Sales Target Examples

Description

In this document, you will find several examples of targets that can be defined using iDynamics Commissions.

Note

For these examples, global sales targets have been set, so that it's easier to read the sales target amount, but they would work the same by setting a different sales target for each salesperson and specifying an Achieved % instead of a Min. Amount.

Examples

Global Commission With No Requirements

This is the simplest case that can be set up. No quantity or amount requirements are set. In this example, all salespeople included in the sales target will receive a 2% commission when the period ends, as long as they have posted at least one sales order.

Min. Amount	Min Margin %	Min. Qty	Fixed Commiss. Amount	Commiss. %
0	0	0	0	2

Minimum Sales Requirements

This is similar to the previous example, but requiring a minimum amount of sales. In this case, only salespeople that have sold more than 10,000 (in local currency), with a sales margin of 10% or higher, and 20 units (in the base unit of measure), will get a 2% commission.

Min. Amount	Min Margin %	Min. Qty	Fixed Commiss. Amount	Commiss. %
10,000	10	20	0	2

Highest Commission

Let's start with the following target ranges:

Min. Amount	Fixed Commiss. Amount	Commiss. %
0	0	2
10,000	100	3
40,000	200	4
100,000	500	5

If a salesperson has achieved sales of 50,000 (local currency), and Highest has been configured for the commission calculation of both fixed and percentage commission amounts, the salesperson will get 200 (local currency) and a 4% commission, as the first three targets have been achieved.

Cumulative/Tiered Commission

If the same target ranges as in the previous example have been defined:

Min. Amount	Fixed Commiss. Amount	Commiss. %
0	0	2
10,000	100	3
40,000	200	4
100,000	500	5

And the salesperson has achieved sales of $50,000 (dollar being the local currency), but Cumulative has been configured for the fixed commissions, the salesperson will receive $300 (100+200) as the fixed commission amount.

For the percentage, if Tiered has been selected, the salesperson will get 2% on the first $10,000, a 3% commission on the next $30,000, and 4% on the remaining $10,000. Basically, every time a minimum amount is achieved, the % changes accordingly.

Note: if no percentage has been set for a $0 minimum amount (that is, the salesperson doesn't get any commission if sales are below $10,000), the first commission percentage specified (3%) would also apply to the first $10,000.

Same Amount, Different Quantity

What happens if we configure two targets with the same amount but different quantities?

Min. Amount	Min Margin %	Min. Qty	Commiss. %
10,000	0	0	3
10,000	0	40	4
10,000	20	00	5

If the salesperson has sold more than $10,000 (dollars being the local currency), the first line would apply if fewer than 40 units have been sold, the second line would apply if 40 or more units have been sold, and the third will apply if the sales margin has been 20% or higher.

Note that the app will always apply the highest commission % that has been achieved. This means that if, in this example, the salesperson has both sold more than 40 units and achieved a margin of 20% or higher, a 5% will apply, as that is the highest commission % of all the achieved targets.