Sales Quota Over Assignment Management

Sales quotas are a popular but imperfect sales management tool. Each year, sales leadership allocates the company’s annual forecast to the selling resources. The process is loaded with noise, challenge and drama. Logically, it seems that these annual, year-after-year attempts to get quotas right would eventually yield a highly tuned system, celebrated by all. Unfortunately, that is not the case. More than 50 percent of the participating companies reported “correct goal/quota setting” as the No. 1 challenge facing the sales compensation program in the 2007 to 2010 results of the Alexander Group’s annual Sales Compensation Trends Survey. In 2015, that number reached 59 percent. Read below to learn how you can participate in the “2015 Sales Quotas Practices Survey.”


The sales quota program is a performance accountability system. Such systems can create a sometimes tense, charged environment. Because setting quotas is both science and art, it is open to errors and criticisms from all fronts.

Follow these five best practices to improve your sales quota program.

#1: Embrace Sales Quotas. Yes, sales quotas drive performance accountability (and produce noise). More importantly, they offer a broad and robust sales management platform for sales planning conversations and coaching. Sales quota allocation provides an excellent process to judge current sales results and assess future sales opportunities. In many respects, it is one of sales management’s most important planning and management tools. Use quota results to recognize success and identify performance improvement opportunities.

#2: Let Customer Knowledge Drive Allocation Process. Should sales personnel be involved in setting their own quotas? Conventional wisdom encourages seller involvement in the annual quota allocation process. When sales management involves sales personnel in the process, they become more engaged and committed to achieving their sales objectives. Yes, but. There is a wide arc of selling. For example, some sellers have only one account, such as strategic account managers (SAMs). These sellers work year-round with the same buyers at the assigned customer, often working on large complex deals featuring high-revenue opportunities. Of course, we would want the SAMs to be deeply involved in the quota allocation process. Who else knows more about the account—its revenue potential—than the SAM assigned to the account? Meanwhile, an inbound sales associate taking calls driven by marketing campaigns has little personal knowledge of sales potential. It is best to use information about marketing campaigns, their duration, offer and historical impact to help set quotas for telesales associates. Extent of customer knowledge determines the appropriate involvement of sales personnel. The more they know about the accounts, the more involved they are in the process. The less they know about the accounts, the less they participate in suggesting the right quota.

#3: Use Potential to Fine-Tune Quotas. Between the two selling extremes of strategic account managers and telesales associates exists many types of sellers; the most common is the account manager. Account managers have a specific set of accounts, often called “named” accounts. Some of these accounts are very active and well known to the account manager, others less so. We would like our account managers actively involved in the quota allocation process. We want them to understand both their active and inactive accounts. Additionally, sales management can employ strong account-by-account analytics to create predictive potential estimates for accounts. Combining the account manager’s view of next year’s potential with the calculated estimates by sales management offers a dialog opportunity known as the “top-down/bottom-up” quota allocation process where both parties contribute to establishing the annual quota. This methodology trumps quota allocation processes that take last year’s performance and add a flat growth rate.

#4: Make Quotas Active. Quota performance, quota reporting and quota reviews should be in the lifeblood of sales management narrative and operations. Quota performance should be ingrained in the leadership messaging to the sales force. Remind the sales team—and often—of the shared quota commitments. Quota reporting should be available to all, including sales force-wide numbers down to individual performance. They should not be private—let them be transparent. Let them see how other sellers are doing and how they compare. Use quota performance to inform sales coaching and management efforts. Quotas should not reside solely on spreadsheets; make them an active part of the management process.

#5: Manage Crediting, Exceptions and Mid-Year Changes. Walk the quota ramparts to ensure the integrity of the program. Make sure the program does not offer excessive double crediting. Ten percent double crediting or less is a good starting benchmark to assess the extent of double crediting. To calculate double crediting, take compensable revenue less actual revenue divided by actual revenue. Limit mid-year exceptions. Publish definitive and restrictive rules when sales management can provide “quota relief.” Use a quota review board to approve all quota adjustments. Only consider sales force- wide mid-year changes when the company has restated it goals and publish those new goals to the stockholders/owners.

