How to Handle Salesperson Commission in Odoo 18 Sales

In Odoo 18 Sales, the sales team and sales representatives are essential in overseeing client interactions from lead generation to contract finalization, ensuring a smooth sales process. They excel in managing client needs, conducting follow-ups, and personalizing the customer journey. Their contributions are vital for achieving sales targets, tracking performance metrics, and leveraging accurate data for informed strategic choices. By aligning their efforts, they significantly enhance the company's overall success and revenue. To further incentivize and manage the sales force, Odoo 18 Sales has introduced a new Sales Commission plan.

In Odoo 18 Sales, the administration of salesperson commissions can be optimized through the establishment of compensation frameworks that are aligned with sales performance metrics or specific standards, such as sales targets or product sales. By leveraging custom workflows within the sales or invoicing modules, organizations can implement automated commission calculations. Additionally, the system is equipped to generate comprehensive reports, facilitating effective monitoring and management of commissions to ensure accuracy and transparency in payout processes.

Sales commissions can be configured from the Odoo 18 sales module. So the user needs to change the configuration. First, enable the Commissions field.

Configuration > Settings > Commissions

The commissions feature is here to help you keep track of sales goals and reward your amazing sales teams! Once you've made your updates, don't forget to save them. You'll find a new menu called 'Commissions' popping up right next to the 'Products menu!'

The Commissions menu includes My Commissions, Commissions, Commission Plans, and Adjustments, making it easy for you to keep track of everything!

To create a new Commissions Plan, click on ‘Commission Plans’. You will see a list of previously created commission plans, which includes information like the plan name, type, frequency, company name, start and end dates, and their current status.

Fill in the name of the commission plan in the specified field. The plan may be executed based on either Target or Achievement, applicable to a salesperson or a sales team. Subsequently, set the On Target Commission (OTC), followed by the start and end dates, and determine the payment frequency for the commission.

On the Commission tab, users can define the levels of commission. Specify the target completion percentage and the commission amount. To add another commission level, just click the Add a 'New commission' level button.

The On-Time Target is set at $1000, incorporating two defined commission tiers. The first tier provides a commission of $500 upon the attainment of 50% of the target. Upon achieving full target completion at 100%, the salesperson is eligible for a commission of $1000. For a visual representation of this commission structure, please refer to the graph located on the right side.

The next section is Targets, which will be shown based on the chosen Payment Frequency. With the frequency set to quarterly, the corresponding quarterly periods are listed. This section outlines the start and end dates along with the target amount for each quarter.

The next Tab is the Achievement tab, which provides users with the capability to set the achievement percentage for their salesforce. A commission of 5% will be applied to each invoiced amount, thereby quantifying the salesperson's performance and success.

In the Salespeople section, users can assign particular sales representatives to receive the advantages of this plan. The Add multiple salesperson feature facilitates the inclusion of additional sales personnel, ensuring comprehensive coverage under this initiative.

After implementing the necessary modifications, the user may proceed to click the Approve button located at the top of the form. This action will transition the status of the commission plan to Approved, as illustrated below. A dedicated tab titled Commissions is available, which provides a comprehensive overview of all commissions that have been created. By selecting this tab, the user can access a detailed list of all existing commissions.

We have successfully set up the new commission plan. Now, let's take a look at how the commission for a salesperson is determined. To do this, we need to create a new sale order. Start by clicking on the Orders menu and selecting Quotations. You will see a list of existing quotations. To create a new one, simply click on the New button.

The selected customer for this order is Azure Interior. Important details such as the customer's name, expiration date, and payment terms are included. It is evident from the order that the product chosen is the Apple Pie.

Initially, please Confirm the sales order. Subsequently, select the Delivery option to facilitate the completion of the delivery process. Finally, ensure that the delivery order is validated.

To proceed, you need to generate an Invoice. Once the invoice is confirmed, you can post the entries. After that, click the Pay button to finalize the payment. The total amount on the invoice is $400, as illustrated in the image below.

Let's create another sales order. This time, the customer we have chosen is Deco Addict. The details of the sales order are outlined here. The customer has requested one unit of the Customized Cabinet (Metric). The order line displays the quantities and amounts involved.

Finish the delivery and press the Create Invoice button to issue a new invoice. After it has been created, confirm and submit the entries. Finally, click on the Pay button to complete the payment.

Now here the salesperson completed two sales. The first invoiced amount is 400 dollars and the second invoiced amount is 1000 dollars. So the total amount is 1400 dollars. To check the salesperson commission click on the My Commission menu placed Commission.

Here the target amount for this quarter is set as 2000 dollars inside the commission plans. So here the target amount shows there. The total invoiced amount is 1600 dollars. The 10% of the total invoiced amount is $160, which is shown under Achieved. So the ratio between the Target Amount and the Achieved amount is shown as the Achieved Rate, which means that 8% of the target amount is the achieved amount. 

Click on the Commission menu and choose Adjustments. It's used to add some adjustments to the commission. The salesperson's name, date, type, and amount of invoices are shown there. If the user needs to add some adjustments click on the New button.

Here an amount of $5000 was added as an adjustment. The salesperson is the same Mitchell Admin. The date is added and the type chosen is Amount Invoiced. 

Commissions can be shown under the commission menu. According to the adjustment, the Achieved amount increased. Here the Achieve Rate also changed, 33% of $5000 is the commission of $1650.

For salespeople, Odoo 18 provides a simplified commission management system that allows for automated tracking and calculation based on configurable rules.