NetSuite Incentive Compensation

This solution is easy to use and addresses the challenges of managing complex multi-tiered commission plans. NetSuite Incentive Management provides functionality to help businesses manage and calculate sales compensation based on criteria such as quota, quantity sold, service item, and product profitability. Additionally, with NetSuite, sales teams gain visibility into their incentives and progress through automated commission reporting. This ensures that sales reps understand their incentives as they work to meet specific benchmarks and remain aligned with business goals throughout the process.

Want more information on how NetSuite Incentive Compensation can help you? Continue reading, or download the PDF data sheet on NetSuite Incentive Compensation to learn more.

With NetSuite Incentive Management, companies can manage programs in a centralized and collaborative manner. Executives, sales, and finance managers can view and adjust compensation rules within commission schedules, configuring these with different performance measures. With NetSuite Incentive Compensation, companies can define quotas per period (monthly, quarterly, annually, year-to-date) and categorize them by total sales, product or service, subsidiary, department, or even location. Companies can also calculate commissions based on custom criteria, including custom measurements for all quota- and sales-based commission plans. With NetSuite Incentive Management, several commission schedules can be combined into comprehensive commission plans with various rules and enforce effective dates, providing flexibility in how your company structures and deploys commission.

NetSuite offers sophisticated rule management functionality, enabling managers to structure commissions and payments optimally for their teams. Commissions can be calculated linearly, marginally, based on a target factor, or without a scale.

Easily calculate indirect commissions due to managers and executives from sales at the field level. Set up a schedule for sales managers and executives. When field sales personnel on the manager's team book qualifying orders, the amount will be reflected in the manager's or other qualified individuals' compensation. Set up split commissions when needed. With Team Selling capabilities, you can split commissions between multiple parties on the same sales transaction. Specify the appropriate contribution percentages for each sales individual involved in the transaction, and the commission schedules will automatically use these percentages to determine the payout.

NetSuite Incentive Management also enables businesses to calculate and report on partner commissions, allowing companies to pay employees and partners on the same sales transaction. Businesses can calculate rules for partner commissions using the same parameters available for employees, such as commissions based on sales, quantities, and profitability. Partner commissions can also be computed using custom criteria for additional flexibility.

NetSuite's Incentive Management provides numerous ways to process and approve commission payments. Commission calculations can be triggered when a customer is invoiced or when the invoice is paid. In NetSuite, an approved sales order starts the commission calculation. Commission amounts can go through sales manager approval and accounting approval, or simply sales manager approval. Manual overrides are available during the commission approval process. Once compensation has been approved, companies can make payments in NetSuite via accounts payable or through automated payroll integration. Overpayments and underpayments resulting from invoice changes are addressed by providing a credit or debit adjustment for the next pay cycle.

NetSuite's Incentive Compensation module provides companies with complete reporting and analytics, enabling sales, operations, and finance to monitor sales trends, quotas, performance, and attainment distributions. Both summary and detailed compensation breakdowns are available through role-based, real-time dashboards and reporting. This functionality enables salespeople to forecast their earnings, adjust their efforts, and view detailed commission reports within their sales dashboard. You can even allow partners to view their sales commissions through an online Partner Center.