Sales Quota Traps
Here are two common sales quota “traps” that sales leaders can avoid. First, do not attempt to assign quotas for unpredictable, large orders. Such orders can upend a quota system. Pay them on a separate schedule. Second, keep new products out of the annual quota, unless product management has a proven track record hitting launch dates and accurately estimating volume. Otherwise, leave them out of the quota. Reward them with a SPIFF.

Remarks
Quotas are more often right than wrong; however, the accompanying noise factor disproportionately distracts from the overall confidence of the allocated quotas. In other words, your quotas may not be that bad after all. And, follow the five suggestions: embrace sales quotas; let customer knowledge drive allocation process; use potential to fine-tune quotas; make quotas active; and manage crediting, exceptions and mid-year changes. Of course, avoid the sales quota traps of mega orders and new products.

How to Learn More
The Alexander Group is now conducting the “Sales Quotas Practices Survey.” The survey is open to companies with more than 20 salespeople. Survey closes July 28 and results will be published in August. Here are the key topics in the survey:

Setting the Annual Corporate Goal

  • Forecast Accountability
  • Sales Department Goal Compared to Forecast. Quota Allocation Percent

Governance and Accountability

  • Quota Allocation Method Selection
  • Quota Allocation Administration Level Responsibility. Administration Accountability

Quota Allocation—Assigning the Number

  • Quota Allocation Method
  • Quota Allocation Timing
  • Quota Assignment Reference. Quota Allocation Duration
  • Quota Performance Period and Measurement. Timing of Quota Assignment Notification

Assessment Effectiveness

  • Quota Performance—Achieving/Exceeding
  • Quotas—Actual Performance. Quota Expectations—Primary Sales Job
  • Quota Program Effectiveness. Quota Program Assessment
  • Quota Accuracy
  • Source of Quota Inaccuracy. Available Internal Data
  • External Market Data. Assessing Quota Distribution

Mid-Performance Period Changes

  • Assessment of Mid-Performance Period Quota Changes. Percent Who Got a Mid-Performance Quota Change
  • Mid-Period Quota Change Process. Quota Adjustment Factors

Sales Crediting

  • Sales Crediting Summation. Sales Crediting Timing
  • Global Sales Crediting. Sales Credit Split Effectiveness. How effective are the sales credit split practices (sharing of credit among multiple sellers)?

Documentation and Communication

  • Quota Policy/Practice Documentation. Communication of Quotas

Learn more about the Alexander Group’s sales compensation and sales quotas services.

TAGS: alexander group, compensation, quota setting

Sales Quota Management: Overview

Sales Quota Management provides a comprehensive solution for managing sales quotas to maximize quota attainment and improve overall sales performance. Effective top-down planning with bottom-up assessments ensures that quotas relate to corporate goals. After the sales plan is deployed for the year, sales executives can then monitor and track sales performance by comparing forecasts with actuals and with quotas.

Summary of Features

The key features of Quota Management include the following:

  • Assign territory quotas to territories and resource quotas to people.

  • Create sales goals such as number of sales calls.

  • Review quotas assigned to you by your senior manager and allocate quotas to your salespeople.

  • Compare quota to revenue, pipeline, forecast, and other metrics using business intelligence.

  • Use formulas to calculate territory quotas using measurements of historical data and future potential.

  • Add adjustments to your quota to cushion against attainment risk.

  • Track current quota achievement compared with quota targets.

  • Manage seasonal variations in sales by distributing the revenue quota among several calendar periods using seasonality guidance.

  • Send notification to Incentive Compensation with new and changed individual quota assignments for all sales goals.

  • Use a round trip export, update, import of quotas to add bulk quotas from spreadsheets.

Quota Components

Sales Quota Plan Components: How They Work Together

Quotas are a reflection of sales targets set for an individual in a sales organization. After a corporate goal is established, managers distribute quotas down through the sales territory hierarchy until all territories and their respective owners have quotas. Sales managers can compare quota projections based on historical sales information and metrics with quotas being set. You can use one sales quota plan for the fiscal year.

In this figure, a sales quota plan contains several territories, each assigned a quota. Territory quota formulas compute projected quotas based on historical sales information and metrics such as forecasts and market potential. The projected quotas appear as default territory quota amounts. Distributing quota to your team using spread formulas allocates quota based on the contribution of each of the territories. You also assign quotas to individual resources.

