What is Employee Commision plans?
NetSuite offers businesses a robust solution for managing employee commission plans. These plans are designed to incentivize sales teams and drive performance. With NetSuite’s commission management module, companies can create customized commission structures tailored to their specific needs.
Key features of NetSuite’s employee commission plan include:
Flexible Commission Structures: NetSuite allows businesses to create flexible commission structures based on various factors such as sales volume, product type, or customer segment.
Automated Calculations: NetSuite automates commission calculations, eliminating manual errors and ensuring accurate payouts to employees.
Real-Time Visibility: Employees can access real-time commission data, enabling them to track their performance and earnings.
Integration with Sales Data: NetSuite seamlessly integrates with sales data, providing a comprehensive view of sales performance and commission metrics.
By leveraging NetSuite’s employee commission plan, businesses can incentivize their sales teams effectively and drive revenue growth.
You must create commission schedules before you create a commission plan. You can apply multiple schedules to one commission plan.
You assign sales reps to commission plans. You can assign a rep to only one plan at the same time. If you decide to update a commission plan when it is active, NetSuite recalculates commission for each sales rep in the plan.
Creating an Employee Commission Plan
Commission plans are made up of individual commission schedules. When you assign a commission plan to a sales rep, NetSuite applies all commission schedules to determine the commission earned by the sales rep.
For example, NK Entrepreneurs creates a commission plan called Standard Quota Commission that includes the following commission schedules:
a commission schedule based on percentage of quota fulfilled
a commission schedule based on the number of service plans sold during the period
a commission schedule based on the number of sales to new customers
Go to Lists > Commissions > Employee Plans > New (Administrator).
In the Name field, enter a name for this plan.
Enter a description of this plan.
On the Add Schedules to Plan subtab, select a schedule to include in this plan in the Schedule column.
Click Add.
Repeat these steps for each commission schedule you want to include in this plan.
Click the Assign Plan to Sales Rep subtab.
In the Sales Rep column, select the sales reps to assign to this plan.
In the From column, enter or pick the date this plan takes effect.
In the To column, enter or pick the last date you want this plan to generate commission.
Click Add.
Repeat these steps for each sales rep you want to assign to this plan.
Important: For optimal performance, you should not exceed 50 employees on an employee commission plan.
Click Save.
You can change the plan and the commission schedules included on the plan at any time. When you make changes to a commission plan, NetSuite recalculates commission based on the updated plan.