¶ Representatives
The system is flexible to create the % (commission) to be calculated on the basis number that the company has agreed to pay a commission to a representative. Same flexibility applies here.
The system could generate a payment order or instruction to the back office system
Sales Representative definition:
Sales Representatives are defined in smartbilling with standard name & address fields. In addition, a hierarchy of up to 5 levels of Sales Agents can be defined (Great-Great-Great-Grandfather & 4 generations below him).
A Sales Agent record also needs to specify the Currency in which the commission is paid, the number of days past the Invoice Due (or Paid) date before Commission is deemed to be earned, the Commission payment period (monthly, quarterly, etc.) and the Commission Payment Cycle (day-of-the-month) on which commission statements are generated.
Finally, each Representative must be assigned a Commission Plan.
¶ Call List
¶ Prospects
¶ Quotes
¶ Commission Runs
Smartbilling allow operators to calculate their sales representative commissions automatically while the clients generate revenue for the company.
Commission Runs should be manually initiated on a periodic basis (monthly, quarterly, etc.) When launching a new commission run, the user is asked to specify the period (month, quarter, etc.) the Commission cycle date (day-of-the-month, etc.) and the Commission Effective Run Date. Smartbilling will then calculate commissions due for all invoice line items and all Sales Agents with the same Commission Cycle, based on the criteria defined in the Commission Plan for each Sales Agent.
Once a Commission Run is created, the smartbilling operator can examine the results; if changes are necessary, the Commission Run is deleted, the changes applied and a new Commission Run is generated. This process repeats until the Commission Run is deemed to be correct. At this point, the Commission Run is posted, and the appropriate G/L accounts are affected with commission expense and commission payable amounts. Once posted, the Commission Reports for each Sales Agent become available in the Agent Portal.
Payment of commissions occurs outside of smartbilling (in the Accounts Payable/Cash Disbursements system). Smartbilling does not keep track of commissions paid or due.
¶ Commission Plans
Smartbilling is smart and allows the operator to create the commission plan. Once more the system is flexible to adapt to the format of the company by selecting fields
Smartbilling currently allows the definition of a commission plan according to the following criteria:
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Service / Product / Charge / Sub-charge
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Contract Type
Commission plan details can further be refined to include restrictions for
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Minimum Price
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Minimum Quantity
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Minimum Margin
When the Commission Plan Detail restrictions are met, the commission calculation can be defined according to the following criteria
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Top-up %: an override percentage paid to the parent agent of the agent receiving the commission. Paid in addition to the commission calculated according to the plan detail.
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First Invoice Bonus: a percentage of the charge revenue paid on the first invoice only. This percentage is in addition to the commission calculated according to the plan detail
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The Plan Detail commission can be calculated according to the following methods:
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$ per unit
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$ per unit over a minimum quantity (quota)
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% of margin
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% of margin over a minimum dollar value
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% of price
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The commission can be calculated upon one of the following conditions is met:
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Invoice has been posted
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Invoice has been paid
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Commission plan details are specified with an effective date and an expiry date, allowing multiple commission plans to be entered into the system as long as their effective periods do not overlap.