Sales Quota Plan

The administrator can create one or more sales quota plans. Each sales quota plan covers a period of one year. Active territories become part of the new quota plan, and the administrator can add territory proposals to allow the setting of quotas for proposed territories. Sales quota plans are inactive until the administrator activates them.

Territories and the resources assigned to them change frequently. The administrator can synchronize the latest active and proposed territories with a selected quota plan by clicking Synchronize in the Manage Sales Quota Plans page. The administrator should also schedule the Synchronize Quotas process to run daily so that current and future quota plans that are active will use the latest territory hierarchy.

Note: The administrator can designate only one plan to be used for tracking quotas for the year.

Setting the available options for the quota plan is not required. For the sales quota plan options, the administrator selects an adjustment threshold, a territory quota formula, and a seasonality factor group to apply to all or to individual territories. Territory options override sales quota plan options. For example, the territory quota formulas and seasonality factor groups selected for individual territories override those set at the quota plan level.

The administrator can also set a threshold percentage for adjustment amounts that managers often add to quotas.

In this figure, the assigned quota gets split over each month through seasonality factors that raise or lower quota amounts according to seasonal fluctuations.

Territory Proposals

You can associate territory proposals to your sales quota plan. When sales administrators or sales managers create new proposed territories, such as for a territory realignment, they can enable the setting of quotas for the proposed territories by selecting Eligible for Quota. If you then associate the proposals to your quota plan, you see the proposed territories within the current active territory hierarchy, and salespeople will be able to assign quotas to the proposed territories.

Sales Goals: Explained

A sales goal determines how quota is measured and defines what you want to measure. You set sales goal quotas for a resource, not for a territory. Commonly used sales quotas are simply salesperson targets for revenue achievement in their respective territories. Such sales quotas are modeled as Sales Revenue Goals. Allocating a quota for a sales revenue goal is required, and optionally quotas can be allocated for additional sales goals. Create additional sales goals, such as number of units sold, if you want to assign other quotas to your salespeople.

This figure shows the components of a sales goal. A sales goal supports a particular objective. You can use any unit of measure for your sales goal and specify what to measure, for example, number of units sold. The provided unit of measure choices are amount and quantity, but you can also define your own unit of measure. Each sales goal contains only one measure. You can also focus the sales goal on one or more product groups.

The unit of measure can't be changed after the administrator creates the sales goal. The provided Sales Revenue Goal has a unique value for Goal Number of GOAL_1000. While quotas can be allocated to sales goals which have one or more associated product groups, there are no roll up reports available to compare these quotas against actual sales.

Note: Do not make changes to the sales goal object using Application Composer.

Multiple Quotas for One Resource

You can create multiple sales goals and assign multiple quotas to one or more sales goals for a resource.

This figure shows multiple quotas assigned to a salesperson within the current active quota plan year. The salesperson owns a territory and therefore has a Revenue Goal quota plus the two quotas manually assigned by the salesperson's manager.

A resource can have only one quota per sales goal for the year. You can assign new quotas only for active sales goals. Inactivating a sales goal doesn't affect existing quotas for that sales goal. When you submit notifications to compensation, quotas for all sales goals for the resource are included in the notification.

Territory Quota Formulas: Explained

Territory quota formulas calculate territory quota based on historical sales information and metrics such as forecasts and market potential. The calculated quotas appear as default territory quota amounts in the sales quota plan.

The formulas execute a Multidimensional Expressions (MDX) query on the territories Oracle Essbase cube.

Administrators can change parameters for formulas and set each formula to active or inactive.

Predefined Formulas

Following are explanations for a few of the predefined territory quota formulas.

  • Scale a measure from a past period by a percentage

    Total the amounts for a selected measure for the past selected year. Calculate the stated percentage of the total and add it to the total.

    For example, 110 percent of closed bookings for fiscal year 2014.

  • Percentage change in a measure value over 2 consecutive periods

    Subtract the total amounts for a selected measure for one year from the total amounts for the subsequent year. Divide the difference by the total of the first year to determine the percentage of change. Calculate the percentage of the total value of the second year and add the result to the year's total.

    For example, closed bookings for 2014 minus closed bookings for 2013 divided by 2013 total gives the rate of change as 8 percent. Calculated quotas are 108 percent of the 2014 closed bookings.

