Oracle Sales Compensation: An Adequate Solution for Sales Force Management

1
Oracle Sales Compensation An Adequate Solution
for Sales Force Management?

• Joseph P. Daly
• DARC Corporation

2
Topics for Discussion

• Introduction
• The Practical Concerns of Sales Compensation
• Overview of OSC Releases
• Analysis
• Conclusion

3
The Problem with Spreadsheets

• Maintenance nightmares
• Lack of flexibility
• High margin of error
• Poor audit trails
• Do not reflect a sales agreement

4
Why invest in an ERP Solution?

• FLEXIBILITY
• Easier maintenance
• Automatic calculations and credit sharing
• Strong reporting capabilities
• Online access to commission figures
• Lower margin of error

5
Oracle Sales Compensation Release Schedule

• OSC 10.7- 1997
• OSC 11- 1998
• OSC 3i- 1999
• OSC 11i- 2000

6
OSC 10.7

• Component-based approach
• Revenue class concept
• Plan elements
• Roll-ups and hierarchies
• Integration only with AR
• Commissions paid at invoice and payment only

7
OSC 11

• Essentially the same as 10.7
• Some cosmetic changes
• New report and request options
• Margin-based plan elements
• Discount-based plan elements

8
OSC 3i

• Mass adjustments
• Split credits within OSC
• Intelligent Calculation feature
• Integration with Oracle Order Entry
• Compensation Plan APIs

9
OSC 11i

• Graphical interface for hierarchies and
  compensation plans
• Complex classification rules
• User-defined calculation formulae
• New payment processing options
• Integration with more applications

10
Creating and Maintaining Plans

• All releases present flexible solutions
• Revenue classes and plan elements allow
  significant customizations
• Classification rules can be problematic
• 10.7 and 11- no mass assignments
• 3i and 11i- mass assignments
• All four offer customization at rep level

11
Incentives and Adjustments

• Plan elements and revenue classes can create
  special incentive plans and options
• Uplift factors increase commission payment and/or
  inflate amount of transaction
• Discount element can de-incent sales
• Adjustments adequate in 10.7 and 11
• Mass adjustments in 3i big improvement

12
Tracking and Reporting

• Salesperson subledger
• Seeded reports
• Quota achievement and revenue attainment easily
  tracked
• Transaction-level reporting available
• All releases allow user to track and evaluate
  both plans and sales reps

13
Commission Processing

• Standardized collection processes
• Adjustment functionalities vary by release
• Intelligent calculation in 3i
• Customizable calculations in 11i
• Hierarchy allows streamlined processing for
  shared credit transactions

14
Payment Processing

• Payrun document creation
• Individual worksheets for sales reps
• No integration with AP or Payroll through 3i
• API table allows for customization
• 11i looking for more integration

15
Conclusion

• All releases offer critical flexibility in
  defining what is sold, and how it is compensated
• Plan-oriented releases v. Processing-oriented
  releases
• Streamlined commission processing and mass
  adjustments