Sales Compensation System  

Sales Compensation Management

Sales compensation is typically the largest part of cost of sales. A well managed sales compensation leads to well managed sales cost.


Sales Compensation System


This page gives you the typical capability for a sales compensation management system

Sales Compensation Management system is not a business intelligence tool, and therefore we are not going to list it in the 'tools domain'. However, we are going to have topics dedicated to the systems linked to a given functional domain. As the quality and capability of source systems plays an important part in a good Business Intelligence delivery, understanding the typical features of a source system will help you in your Business Intelligence objectives. The following are the ideal capabilities, which may OR may not be available in a single system and all of these features collectively may not be 'must' features for many organizations.

Sales Commission and Incentives configurability:

Ability to configure the commission and incentives on the basis of:

  • Sales value
  • Sales units
  • Products
  • Channel
  • Time period
  • Sales unit
  • Sales location
  • Sales Campaign

Sales Commission and Compensation Calculations

  • Menu based calculation OR ability to write calculation formulae
  • Ability to calculate the compensation on online OR at different points:
    • Week
    • Month,
    • Year
    • Any specific date
    • Online

Sales Compensation Publishing

  • Generation of feeds for Sales Reporting at detailed OR summary level OR for data warehousing
  • Web Publishing
  • E-mail publishing
  • Schedule and online publishing

Interface with Sales Channel/Distribution management system

In case the sales compensation system is separate from the sales/distribution management system, there should be an online interface between these two systems. The Sales compensation system ideally should not have any separate master tables (sales person master, product master, location master..), but should be able to refer to the master tables in the sales/distribution system.

Interface to other systems

Ability to effectively interface with the accounting, business modeling, data warehouse platforms.