SALES AND COMMISSION PLANS WITH ODOO
Sales are always incomplete without commission, it’s an integral operation that boosts your revenue, marketing your visibility and approaches a chance for an anonymous to earn.
Every entity depends on sales, just think you have a large amount of productive inventory and there are customers outside inquiring about your products. Now these customers can buy the products in various ways, either they can buy directly, or they might be referred by some of your clients, or they can buy through your sales representative.
Now if they buy through the reference, these referrals are awarded with some “commission” after the whole transaction is completed and this way it can improve your sales and visibility and maintain the inventory regularly to enlarge your turnover.
But now if this operation is managed manually and your business has taken a step to advance, like there are many sales representatives and plenty of refers visiting you and earning based on commission. This will be difficult and time-consuming managing in excel or in writing, often you are mistaken with your cash flows.
After detonating these problems, many platforms like accounting software products & ERP’s have developed these inbuilt features specializing in sales and commission that can hassle-free your manual and head aching tasks by just calculating and storing records in switch hands.
One of the ERP is Odoo, which provides a functionality to add sales commission partner with all the invoices or tickets. He is involved, manages the payment transaction, payment terms, payment medium, and create reports accordingly to analyze from period to period.
Let’s see how sales and commission managed by Odoo
In your Odoo database for activating commission plans, you first need to install the module for “Resellers Commissions For Subscription” which configures the commissions for your sales team based on the percentage and the product.
After installation, make sure you are using a CRM application, because under the configuration of CRM →Configuration → Reseller →Commission Plans you can set up your commission plans according to your percentages and sales team.
When you open up the commission plans from the CRM settings, you will be able to view a form where you can name your commission plan. You can also add up a purchase product for the journal entry, add up the company (if you are using the multi companies feature)
After selecting the product, company and name, choose to add up the product category and the products on which you need to add up the commission while making their sale order. Then assign the rate of the commission percentage, which will be computed on the sales price.
You can also select up your created sale order template on the commission rule lines. Select the choice of your payment price list if your sales rep is from the different localization which adapts the different currency or accepts the payment with different rules.
There is a boolean for the capped amount if you enable it, you can set up the maximum amount of commission applied for the particular product.
Also, with the single rule you can add multiple products, product categories and sale order templates by just adding the lines.
Note : Make sure that your selected purchase product is configured to the particular expense account or any of your write-off accounts. Like the image below.
Once the rules are set, it’s the turn to set up the partner level plan in which you will assign your team or group of partners that will be applicable to the particular commission plans, according to the rules.
Similar to the commission plan, you can hop in to the partner level by CRM →Configuration →Resellers → Partner level
When you click up the partner level, the form view is displayed to fill up the necessary fields like name of the level, level weight (sequence or hierarchy), whether it is supposed to keep active. And add up the commission plan applied to that level or group.
After setting up the level and the commission plans, you need to go to your contacts of your sales rep or the commission members and assign them the level and the commission plan under the partner assignment. So next time if the product is sold automatically the partner is selected and commission is applied.
That’s all done for setting up the commission rules to your products and contacts,
Now consider testing the real case and see how this will work
Create a sales order you can see two extra fields where you can add referrer and add commission plan you want to apply and select the product which you have added a commission rule.
You can see the referrer commission added at the right bottom below the total.
And once the Invoice is created from the sales order, and market as paid with any amount due and reconciled
You can see the PO will be automatically created from the referenced Invoice to maintain the accounting write-off for the commission paid under selected Journal entry of Expense and hence finishing up the complete commission process.
Similar way, the bill for the payment is generated from the commission under the expense account.
