Implementing Sales Commission Systems in a Retail environment gives rise to a unique set of challenges that are not always found in other industries. Understanding these challenges upfront allows the project team the ability to select a suitable system to handle these needs. Many systems may have difficulty in handling these challenges fully. Identifying these issues up front helps to prevent the project team from getting bogged down in the later stages of the project, as the difficulties related to these challenges start bubbling up.
Hiring large number of temporary employees at peak times, transferring employees frequently to stores where the need is greatest. Retail jobs are typically stepping stones for most staff on their way to more desired careers. These needs require the system to be able to process a high volume of personnel change actions, automatically from source systems. The systems typically should be able to identify the proper compensation plans, goals and results for employees based on pre-defined rules and should not require users to manually manage this process. Goals, performance and payout for staff should be prortable based on presence in the store.
Calculate Accurately with Flexible Rules
- Credit sales by location/store, service, technician
- Pay different commission rate based on type of service
- Pay different commission rate based on billing quantity
- Pay commissions on order, invoices or payments
- Track gross profit for an entire job across periods.
- Calculate commission on invoicing but pay commissions on payments
- Pay for individual, team and location performance
- Split commissions between sales reps
- Pay commission on revenue, quantity and gross margin
- Pay commission as percent of sale or flat amount
- Vary commission rates by tiers of attainment
- Pay SPIFFs by product and date range
- Pay override to managers by reporting relationship or territory
- Handle reserves and claw-backs
- Accommodate payee transfer between locations
- Pay commissions weekly, bi-weekly, twice-monthly or monthly
- Prorate commissions to handle employee turnover and transfers
- Integrate with systems such as MS Dynamics, Salesforce.com QuickBooks, and other systems.
QCommission is designed to integrate with QuickBooks®, Salesforce.com, Sage Peachtree, MS Dynamics GP, MS Dynamics Axapta and many others. QCommission can also accept Excel, fixed file and delimited format files. QCommission can also process some PDF format files. QCommission can also operate stand-alone.
- Import data from accounting system including Invoices, Expenses, Payees, Customers and Products.
- Import from Carrier data from Excel, PDF and fixed or text-delimited files.
- Restrict Transaction import using a date range.
- Export Commissions payouts for accounts payable and payroll.
- Export data to Excel, and fixed or text-delimited file formats.
- Eliminate shipping, tax charges from calculations.
QCommission stores all data entered and all payout calculations.
- Produce detailed commission statements by payee.
- Reproduce commission statements for prior periods.
- Report on split credits and uncredited transactions.
- Analyze historical transaction and payment information.
- Email commission statements to payees.
- View commission statements through the web.
SCS Direct Simplifies Sales Commission Process Using QCommission
SCS Direct is “a leader in consumer products that develops best of breed products across the Toy, Baby, Housewares, Home Improvement and Outdoor Living categories.” Having been in the business for 19 years, they pride themselves in bringing unique products to their customers around the world.
Some of their brands include Cucina Pro, Kuissential, Imperia, Itzbeen, Bentology, Big Buckets, Sculpt Pro, and Planet Fuel to name a few.
SCS Direct used to heavily rely on Excel for everything business related, and that included their sales commission processing. Using Excel, it took them 5-7 business days to process their sales commissions every pay period. Sadly, the manual process was extremely time consuming and highly error prone.
They wanted to be able to spend their time analyzing reports rather than creating reports. After researching and looking over several software’s compatibility with QuickBooks, they analyzed the cost/benefit ratio of each product and decided that QCommission was their best fit.
After SCS Direct submitted a Demo Inquiry for QCommission, the QCommission team met with Darren Miglas, Financial Controller for SCS Direct, and all the requirements needed for building a custom solution was discussed. The QCommission team exerted all their effort to ensure that the sales compensation plans and the entire customization were setup properly and to SCS Direct’s specifications.
The commission calculations are derived based on various factors such as By Payee, By Payee - Product, By Payee Exception, By Customer etc. QCommission was able to easily handle the complexity since it is designed to handle complex sales compensation plans and bigger transactions.
