There are a few instances in NetSuite when you may need to calculate contribution percentages. The typical examples are Sales Commissions for a Sales team, or attributing a transaction to a Partner. The one rule that contribution percentage in NetSuite has, is the total percentage must total to 100%. This rule makes sense, but poses some unique issues in certain circumstances.
One example of an issue this rules poses, is a sales team that sells as a team and shares in the full value of a transaction. A sales team may be made up of several people that work within a region. They base commissions on ALL sales in the region, and the quota is a team quota. For example, Sales Team East share commissions on all sales in the East region and have a team quota of $100,000.
Note: NetSuite Team Quota does not mean all members of a team share the quota, but is used to measure the sales made by the manager and all of his or her subordinates.
The result is each sales rep is only given a percentage of the total value of the transaction. A sale of $1,000 would only count for $500 towards the sales team’s quota. Now one might suggest to divide the quota by number of sales reps, and leave the contribution % as 100%/# Sales Reps. This could work in simple examples, but is not recommended. There is another alternative that allows you keep the quota in NetSuite the same as the quota the sales team uses.
The solution is creating a sales rep to receive a negative contribution percentage in order to keep the total at 100% to avoid the error below.
The cancelling employee, receiving the negative contribution percentage, allows for the sales reps to receive the full value of the transaction against their quota, and allows for quotas to be shared among a team.
The cancelling employee will need to be set-up just like a normal sales rep but will receive a negative contribution % on transactions. This includes establishing a schedule and quota for the cancelling employee. One way to ensure no commissions are calculated for the cancelling employee is to establish an unattainable quota and giving .0001% once they reach 300% of the quota. As illustrated below.
1. First create the cancellation schedule, and set the commission percentage at 0% for the first column. Then set the .01% commission rate to be achieved at 300% of quota.
2. Create the quota for the cancellation employee
This solution can also be used whenever there is a contribution percentage used. If you have any questions, feel free to email me at [email protected]
By: Matthew Balas – Virginia NetSuite Solution Provider