sample plan: media industry - qcommission is a powerful, flexible

Sample Plan: Media Industry Plan Summary The Media industry is primarily involved in the production, dissemination and consumption of information and content. The Media industry consists of all different sizes of businesses. Media is a fairly general term and can include such industries as Television, Radio, Magazine and Newspaper publications, online publishing and websites. The Media industry plays a very prominent role in our society and economy. Here are few sample plans that help you to gain better understanding about the application’s behavior. The sample plan may be considered as an example to compose your own plan. It may help you in detail to set up the sales commission plan to suit your business needs. The sample data describes sales commission plan for the ‘Media One Publishing’ company. The plan data is in effect for the fiscal year 2006. Sales commission plans are eligible for sales reps and sales managers. The sample plans are established to demonstrate the features of QCommission. If you are not sure how to generate some of the components of the plan, we highly recommend you to get assistance here at [email protected] Maintenance Data The maintenance data are the preliminary data that are used in plan calculation rules to calculate the payout. This section covers all setup data necessary for processing. Calendar The calendar is set for the fiscal year 2006. The calendar starts from January 01, 2006 in a monthly frequency. Company The company is named as “Media One Publishing Company.” The company provides information about the company's address, phone number and other miscellaneous details. You can have only one company for the fiscal year. In the maintenance screen, you are allowed to modify the company information. Payee The payee may be a Sales Representative or a Sales Manager who is associated with a plan in order to calculate the payout. Payee is eligible for only one plan at any point of time during the plan duration. The payees are associated with specific organizational units. The payee data are given below:

Payee Type Payee Id Name Sales Organization Job Category Sales Manager Brady Brady Chicago Sales Manager

Sales Manager Jenifer Jenifer Chicago Business Manager

Sales Rep Robbie Allen Robbie Allen Chicago Sales Representative

Sales Rep Robert Robert Chicago Sales Representative

Sales Rep Sandy Sandy Chicago External Sales Representative

Sales Organization The sales organization structure represents the relationship between the territories in your company. It establishes the reporting hierarchy between lower and higher levels. For example, an organization's top-most level will be the company; beneath the company level is the region that reports to the company, and then territory reports to the region. The sales organization structure is included below: Unit ID Layer Name Media One Publishing Level 1 Media One Publishing Chicago Level 2 Chicago Greater Los Angeles Level 2 Greater Los Angeles Greater New York Level 2 Greater New York International Level 2 International Miami Level 2 Miami San Francisco Bay Level 2 San Francisco Bay Area

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Sample Plan: Media Industry Area

Product The product refers to an item that has physical characteristics or services offered to the customer. The products are categorized based on the levels; they are grouped into Division, Family and Product. Product Layer Magazines Product Level 1 Newspapers Product Level 1 Online Publishing Product Level 1 Incentive The incentives are paid based on the performance of a payee. Incentives differ from one company to another. A payee can have more than one Incentive, and an incentive can have more than one rules associated with it. A performance category is attached to an incentive; used to evaluate, or measure the performance of the payee. Incentive Business Manager Commission Monthly New Sales Commission Monthly Renewal Sales Commission New Sales Sales Manager Roll Up Commission Performance Category The incentives are designed to incent the following performance categories. While setting up incentives, the crediting and calculation should be looked at carefully to figure out which performance category to assign to the incentive.

Performance Category Sales Amount

Transactions In QCommission, invoices are referred to as transactions that are issued to customers to record the sales. Invoices can be imported from QuickBooks, Excel, text files, or can be entered manually. A single transaction contains one or more sales items and these items are referred to as transaction lines. In short, a single transaction may contain several transaction lines. The transaction ID is the common identifier for all transaction lines. You can adjust the values of sales amount, gross profit, payee or territory using the transaction in Maintenance screen.