SCS Direct has been a satisfied QCommission customer for almost a year now.
Pure & Gentle Decides to Upgrade to QCommission
Pure & Gentle has been in the business of providing people from all over the world pure and gentle soaps for over 20 years. All of their products are non-toxic, hypoallergenic, and verified cruelty free. They only use plant-based ingredients and dye-free formulas.
They are committed to providing their customers only the cleanest of products and it reflects in their commitment to the environment as well. Pure & Gentle is registered and verified as a Climate Leader by the United States EPA and they are also the recipient of the Champion Safer Detergent Stewardship Initiative award – the highest award given for environmental stewardship by the US EPA.
Pure Gentle even employs carbon neutral shipping so you can receive your orders in an environmentally friendly way.
Some of their products include soaps and shampoos, home cleaning products, anti-allergy and sensitive skin products, baby care, and pet products.
Pure and Gentle was using a third-party application before. However, the commission report that they ran through the application took 5 hours to run each time.
Pure and Gentle’s sales compensation plan ranked medium in terms of complexity. Because of the sheer volume of transactions that they needed to run every pay period, they decided to switch to Qcommission.
The QCommission team met with Candice Parscale and discussed everything that needed to be considered in the development of a tailored solution for Pure and Gentle.
Because Pure and Gentle’s sales commission calculations are medium complex, the Qcommission team was able to get QCommission up and running for them right away. The QCommission team’s focus was to help make Candice’s bi-weekly calculation of sales commissions easier to manage so that she’ll spend less time in running the sales commission reports.
After implementing Qcommission the Quickbooks import time was reduced considerably because the non-commissionable items and zero-dollar value invoices, which were not considered for commission calculations, were ignored during Quickbooks import using the functionality available within the QCommission.
The commission calculations are derived based on various factors such as By Payee, By Product, By Customer etc. QCommission was able to handle the complexity since it is designed to handle complex sales compensation plans and bigger transactions.
SME Inc. Simplifies Commission Process with QCommission
The ProblemFor years, SME, Inc. USA relied heavily on QuickBooks Desktop to track their sales and their sales people’s sales commissions. Unfortunately, this meant that their time was being inefficiently used.
They experienced difficulty in pulling adequate reports from QuickBooks to display paid sales data. The reports that they were able to generate took hours to complete because they had to remove duplicated lines of data from Custom Fields and calculate commissions – and still, the data they were able to get were still not reliable or consistently accurate.
QuickBooks also had limited options for structuring commissions for performance metrics, something that SME, Inc. wanted to implement.
The ProjectAfter browsing through various sales commission solutions, QCommission piqued their interest because of the positive reviews that they read online.
After a needs analysis call and a demo, they realized that QCommission was just the solution they needed, because it already integrates with QuickBooks Desktop.
When asked about their team’s experience while setting up QCommission, this is what Jason Earp, SME, Inc. USA’s Business Development Administrator had to say, “QCommission’s Team has been excellent. Although there were a few unexpected delays and issues throughout the entire process, they were very responsive and effective at ultimately resolving any complications.”
As of this writing, SME, Inc. USA has been a satisfied QCommission customer for 1.5 years.
QuoteQCommission has successfully accomplished our goal of extracting sales data from QuickBooks and calculating commission payouts on metrics that we were targeting. The team was able to understand our vision and design a program based on our requests.
Implementation was longer than anticipated, and there have been issues along the way, but nothing that we consider excessive considering the cirumstances. The team has always remained understanding, responsive, and effective in developing a product that satisfies our needs.
The program itself lacks in being completely user friendly. However, it is not difficult to learn the system after a few rounds of processing. I would like to see the product be easier to customize reports to be able to display the data according to personal preference without having to rely on the experts. However, the default reports are adequate in providing the information needed.
Overall, we are satisfied with QCommission since we are able to implement a dynamic commission program that we have always wanted, but have always been limited by QuickBooks's capabilities.
Now we can calculate more consistent, accurate, and relevant commissions in a fraction of the time. “
- Jason Earp, Business Development Administrator, SME Inc., USA