The Sales Compensation Package provides a solution for the fast implementation of the company's sales compensation plan. Its purpose is to maintain, control and evaluate execution with the Pricefx application.

Sales Compensation Plan

It outlines the sales agent’s base salary as well as the company’s commission and incentive program with strategy. Commission, bonus, and incentive structure incentivize sales force to reach their objectives in order to earn a deserved reward. Final pay mix together makes up On-Target Earnings. In other words, the amount of money a salesperson is paid in the end.

Sales compensations encourage positive behaviors in your sales teams that are necessary to achieve your overall organizational goals and results.

Business Roles

The following business roles and individuals participate in the processes surrounding the Accelerator’s usage activities.

• Sales Compensation Administrator
  A person who is responsible for the smooth working of all elements. This person takes the plan from the company’s representatives and ensures that individual Sales Managers can create agreements. The person makes sure all salespeople are in the system and individual compensation types and calculation logics that the company uses are present in the system. Sales team changes, adjustments or running plans, contract revisions for a new cycle, or global reporting are activities in their agenda.
  Typically, this person is from Finance or SalesOps department closely cooperating with Sales Managers, HR, and legal team.
  
  

• Sales Manager
  A person who is responsible for the actual creation of individual Compensation Agreements. The person enters conditions into agreements, negotiates details with Sales Agents, and is able to watch progress towards set goals. The Sales Manager also generates reports for those who are not able to access the system on their own. It could be an alternative name for Team Lead.
  
  

• Sales Agent
  A person who actually sells and is also the main recipient of compensations. It could be an alternative name for a Sales Representative, SalesRep, or Salesperson. In the context of this accelerator the terms Seller or Payee are also used.
  
  

Scope of Usage

The Accelerator is a tool used in agendas of the above-mentioned roles. It helps them simplify, automatize, track or define compensation-related work tasks.

• Creating Compensation Agreement
  Compensation Agreement is one unit of the main Sales Compensation Plan. It can encapsulate one or more rules, conditions, exclusions, and time spans that are used for the calculation of the final sum for the Sales Agent. This definition can represent a legal contract.
  
  

• Reporting Progress
  Reporting is an activity that can be done on an agreement level or with a scope of several Sales Agents. Provided reports and dashboards are used for the analysis of the progress of the plan.
  
  

• Plan Maintenance
  Corrections of wrongly accounted transactions, new agreement revisions, definitions for a new period of a year, or replacements in the sales team are common activities associated with a well-defined plan.
  
  

• Providing Transparency
  While creating a quote in Pricefx, sellers can see the related compensation amount.

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  Example of Quote detail page with line items

Dashboards and Reporting

The ability to accurately track and compare progress towards defined goals is an important aspect of successful strategy execution. The package is distributed with a dashboard and set of reports supporting those processes.

• Compensation Dashboards
  Interactive reporting in dashboards is used for a deeper understanding of compensation agreements.
  Users are restricted to see data of their subordinates and their own. You can read more on Dashboards Description (Sales Compensation).
  
  

• Compensation Plan Report
  Here is an example of a basic agreement between the Manager and Sales Agent:

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• Overview Report
  A document summarizing definitions of an agreement with results for each agreement line and total compensation value. This is the one-pager for the agreement in numbers.
  
  

• YTD Report
  It is a simple document showing agreement progress in the current calendar year. It goes into fewer details about each agreement line but focuses on results for the year.
  
  

• Transaction Report
  This report is used for checking all transactions that are included in the calculation of the selected compensation agreement.
  It can be used as an audit supporting tool or document generated when an agreement is fulfilled, see example SC_Transaction_List_Report_SAMPLE.pdf.