager needs to set the target as the total invoiced amount and target value as the amount to be reached in this challenge. The users to whom this challenge need to be assigned can also be selected here. Thereafter, the manager or user can set the periodicity as 'monthly', 'weekly' or 'yearly', based on which the incentives will be calculated.
The app enables the end user to set the target value to reach. The incentive calculation will be based on this target.
Go to CRM -> Challenges -> Goals
The user can see the target set for the challenge and achievement made by each salesperson. Based on this target and achievement, the incentive can be calculated for each salesperson.
One can create the incentive calculation method in CRM -> Challenges -> Incentive Scheme.
Here, the user can select 'Linear or Tiered Commission Plan' as the method for calculation. In the 'achievement%' column, one can give the minimum achievement percentage to be acquired by the salesman for getting the incentive.
In the 'reward' column, the end user can specify the reward when this achievement% is reached. If the 'Type' column is selected as 'percentage', then the reward column will be considered as a percentage of amount to be given for this achievement. If 'Type' is 'amount', then reward will be the amount specified in the reward column.
Later one need to click on 'compute incentive' button to calculate incentive based on the given settings.
If the selected method is 'linear', then 'compute incentive' will calculate incentive based on linear method. For example, if the target is 10,00,000 and the achievement is 6,90,000, i.e. 69%, the incentive for the following will be calculated on 50% slab.
So, the incentive for up to 50% achievement will be 2%, and incentive will be 2% of the achievement (6,90,000). i,e.13,800. If the type is given an amount, then that amount will be given as an incentive.
In 70% slab, the incentive is given an amount 10,000. So, for 89% achievement, the incentive will be 10,000 as given in the slab settings. The lowest achievement% given in slab settings will be considered as the minimum achievement percentage. One can set the amount to be given for each achievement in the settings.
If the selected method is 'Tiered Commission Plan', then 'compute incentive' will calculate the incentive based on an incremental basis. For example, Consider target is 10,00,000 and achievement is 6,90,000. The reward for 50% in slab is 2% and reward for 70% in slab is 10,000 and the target is 10,00,000.
So, we take 50% of the target, that is 5,00,000 and give 2% reward for 5,00,000. i.e. 10,000, remaining 19% will be given as a reward of next achievement% specified in the slab settings. Considering 70% as the next achievement specified in slab settings and reward for 70% is 10,000 and type is amount, therefore the incentive for the remaining achievement of 19% will be 10,000. Total incentive becomes 20,000. If the type selected is a percentage, then the incentives will be the reward for the remaining percentage.
One can submit the incentives for approval when the end date is reached. If the incentive is calculated on a monthly basis, later it can be submitted for approval at the end of the month. One can refresh the challenge in order to get the next month calculations and to submit previous month incentives for approval.
To refresh challenge, go to CRM -> Challenges -> Challenges and select the challenge used in incentive calculation, click on 'refresh challenge' button. Now when you compute the incentive again, you can submit the previous month incentives via clicking on 'Submit for approval'.
Upon the action, the status will become 'submitted to accountant' and the submitted incentives will be sent for approval.
An accountant can see the submitted incentives in Invoicing -> Incentive -> Incentives to Approve
An Accountant can either approve or reject the submitted incentives.
If approved, then the state changes to paid and automatically journal entry will be created for this incentive in the draft state.
On the other hand, if the accountant rejects the submitted incentive, the status changes to rejected.
Approved incentives will have an entry in the journal as a draft.
Cybrosys have crafted numerous applications in Odoo sales and other management modules. To have a look, kindly go to Cybrosys Odoo Apps