How to Handle Salesperson Commission in Odoo 18 Sales

Arsalan Yasin

Strategize your business with among the #1 Odoo Techno Functional Consultant || Certified in Odoo v10 - v17 || Leading

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Salespeople and sales teams play a pivotal role in managing client interactions in Odoo 18 Sales. They ensure a seamless sales cycle by effectively addressing client needs, conducting timely follow-ups, and personalizing the customer experience. Their responsibilities extend to maintaining quotas, monitoring sales performance, and leveraging accurate data to support strategic decision-making. By coordinating these activities, they contribute significantly to the firm’s success and revenue growth.

To further enhance the efficiency and motivation of sales teams, Odoo 18 Sales has introduced a Sales Commission Plan. This feature helps manage and incentivize sales teams and salespeople through well-defined compensation structures based on performance and specific criteria.

Introducing the Sales Commission Plan in Odoo 18

The new Sales Commission Plan in Odoo 18 Sales is designed to reward sales performance effectively. It allows businesses to configure commission rules tailored to their objectives, such as achieving specific sales goals or selling particular products.

Key Features:

  1. Customizable Compensation Rules Users can define commission rules based on sales performance metrics or specific business requirements, like sold goods or achieved targets.
  2. Automated Commission Calculations Odoo 18 enables the creation of custom workflows within the Sales or Invoicing modules to automate commission calculations, saving time and reducing errors.
  3. Detailed Reporting Comprehensive reports generated by the system help monitor and control commissions, ensuring accurate and transparent payouts.

Configuring Sales Commissions in Odoo 18

Sales commissions can be configured directly from the Odoo 18 Sales module by making the necessary adjustments to the settings.

Steps to Enable and Configure Commissions:

  1. Navigate to the Sales Module in Odoo 18.
  2. Go to the Configuration Settings within the module.
  3. Enable the Commissions Field to start setting up rules and workflows for commission tracking and payout.

: Configuration > Settings > Commissions

The commissions help to manage the sales and sales teams' targets and commissions. Then save the new configurations. A new menu named Commissions will appear near the Products menu.

The Commissions menu contains My Commissions, Commissions, Commissions Plans, and Adjustments.

Let's configure a new Commissions Plan. For that click on the ‘Commission Plans’. Already created commission plans are shown in the list view, the plan name, type, periodicity, company name, start and end date, and state are shown in the list.

Add the name of the commission plan in the field.  Then the plan can be performed on the basis of either Target or Achievement which can be applied either to a salesperson or sales team. Then set the On Target Commission (OTC), after that mention the start and end dates and then payment frequency for commission.

Under the Commission tab, users can configure the commission levels. Add the target completion in percentage, and commission amount. It's possible to add a new commission level by clicking on the Add a new commission level button.

The On-Time Target is set as 5000 dollars. Here two commission levels are configured. The first commission level is 50% of the target completed then the salesperson gets a $2500 commission. After completion of 100% of the target completion, the salesperson gets a commission of 5000 dollars. The corresponding graph can be viewed on the right side.

The next tab is Targets, which will appear on the basis of the chosen Payment Frequency. Here the frequency is set as quarterly, that's why quarter periods appear there. The period, from and to dates and the target amount of each quarter are shown there.

Next is the Achievement tab, from which the user can decide the achievement percentage of the salesperson. From each invoiced amount 10% will be taken as salespersons achievement.

Then inside the tab name as Salesperson, users can specify the users and those salespeople will get the benefits of this particular plan. Using the Add multiple salesperson users can add more salespersons to this plan.

Once the necessary changes are made, the user can click the Approve button located at the top of the form. This action will update the commission plan status to Approved, as shown below.

A smart tab labeled Commissions will then be visible. This tab provides an overview of all the commissions that have been created. By selecting the Commissions smart tab, the user can view a detailed list of all associated commissions.

Now the configuration of a new commission plan is completed. So let's check how the commission for a salesperson is calculated. So move to create a new sale order. For that click on the Orders menu and choose Quotations. A list of created quotations is listed there. So to add a new one click on the New button.

Here the chosen customer is Deco Addict. The details like customer name, expiration date, and payment terms are shown there. From the order, it's clear that the chosen product is Acoustic Bloc Screen.

Confirm the sale order first. Then choose the Delivery to complete the delivery process. Then validate the delivery order.

The next step is to create an invoice. Confirm the invoice to post the entries. Then click on the Pay button to complete the payment. The total invoiced amount is  $600 as shown below image.

Then let's make another sale order. This time the chosen customer is Azure Interior. The details of the sales order are shown there. The customer chose one quantity of Customized Cabinet (Metric). The quantities and amounts are shown inside the order line.

Complete the delivery and click on the Create Invoice button to add a new invoice. After creation, confirm and post the entries. Then click on the Pay button to pay the amount.

Now here the salesperson completed two sales. The first invoiced amount is 600 dollars and the second invoiced amount is 1000 dollars. So the total amount is 1600 dollars. To check the salesperson commission click on the My Commission menu placed Commission.

In this example, the target amount for the quarter is set at $2,000 within the commission plan. The Target Amount is displayed accordingly. The total invoiced amount is $1,600, and 10% of this amount, equating to $160, is shown under Achieved.

The ratio between the Target Amount and the Achieved Amount is displayed as the Achieved Rate. This indicates that 8% of the target amount has been achieved so far.

To make adjustments to the commission, follow these steps:

  1. Click on the Commission menu.
  2. Select Adjustments. This section allows users to make modifications to the commission details.

The Adjustments menu displays information such as the salesperson’s name, date, type, and invoice amounts. To add new adjustments, click the New button and input the required details.

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.

Odoo 18 offers a streamlined commission management system for salespeople, enabling automated tracking and calculation based on customizable rules. This simplifies incentive management, ensures accuracy, and effectively motivates the sales team.