Plan


Sample Plan: Media Industry The Plan is an integral part of QCommission, as the calculations are made based on the plan set for a payee. The plan is comprised of various entities (such as Payee, Incentive, Goals, Credit Rules, Rate Amount etc.) that are required to set the credit rules, and criteria for calculating the payout amount. A plan can have one or more incentives and each incentive comprises of goals, credit rules (single or multiple) to calculate the payout. The sample plans can be used to study the application’s behavior. Few sample plans are provided below to gain knowledge in setting the plan. You can refer to these sample plans while creating the plan using the sample database. Sales Manager Plan (PL01) Business Manager Plan (PL02) Sales Rep Plan (PL03) External Sales Rep Plan (PL04)

Sales Manager Plan (PL01) This plan is applicable to Sales Managers. The sales managers are associated with specific sales representatives. This plan is constructed for the sales manager, “Brady”. Sales Manager Commission This incentive is paid every month. The Sales Managers gets credit for all sales made by sales reps reporting into them. If the sales rep gets less that 100% credit, then the manager should also get the same amount of credit. The incentive “Sales Manager Commission” is chosen in the Set Incentive form. The monthly frequency is set in the “Payout As Often As” field. Each month, the sales rep will be incented with commission or bonus. In the Include/Exclude, the options “Include In Summary Payout”, “Include in Commission Statement” and “Include Zero Payouts” are checked to include the incentives in the summary payout process, commission statement report and zero payout process.

Set Credit Rule 1: Rollup Commission. In the Basic Crediting of the Set Credit Rule form, the credit amount is set as 100% of the sales amount by default and the payout rate is set as 1.


Sample Plan: Media Industry

In the Additional Crediting of the Set Credit Rule form, the Transaction Category is selected as “Own Territory”.



Set Credit Rule 2: Rollup Commission 1 In the Basic Crediting of the Set Credit Rule form, the credit amount is set as 100% of the sales amount by default and the payout rate is set as 1.



In the Additional Crediting of the Set Credit Rule form, the Transaction Category is selected as “Own Territory”.


Sample Plan: Media Industry In the Set Credit Level form, the “Treat every credit as a Commissionable credit” radio option is selected.

In the Calculate Payout form, “Use Standard Payout Calculation Calculated Payout Amt = Credit Amt * Commission Rate” radio option is selected as a criterion to calculate the payout amount.

In the Set Summary Payout form, the “Set Summary Payout Amt to be equal to Total Calculated Payout Amt” radio option is selected.



Business Manager Plan (PL02) This plan is applicable to Business Managers of divisions. This sample plan is constructed for the business manager, “Jenifer”. Business Manager Commission The business manager gets credit for all sales made within the division. The business manager commission is paid at 1% of all sales. The incentive “Business Manager Commission” is chosen in the Set Incentive form. The monthly frequency is set in the “Payout As Often As” field. Each month, the sales rep will be incented with commission or bonus. In the Include/Exclude, the options “Include In Summary Payout”, “Include in Commission Statement” and “Include Zero Payouts” are checked to include the incentives in the summary payout process, commission statement report and zero payout process.

In the Basic Crediting of the Set Credit Rule form, the credit amount is 100% of Sales Amount and the payout rate is set as 1.



In the Additional Crediting of Set Credit Rule form, the Transaction Territory as “Chicago” is selected from the pull-down list.

In the Set Credit Level form, the “Treat every credit as a Commissionable credit” radio option is selected.



In the Calculate Payout form, the “Use Standard Payout Calculation Calculated Payout Amt = Credit Amt * Commission Rate” radio option is selected.

In the Set Summary Payout form, the “Set Summary Payout Amt to be equal to Total Calculated Payout Amt” radio option is selected.



Sales Rep Plan (PL03) This plan is applicable to sales reps that are employees in the company. The sales people are paid for New and Renewal sales as well as a draw. The plan is constructed for the sales reps, “Robbie Allen” and “Robbert”. Now you can see the sales rep plan for the payee “Robbie Allen”. Monthly New Sales Commission This incentive is paid every month. The sales people have a Monthly Quota. Sales rep gets credit for any NEW sales made by him/her. Any UPSELLs are also considered New sales for the purpose of this incentive. In addition if the sales rep is involved in any sales that belongs to a different market or division, the sales rep gets a 50% credit for those sales. The incentive “Monthly New Sales Commission” is chosen in the Set Incentive form. The monthly frequency is set in the “Payout As Often As” field. Each month, the sales rep will be incented with commission. In the Include/Exclude, the options “Include In Summary Payout”, “Include in Commission Statement” and “Include Zero Payouts” are checked to include the incentives in the summary payout process, commission statement report and zero payout process.

The quotas/goals are entered for 12 periods. This plan is designed to incent the sales rep with commission for each month of the fiscal year (2006). The monthly quotas for the sales rep are given below in the picture:



Set Credit Rule 1: Credit Different Territory In the Basic Crediting of the Set Credit Rule form, the transaction of the Payee ID selected as Robbie Allen, will be considered for calculation process. For every qualified transaction, the credit amount will be 50% of Sales Amount.