  • Percentage change in a measure value over 2 named time periods (current and past)

    Subtract the total amounts for a selected measure for a selected year from the total amounts for the current year. Divide the difference by the total of the earlier year to determine the percentage of change. Calculate the percentage of the total value of the current year and add the result to the year's total.

    For example, closed bookings for 2015 minus closed bookings for 2011 divided by 2011 total gives the rate of change as 7 percent. Calculated quotas are 107 percent of the 2011 closed bookings.

Creating Formulas

Use the Essbase MDX Script Editor to create your own territory quota formulas. When you define a formula that includes a metric, use a parameter for the metric name, rather than defining the metric name as part of the formula expression.

For more information about MDX functions, see Oracle Essbase Technical Reference.

For more information about MDX queries, see Oracle Essbase Database Administrator's Guide.

What's a spread formula?

A spread formula calculates the distribution of an amount among selected child territories. For example, a spread formula takes the variance between the parent territory quota and the sum of the quotas for the child territories, and spreads it to the child territories.

The formula calculates the ratios to use for the child territories through the use of the metric defined for the selected spread formula. The formula examines each territory contribution of the metric value for a period, and compares it with the total value of the same metric for all the territories combined, to determine the percentage to apply to each territory. When a spread formula has no metric selected, then it distributes the amount evenly across the child territories.

Quota Administration

Managing Sales Quota Plans: Worked Example

This example shows how to create a new sales quota plan for the coming year.

You are the sales administrator and it is a month before the start of the fiscal year. You start the sales quota planning process by creating a sales quota plan for the year.

  1. Review the provided territory quota formulas.

  2. Create a new spread formula that sales managers can use to spread a quota amount among child territories.

  3. Create a seasonality factor group that describes how to split quota over quarters and months. For example, you can split your annual quota to be achieved 10% in Q1, 20% in Q2, 30% in Q3 and 40% in Q4.

  4. Create a sales quota plan. Select a fiscal year for which you want to allocate quota. Creating a quota plan automatically takes a snapshot of active territories. Assign seasonality factor groups to the plan. Associate the seeded territory quota formulas to the quota plan.

    Tip: If quotas have largely remained unchanged from the previous year, then use the Copy Quota Plan option to move quotas from the previous year to the current year.

  5. In the North America Sales territory, select a territory quota formula and other options such as the adjustment threshold.

Prerequisites

  1. Define a calendar to be used by Oracle Sales Cloud. Quotas can be set for the year as well as for periods defined in the calendar. After the calendar is set up you can add years to it, but any other changes to the calendar can break quota features. A report calculated by time period is one example.

  2. Create and activate a territory hierarchy. Consider setting up territories with no coverage if you have no use case for territories but would still like to save quotas in the system for sales reporting. Each salesperson eligible to receive a quota must be assigned to an active territory.

  3. Territory metrics are enabled and have values. This is a prerequisite to using territory quota formulas to calculate quota.

Creating a Spread Formula

This spread formula calculates the ratio of closed bookings among the child territories, and applies the ratios to the quota amount a sales manager wants to spread among the child territories.

  1. Go to the Manage Spread Formulas page.

  2. Click Create to add a new spread formula.

  3. In the new row, enter information for the fields, as shown in this table:

    FieldValue

    Name

    Closed Revenue

    Description

    Spreads the source based on the ratio of closed revenue for the selected year.

    Metric

    Closed Revenue

  4. Click Save.

Creating a Seasonality Factor Group

  1. Go to the Manage Seasonality Factor Groups page and create a new group for summer products for the new year.

  2. In the Seasonality Factors region, enter the factor percentages for time periods, as shown in this table:

    Time PeriodFactor Percentage

    Quarter 1

    15

    Quarter 2

    40

    April

    5

    May

    15

    June

    20

    Quarter 3

    35

    Quarter 4

    10

  3. Click Save.

Creating a Quota Plan

  1. In the Manage Sales Quota Plans page, click Create.

  2. In the Sales Quota Plans table, enter the sales quota plan information, as shown in this table:

    FieldValue

    Name

    Fiscal Year 2015 Sales Plan

    Description

    Corporate Sales Quota Plan for Fiscal Year 2015

    Year

    2015

    Calculate Default Territory Quota

    Select. If selected, the application calculates the quotas for each of the territories using the default territory quota formula.

