As a powerful cloud-based ERP system, NetSuite offers robust features for managing sales compensation and motivating your sales team. Here’s what you need to know:
Commission Plans and Schedules:
- Commission Plans: These are the heart of your commission structure. A commission plan defines how you calculate commissions for your sales reps.
- Commission Schedules: Within a plan, commission schedules set the rules for calculating commissions. You can base schedules on various criteria, such as total sales, percentage of quota met, quantity sold, total profit, or profitability.
Enabling the Feature:
- To use the Employee Commissions feature, have an administrator enable it at Setup > Company > Setup Tasks > Enable Features (look for the Employees subtab).
- If your company also offers incentives to partners for sales, explore the Partner Commissions & Royalties feature.
Setting Preferences:
- Head to Setup > Sales > Sales Management > Commissions (Administrator) to configure your commission preferences.
- These preferences determine how and when you pay employee commissions and impact all commissions within your NetSuite account.
Creating Commission Schedules:
- Navigate to Lists > Commissions > Employee Schedules > New (Administrator).
- Define the rules for calculating commissions based on your chosen criteria.
- Whether it’s hitting quotas, total sales, or profitability, commission schedules ensure accurate calculations.
Designing Commission Plans:
- Next, create and assign Employee Commission Plans at Lists > Commissions > Employee Plans > New (Administrator).
- Commission plans include one or more commission schedules.
- You can assign multiple sales reps to a plan, but not to overlapping date ranges.
Real-Time Visibility:
- With NetSuite’s seamless integration, sales reps can view estimated and actual commission in real time via their NetSuite dashboard.
- Commission KPIs serve as powerful motivators for your team, driving performance and transparency.