In the Additional Crediting of the Set Credit Rule form, the “New Sales” is selected from the Transaction Group pull-down list and the “Other Territory” is selected from the Transaction Category pull-down list. The sales rep is eligible for the invoices those are associated with New Sales.



Set Credit Rule 2: New Sales In the Basic Crediting of the Set Credit Rule form, the transaction of the Payee ID selected as Robbie Allen, will be considered for calculation process. For every qualified transaction, the credit amount will be 100% of Sales Amount.



In the Additional Crediting of the Set Credit Rule form, the “New Sales” is selected from the Transaction Group pull-down list and the “Own Territory” is selected from the Transaction Category pull-down list. The sales rep is eligible for the invoices those are associated with New Sales.


Sample Plan: Media Industry Set Credit Rule 3: UpSell Different Territory In the Basic Crediting of the Set Credit Rule form, the transaction of the Payee ID selected as Robbie Allen, will be considered for calculation process. For every qualified transaction, the credit amount will be 50% of Sales Amount.

In the Additional Crediting of the Set Credit Rule form, the “Up-sell sales” is selected from the Transaction Group pull-down list and the “Other Territory” is selected from the Transaction Category pull-down list. The sales rep is eligible for the invoices those are associated with Up-sell sales.



Set Credit Rule 4: Upsell Same Territory In the Basic Crediting of the Set Credit Rule form, the transaction of the Payee ID selected as Robbie Allen, will be considered for calculation process. For every qualified transaction, the credit amount will be 100% of Sales Amount.



In the Additional Crediting of the Set Credit Rule form, the “Up-sell sales” is selected from the Transaction Group pull-down list and the “Own Territory” is selected as Transaction Category pull-down list. The sales rep is eligible for the invoices those are associated with Up-sell sales.

In the Set Credit Level form, the “Treat every credit as a Commissionable credit” radio option is selected to process the transactions individually.

In the Specify Rate Amount form, the New Sales RateLkp is set to calculate the payout amount. The payout rate is calculated by comparing the ranges of attainment percent and commission rate.



If the attainment percent crosses the threshold, the sales rep will be eligible for a split payout; the invoice amount that falls below the threshold gets the lower rate, the invoice amount that goes above the threshold gets the higher rate. The commissions are paid for each individual transaction based on the transactions attainment against the monthly goal.

0% - 80% = 5% 80.001% - 100% = 8% 100.01% - 150% = 10% 150.001% - 99999999% = 12% In the Calculate Payout form, the “Use Standard Payout Calculation Calculated Payout Amt = Credit Amt * Commission Rate” radio option is selected to calculate payout.

In the Set Summary Payout form, the sales rep is eligible for the draw amount $1500 each month; then the draw balances are carry forwarded to the next period and deducted against future earnings.



Monthly Renewal Sales Commission The incentive “Monthly Renewal Sales Commission” is chosen in the Set Incentive form. The monthly frequency is set in the “Payout As Often As” field. Each month, the sales rep will be incented with commission. In the Include/Exclude, the options “Include In Summary Payout”, “Include in Commission Statement” and “Include Zero Payouts” are checked to include the incentives in the summary payout process, commission statement report and zero payout process.

In the Basic Crediting of the Set Credit Rule form, the transaction of the Payee ID selected as Robbie Allen, will be considered for calculation process. For every qualified transaction, the credit amount will be 100% of Sales Amount and the payout rate is set as 3.



In the Additional Crediting of the Set Credit Rule form, the “Renewal orders” is selected from the Transaction Group pull-down list. The sales rep is eligible for the invoices that are associated with Renewal orders.




In the Calculate Payout form, the “Use Standard Payout Calculation Calculated Payout Amt = Credit Amt * Commission Rate” radio option is selected to calculate payout.

In the Set Summary Payout form, the sales rep is eligible for the draw amount $1500 each month; then the draw balances are carry forwarded to the next period and deducted against future earnings.