    Track

    Deselect. Only one plan can track quotas for the year.

  3. In the Details region, on the Options tab, enter the options as shown in this table:

    FieldValue

    Adjustment Threshold

    10

    Territory Quota Formulas

    Scale a measure from a past period by x percent. Use 5% and select the prior year, 2014.

    Seasonality Factor Group

    Summer

  4. In the Sales Quota Territory Options table on the Options tab, expand the Global territory and enter the options as shown in the table for the North America Sales territory.

    ColumnValue

    Allow Quota Edit

    Select

    Adjustment Threshold (%)

    8

    Territory Quota Formulas

    x percent growth of a measure over a 3 year simple moving average

    1. 3 percent

    2. Prior year 2014

    3. Closed Detail Revenue by Close Date measure

  5. Select Track for the quota plan.

  6. Click the Activate button and set the activation to right now to test. Upon activation, sales managers can go into the system to begin allocating quotas to their teams.

  7. Click Save.

Related Topics

Enabling Quota Copy: Explained

When you copy territory quota to resource quota, period quotas for the territory also get copied to resource period quotas, if enabled. You can also enable copying both territory and period quotas to resource quotas automatically during publishing. You can set the following profile options using Manage Administrator Profile Options in Setup and Maintenance.

Enable Territory Quota Period Copy

When set to yes, users can copy territory quota period amounts to owner resource quota periods. The copy overwrites any existing resource period quotas. The annual resource quota amount must be zero, or the period quotas won't be copied to resource quota periods. Period copy applies to the following actions:

  • Copy Territory Quota in the Edit Sales Quotas page

  • Copy Territory Quota in the Manage Sales Quotas page

  • Copy Child Territory Quota in the Manage Sales Quotas page

  • Publish territory quota, if the Enable Automatic Territory Quota Copy to Owner Quota on Publish profile option is also enabled

Enable Automatic Territory Quota Copy to Owner Quota on Publish

When set to yes, territory quota annual values are copied to owner quotas for the sales revenue goal when users publish territory quotas. You can also set the Enable Territory Quota Period Copy to yes. Then the territory quota period amounts are also automatically copied to owner resource quota periods during the publish process.

Scheduling Quota Processes

Your active quota plan needs to reflect the latest territory hierarchy. Sales managers or administrators frequently make changes to active territories directly, using territory proposals, or through web services. Only if you update territories using a territory proposal are the territory hierarchies synchronized automatically. Schedule synchronization to run frequently to provide the latest structure for allocating quotas.

Perform the following steps to schedule the Synchronize Quotas process to run daily.

  1. If you are using the implementation project provided with the Getting Started with Your Oracle Sales Cloud Implementation guide, then open the Synchronize Quotas task from the project.

  2. If you are not using the implementation project, then do the following:

    1. Sign in as a setup or sales administrator user.

    2. Open the navigator.

    3. In the Tools menu section, click Scheduled Processes.

    4. Click Schedule New Process.

      The Schedule New Process dialog appears.

    5. For the Type field, select Job.

    6. In the name field list, click Search.

    7. Search for Synchronize Quotas.

    8. Select Synchronize Quotas and click OK.

    The Process Details page appears.

  3. In the Parameters region, select the sales quota plan.

  4. Click Advanced.

  5. In the Schedule tab, select Using a schedule.

  6. Select the Daily frequency.

  7. Change the start date to when you want to start running the process, and select the time of day when you want it to run.

  8. Change the end date to a future date.

  9. Click Customize Times if you want to remove or add specific dates to those the application calculates.

  10. Use the Notification tab to add notifications to specific people when the process completes.

  11. Click Submit.

Quota Validation: Explained

Administrators can turn off the quota validation that occurs when sales managers publish quotas. The validation prevents assigning quotas prior to resource start dates (the same as employee hire dates) or territory quota start dates.

If an employee joins the company or a new territory is created midyear, then managers can't assign quotas for all of the year periods with validation turned on. To turn off validation, set the following profile option to no: Allow quota start date validation during publish.

