Boosting Sales with Odoo 18

In this competitive era, businesses like yours constantly seek ways to optimize their sales strategies and reward their teams effectively. With Odoo 18, a powerful feature was released to address this need head-on: Our commissions module was designed with flexibility and ease-of-use in mind. This new functionality adds great value to your performance management as it allows your organization to effortlessly create and handle sales commission plans while driving motivation and improving sales results. Let’s dive into how the commission's feature works and the value it brings to your business.

Set Up Commission Plans

The initial step in working with commissions is to establish your unique set of commission plans. These plans outline the calculation and application of individual commissions, ensuring equitable and transparent compensation for sales teams. Commission plans can be configured based on various criteria:

• Amount Invoiced: The commission is calculated on the total value of posted invoices.
• Amount Sold: The commission is calculated on the total value of products or services sold.
• Quantity Invoiced: The commission depends on the number of products invoiced.
• Quantity Sold: The commission is based on the number of products sold, regardless of invoicing.
• MRR (Monthly Recurring Revenue): The commission is calculated on the recurring monthly revenue from subscriptions.

Additionally, commissions can be applied to specific products, categories, or recurring plans, with a commission rate set for each rule to determine each of your salespersons' earnings.

Commission plans can be structured based on targets or achievements and can apply to individual salespeople or entire sales teams. Each plan has an effective period and a target frequency, which can be set to monthly, quarterly, or yearly.

Commission Plans Based on Targets

Commission plans that are target-based are especially motivating because they provide financial incentives tied to measurable goals. Once salespeople meet or exceed predetermined targets linked to sales figures, revenue, or other performance metrics; these plans effectively align individual performance with your company objectives. This clear structure with a defined benchmark for success makes target-based plans perfect for organizations focused on setting and tracking concrete sales goals for their teams.

Commission Plans Based on Achievements

Achievement-based commission plans reward salespeople for sales results, regardless of specific targets. Commissions are tied to performance metrics, often with tiered rates that increase with success. This motivates your salespeople by linking effort to reward and benefits top performers. These plans are flexible and suit sales models where consistent performance is rewarded, even if not strictly tied to company goals.

Managing Commissions

Odoo provides you with different views to track and manage commissions effectively once the commission plan is established.

• My Commissions: This view allows users with restricted access to the sales application to see and manage their commissions. It includes different periods with achieved commission amounts, along with a breakdown of invoices that contribute to each commission.
• Commissions Overview: Sales administrators can access the Commissions menu to view and manage all users' commissions, providing a comprehensive overview of earned commissions across the organization.
• Achievements: This view displays all commission records and their source documents. It helps you track sales contributions to commission earnings. Sales administrators can see all records, while individual salespeople only see their own.
• Reporting: Odoo offers a default commission report in the Sales application's Reporting menu. This report enables analysis of commission earnings across different periods and salespeople, providing you with valuable insights into individual and overall sales performance.

Adjusting Commissions

Odoo's commission management system is designed to be flexible, acknowledging that commission amounts may need to be adjusted after the initial calculation. This could be due to various reasons, such as:

• Product Returns: If a customer returns a product, the salesperson's commission associated with that sale may need to be reduced or reversed.
• Pricing Errors: If a product was sold at an incorrect price, the commission calculation might be affected, requiring an adjustment.
• Discounts and Promotions: Post-sale discounts or promotions could also impact the final commission amount.
• Manual Corrections: In some cases there might be a need for manual corrections due to data entry errors or other unforeseen circumstances.

This way, Odoo provides the functionality for managers to make these necessary adjustments directly within the system, ensuring the calculations are accurate and reflect the actual sales performance.

More Great Features

If your business pays salespeople a percentage of sales, Odoo offers the Reseller Commission for Subscription app. This feature helps you track and manage salesperson commissions based on a percentage of product sales or orders, ensuring accuracy and efficiency.

Key Benefits and Workflow

After installing the app, create a Commission Plan in CRM to set commission rules for resellers. The plan will have assigned a default product for commissions that is configured to the correct expense account. To assign commissions:

1. Assign the salespeople to a Partner Level with an associated commission plan.
2. When creating a Sales Order, add the salesperson as the referrer, and the commission amount will be automatically calculated and displayed at the bottom of the order.
3. Once the order is invoiced and paid, Odoo generates a Request for Quotation (RFQ), listing the salesperson as a vendor.
4. The RFQ converts into a bill, ensuring accurate financial tracking and smooth payment processing.

With this automated system, your company can efficiently manage external sales commissions, with minimal manual effort, giving you accurate payments to your sales teams.

Benefits for Your Business

Adopting Odoo's commission module can offer your business significant advantages:

• A Motivated Team: Having structured a good commission plan will push the sales representatives to go the extra mile which will ultimately result in a revenue increase for your business.
• Extended Productivity: Work is simplified and less time-consuming under automation. This means your team can dedicate time to more important strategies rather than routine calculations.
• Increased Trust: Paying on time avoids disputes and ensures payments are received. A company with fewer errors fosters trust and satisfaction among its employees.
• Scalability: As your business grows, Odoo’s flexible commissions module can adapt to handle larger teams and more complex compensation structures.

Conclusion

Odoo 18's new commission feature is a game-changer for businesses looking to drive sales growth and reward their teams effectively. It combines flexibility, automation, and real-time insights to empower your organization to design and implement commission plans that deliver results. If you're ready to take your sales strategy to the next level, explore what Odoo 18 has to offer. Stay ahead of the competition and unlock your sales team’s full potential with Odoo 18. Contact us today to learn more or schedule a demo!