External Sales Rep Plan (PL04) This plan is applicable to external sales reps that are not direct employees in the company. The sales people are paid for New and Renewal sales as well as a draw. The plan is constructed for the external sales rep, “Sandy”. Monthly New Sales Commission This incentive is paid every month. The sales people don’t have a quota. Sales rep gets credit for any NEW sales made by him/her. Any UPSELLs are also considered New sales for the purpose of this incentive. In addition if the sales rep is involved in any sales that belongs to a different market or division, the sales rep gets a 50% credit for those sales. The credits are provided to the sales rep as soon as the invoice is generated for the orders. The incentive “Monthly New Sales Commission” is chosen in the Set Incentive form. The monthly frequency is set in the “Payout As Often As” field. Each month, the sales rep will be incented with commission. In the Include/Exclude, the options “Include In Summary Payout”, “Include in Commission Statement” and “Include Zero Payouts” are checked to include the incentives in the summary payout process, commission statement report and zero payout process.



Set Credit Rule 1: Credit Different Territory In the Basic Crediting of the Set Credit Rule form, the transaction of the Payee ID selected as Sandy, will be considered for calculation process. For every qualified transaction, the credit amount will be 50% of Sales Amount and the Payout Rate is set to 12.


Sample Plan: Media Industry In the Additional Crediting of the Set Credit Rule form, the “New Sales” is selected from the Transaction Group pull-down list. The sales rep is eligible for the invoices those are associated with New Sales.

Set Credit Rule 2: New Sales In the Basic Crediting of the Set Credit Rule form, the transaction of the Payee ID selected as Sandy, will be considered for calculation process. For every qualified transaction, the credit amount will be 100% of Sales Amount and the Payout Rate is set to 12.



In the Additional Crediting of the Set Credit Rule form, the “New Sales” is selected from the Transaction Group pull-down list. The sales rep is eligible for the invoices those are associated with New Sales.



Set Credit Rule 3: UpSell Different Territory In the Basic Crediting of the Set Credit Rule form, the transaction of the Payee ID selected as Sandy, will be considered for calculation process. For every qualified transaction, the credit amount will be 50% of Sales Amount and the Payout Rate is set to 12.



In the Additional Crediting of the Set Credit Rule form, the “Up-sell sales” is selected from the Transaction Group pull-down list. The sales rep is eligible for the invoices those are associated with Up-sell sales.



Set Credit Rule 4: Upsell same Territory In the Basic Crediting of the Set Credit Rule form, the transaction of the Payee ID selected as Sandy, will be considered for calculation process. For every qualified transaction, the credit amount will be 100% of Sales Amount and the Payout Rate is set to 12.



In the Additional Crediting of the Set Credit Rule form, the “Up-sell sales” is selected from the Transaction Group pull-down list. The sales rep is eligible for the invoices those are associated with Up-sell sales.



It uses both the draw and cap as Set Summary Payouts. The sales rep is eligible for the draw amount $1500 each month, the draw balances are carried forward to the next period and deducted against future earnings.

Monthly Renewal Sales Commission The incentive “Monthly Renewal Sales Commission” is chosen in the Set Incentive form. The monthly frequency is set in the “Payout As Often As” field. Each month, the sales rep will be incented with commission. In the Include/Exclude, the options “Include In Summary Payout”, “Include in Commission Statement” and “Include Zero Payouts” are checked to include the incentives in the summary payout process, commission statement report and zero payout process.



In the Basic Crediting of the Set Credit Rule form, the transaction of the Payee ID selected as Sandy, will be considered for calculation process. For every qualified transaction, the credit amount will be 100% of Sales Amount and the payout rate is set as 7.

In the Additional Crediting of the Set Credit Rule form, the “Renewal orders” is selected from the Transaction Group pull-down list. The sales rep is eligible for the invoices that are associated with Renewal Orders.



This plan uses both the draw and cap as Summary Payouts. The sales rep is eligible for the draw amount $1500 each month, the draw balances are carried forward to the next period and deducted against future earnings.

Calculate Plan The plan wizard guides you in setting the credit rules, calculations and summarization in order to calculate the payout. The credit amount and payout rates for payees will be calculated based on credit rules set in the plan wizard. Credit rules defines how a specific transaction can be processed, and who receives the credit. The crediting process is applied to the transaction to determine the credit amount in-order to calculate the payout of the selected payee. The plan and its rules are set prior to calculating the plan for the payees. There are two ways to calculate the plan. You can calculate all the plans for the current period by selecting "Calculate All Plans" from the Action menu. If you want to execute the plan for a single payee, click the Plan tab and select the payee plan tab that is available at the bottom of the screen. The appropriate plan statement opens for the selected payee. To view the commission statement, click the Statements tab that is available at the top of the screen.


sample plan: media industry - qcommission is a powerful, flexible

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