Adding Reports to Sales Quota Pages: Procedure

You can create reports using Answers or Business Intelligence and add them to quota pages. Your reports appear in the Quota Analytics tab of the Managing Sales Quotas page or Edit Sales Quotas page. You can select the report from the list of reports on the page.

To add a report to your page:

  1. Create your Answers or Business Intelligence Publisher reports for quotas.

  2. In Setup and Maintenance, go to Manage Lookups.

  3. Go to the lookup type ORA_MOT_MSQ_REPORT for the Manage Sales Quotas page, or ORA_MOT_ESQ_REPORT for the Edit Sales Quotas page.

  4. Add a new lookup code for each new report to be added on the page. For example, to add a second report to the Manage Sales Quota page, add the lookup code MOT_QM_MSQ_REPORT2. To add a report to the Edit Sales Quota page the lookup code would be MOT_QM_ESQ_REPORT3. For each additional report to embed in the page, increment the number used in the lookup code.

  5. In the Meaning field, enter the report name, for example Quotas by Salesperson Report. The name does not need to match with the report name in the Business Intelligence catalog.

  6. In the Description field, enter the report absolute path, for example To find the absolute path:

    • For Answers reports, find the absolute path in the properties of the report.

    • For BI Publisher reports, click the Copy Resource button to find the absolute path to the report.

  7. Set the display sequence. This determines the order of the reports shown in the Analytics tab. The report lookup code with the lowest display sequence number determines the report that is displayed by default.

What happens when a sales quota plan is activated?

When you activate a sales quota plan the status of the plan is changed to completed when the plan year ends. You cannot make changes to a completed quota plan.

When you activate a quota plan a process carries out the activation. Another process runs when the quota plan year end date is reached, or if it has passed at the time of activation. The second process changes the status of the sales quota plan to Completed. You cannot edit a completed sales quota plan.

What happens if I select Calculate Default Territory Quota?

Your selection of Calculate Default Territory Quota causes the application to compute the quotas for each of the territories when the sales quota plan is activated. The computations use the formula and parameters you selected to be the default in Manage Territory Quota Formulas.

What's seasonality?

Annual quotas are distributed to shorter time periods, factoring in seasonal expectations in sales. This expectation is represented as a percentage factor, which reflects the share of quota for the season, or time period.

For example, your sales are typically higher the last quarter of the year and at their lowest the first quarter of the year for several of your product lines. You create the following seasonality factor group, named Retail, to automatically distribute your annual quota and factor in the seasons:

  • 10 percent for the first quarter

  • 25 percent for the second quarter

  • 25 percent for the third quarter

  • 40 percent for the fourth quarter

When you assign quota to territories that include these product lines, you apply the Retail seasonality group to correctly distribute the annual quota amounts.

What's the difference between territory and resource quota start and end dates?

Territory quota start date and end date define a period within which the sales quota target needs to be achieved. The territory quota dates must fall within the start and end dates of the quota plan, and usually match the sales quota plan start and end dates, unless a territory is created after the start of a sales quota plan or deleted during the course of a sales quota plan.

The resource quota start and end dates define a period within which the quota needs to be achieved by the salesperson, and usually match the sales quota plan start and end dates.

Resource dates vary from the sales quota plan start and end dates when:

  • A territory is deleted. All resource quotas within the territory have the same end date as the territory end date. The sales quota plan end date is not yet reached.

  • A territory resource is removed from a territory, and the resource is end dated.

  • Quota is assigned to a future dated resource who will join the organization in future.

Who is a territory administrator?

Sales managers often choose a salesperson or sales operations resource to assist with the quota setting and territory maintenance for the manager's branch.of the territory hierarchy. Select the Administrator check box for a territory team member in your territory. Now that person can view your territory and modify all territories lower in your territory hierarchy. She can also assign sales quotas for you.

You must add the Territory Management Administration Duty to a security job role assigned to the resource in order for the Administrator selection to take effect.

A user with the Sales Administrator security role can modify all territories and set all quotas.

How can I add period quotas prior to the resource start date or territory quota start date?

Your administrator can turn off the date validation that occurs when you publish quotas using the profile option named Allow quota start date validation during publish. The employee hire date is the same as the resource start date.

How can I publish quotas for a territory hierarchy?

