The Advantages of ERP Software Functionality:

Welcome to one more series of can your ERP do this?

Can your ERP do Sales Force Management & Sales Commission?

In today’s series we will be talking about sales force management and sales commission. SAP B1 has this beautiful functionality called sales force management wherein it has the capability to rank your best sales employee. Based on three important parameters, the first parameter is based on revenue. It can tell you who is your sales employee generating maximum revenue and who is the sales employee generates less revenue for the company. Revenue alone is not the key, sometimes there might be a sales employee who generates lesser revenue but will be more profitable. So that brings us to the second criteria that it even ranks your sales employee by profitability, wherein you can get to see who is your sales employee bringing more profitability to the company and who is less in profitability.

This functionality will help you to differentiate the employees who are generating a lot of revenue but lesser in profitability, whereas people who are pushing less revenue and generating more profitability. salesmen who generate 1 million dollar revenue just get 2 or 3 percent profitability to the company but you will have an employee who does five hundred thousand dollars might get you 15 to 30 percent profitability which is certainly higher than 2 percent profitability over 1 million. So it’s pretty imperative that the system differentiates and ranks your sales employee not only based on the revenue generated but also on the profitability brought to the company. Sometimes revenue and profitability alone are just not important, the salesman has to go back to the customer and do the collection to ensure that the money is brought back to the books. So in this case the system has the capability to rank your sales employee who is best in collection, who only sells more, who only gets the best profitable deals but also ensures collection. The system can go further and rank the employees based on all the 3 criteria’s mentioned.

In this case, we have to input the system at what percentage of each criteria needs to be considered based on which the system will allocate those percentages to the total ranking and aggregated score is generated to rank the employees. Based on the aggregated score the system ranks them as who is the best and who is the worst. Not only this, the system also has the capability to do sales commission calculation, commissions can either be determined by giving a certain percentage on every products sold or giving a certain percentage on value of goods sold. So in either of the cases SAP B1 has provisions in all the sales orders to create sales employee name. If the sales order has multiple line item and each line item belongs to different sales employees then SAP B1 also has that provision to enter different sales employees name for different line items in a sales order based on which the sales commissions are aggregated at the backend. End of the month, the system has the capability to print out the sales commission with all the details and can be handed over to the pay roll department to process the payment. Hope you really like this functionality.

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