Software Industry Sales Commission

Overview

QCommission enables you to quickly calculate commission, verify results and distribute this information to your inside reps, outside reps and other staff. You can present the commission information in such a way that the sales people clearly understand what they are being paid and why they are being paid at a very detailed level. Excel and manual calculations can introduce a lot of errors into your calculations and cause your sales people to lose trust in you. QCommission can help avoid that by calculating all commissions systematically and reliably.

Software firms' sales revenue is typically license fees, maintenance contracts and professional services. Occasionally one-time license fees can be substituted by periodic subscription fees on a contracted basis. Sales staff may include direct sales reps, account executives, sales support engineers and managers. Occasionally, external resellers and referral partners may also be involved.

Typical commission plans for these payees may include:

  • credit sales by customer, territory or by deal
  • pay different rates for different products and services
  • Pay tiered rates based on quota attainment
  • Pay declining commissions rates for contract years
  • Royalty payments to third party products included in sales
Calculate Accurately with Flexible Rules
QCommission provides a lot of flexibility to set up commission plans that are unique to your company and your payees.
  • Pay commission by product or service.
  • Calculate commissions based sales revenue or gross profit.
  • Calculate gross profit by comparing invoice amounts to item cost, or purchase order amount.
  • Pay commissions at time of invoicing, at time of payment or when job is complete.
  • Pay different commission rates for sales reps, account executives sales support, and referral partners.
  • Pay commissions as a portion of results, flat amounts, tier rate with thresholds, etc.
  • Associate Customer to salespeople and pay commissions.
  • Calculate incentives as often as you want.
  • Handle cancellations and adjustments.
  • Handle negative payouts.
  • Split Sales commissions between multiple payees.
  • Pay overrides to sales managers.
  • Pay draws or guaranteed payouts.

Import/ Export

QCommission is integrated 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 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

Reporting

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.

Case Studies

QCommission satisfies MDP Supply’s sales commission calculation needs.

Image
Customer Profile

Emporos is a leading service provider of pharmacy point of sale (POS) solutions. Their MerchantSoft system addresses the unique needs of pharmacies, enabling pharmacists to quickly verify prescriptions and current customer medications.

The Challenge

At the time of implementation, the Company had recently rolled out their commission plan and wished to implement an automated sales commission tool so they could avoid the complexity of calculating commissions manually.

The Solution

The Company looked at various options that interfaced with QuickBooks Enterprise. Ultimately, QCommission was selected because of its full functionality and ability to interface with QuickBooks Enterprise.

Customer Testimonials
“Our Company uses QCommission with QuickBooks Enterprise to calculate and report sales commission for our sales and account management team. This versatile web-based tool has allowed us to implement a commission plan that is free of the burdens of a manual process. The QCommission Team worked closely with us to help implement and test the system prior to putting it into active production. This tool integrates well with QuickBooks to allow our Company to accurately calculate and pay commission. We are able to pay and report commissions timely, provide visibility to management and payees through the reporting capabilities and complete the process with substantially less effort. The tool has the ability to manage commission plans that range from the simple to the complex, allowing for changes as a company's needs changes. The QCommission Support Team is responsive and has always helped resolve any issues or address questions. I would strongly recommend this tool for any company seeking to efficiently and effectively manage a commission program. QCommission is a versatile and cost effective web-based system that integrates well with QuickBooks to manage commission plans that range from the simple to the complex”. – Robert Antista, CFO

Creative Strategies Uses QCommission for their Sales Commission Needs

Image
Customer Profile
Creative Strategies US is based in Kentucky and has been a trusted EMAR solutions provider for more than 13 years. Creative Strategies serves businesses throughout the United States. The company developed an electronic medication administration record (EMAR) solution called ACCUflo that helps care providers track how and when they distribute medications to patients in institutional settings. Creative Strategies US, now called Vita-Stat LLC, currently has 41 employees and has expanded its offices to a 20,000 square foot building.

The Problem
Prior to QCommission, Creative Strategies calculated their commissions manually which was time consuming and had a high potential for errors. It took more than 8 hours every month to gather data from QuickBooks (like checks and statements), calculate the commissions, and distribute the reports to their sales team.

The Project
The QCommission implementation team started the project by doing an in-depth discovery meeting with the Creative Strategies team and configured all the necessary sales compensation plans into QCommission to fully automate the commission process. The project had medium complexity and was completed within the estimated budget cost, with accurate calculations and reporting. QCommission imports the data from QuickBooks, calculates 2 different commission plans (Sales Rep Commission and Vendor Commission) with different splits and rates, and provides easy change in commission criteria (such as payout rate or split rate, adding and deleting payees). Creative Strategies also receives responsive customer service if issues arise, as well as timely resolution to their issues.

Quote
QCommission has streamlined our commission process and it now only takes about 30 minutes each month to import the data, calculate the data, and run reports for our sales team. We have had a couple of calls to support and they were responsive in a timely manner and resolved the issues at hand quickly.” – Vickie Sample, Vita-Stat LLC (Formerly Creative Strategies)