As a sales administrator , you can bulk publish quotas by using the Publish action in the Publish or Revise Hierarchy Quotas process. Select the sales quota plan and the territory number that is at the top of the hierarchy for which you want to publish the quotas. The process publishes every territory within the hierarchy.

How can I set quotas to the Pending Revision status for a territory hierarchy?

After sales managers publish quotas, they cannot revise them unless the status is changed to Pending Revision. As a sales administrator, you can schedule the Publish or Revise Hierarchy Quotas process, and choose the Revise action. Select the sales quota plan and the territory number for the top of the hierarchy you want to revise. The process changes the status for every territory within the hierarchy to Pending Revision..

Quota Assignment

Quota Allocation, Publishing, and Revision: Explained

When sales managers complete assigning quotas to their directs, they publish the quotas to the owners and resources of their child territories. Child territory owners can then view their quotas for the territories they own. And in turn they assign and publish quotas to the owners and resources of their child territories. Publishing your quotas also sends notifications containing resource quota information to an incentive compensation analyst. The territory owner and the manager of the sales manager who published the quota receive notifications that the quotas are published.

Quota Allocation

You can allocate quotas in the Manage Sales Quotas page. Sales administrators can enter and edit territory and owner quotas for any territory quotas that aren't published. Sales managers can enter and edit child quotas that aren't published. For territory quotas that aren't published, you can also:

  • Enter or edit a quota for each period

  • Apply seasonality factors

Select a parent territory and click Details to use the Edit Sales Quotas page to enter or edit quotas. You can enter annual quotas, period quotas, and apply seasonality to any quotas not published.

Quota Publishing

When you finish allocating your quota, you publish the quotas to make them available to your directs. After publishing, you can't make changes to the quotas.

You can select one or more territories to publish. If you click Publish Child Territories, then the selected territories and their children are published. A sales administrator can publish a hierarchy of territories from the Actions menu. When you publish a territory, you publish the following, and the data becomes available for Business Intelligence:

  • Territory quota

  • Resource quotas for all sales goals for the selected territory

  • Quotas assigned to finer time periods

If you did not apply seasonality to quotas, then the publishing process applies the seasonality factor that was defined in the sales quota plan for the territory. If there are no seasonality factor groups defined, then seasonality factors are not applied and there is no granular time period quota. Excluded territories can't be published. Publishing fails if the selected territory or any territory resource has no quota.

Tip: Save time entering period quotas. Seasonality gets applied automatically on publish if you haven't manually entered period quotas.

Copying Territory Quotas to Resource Quotas

By setting two profile options, the administrator enables the automatic copying of quotas during publishing. Publishing does the following:

  • Copies the territory owner's annual quota for the sales revenue goal to the owner's resource quota.

  • If the owner's annual resource quota is zero, then publishing copies the territory period quotas to resource period quotas. It overwrites any existing resource period quotas.

Quota Revision

Before you can revise published quotas, you must change the quota status to Pending Revision. The Revise action changes the status for your selected territory and its children. You can then revise territory quotas, and add, revise, or end date resource quotas. When you complete your revisions you can again publish the quotas and send notifications. The territory quotas change to Published status and resource quotas change to Submitted status.

When you revise quotas, the revised values are not available in Business Intelligence until you republish the revised quotas.

Resource Quota and Incentive Compensation: How They Work Together

Compensation plans control how an employee is paid. Salespeople often get paid according to their performance. One tool used to measure performance is the establishment of a sales quota for the salesperson and then the comparison of actual sales for a time period with the salesperson's quota for that time period. The application notifies the compensation analyst any time quota is published or changed.

This figure shows the sales manager publishing territory resource quotas. The publication sends a notification to the incentive compensation analyst.

Managing Quotas

At the beginning of the year, sales management update their territory definitions and assign salespeople to territories. Senior managers assign quotas to their territories and child territories. The owners of those territories in turn assign quotas to the owners and resources of their child territories. When a manager publishes quotas, the quotas become available to the owners of the child territories. Also, a notification goes to the compensation analyst with the now published quota information.

During a quota plan period, changes occur in territory definitions, resource assignment to territories, and to quota assignments to resources (salespeople). Managers can choose to submit updated quota information to the compensation analyst in the form of a notification.

Sales Goals

A sales goal determines how quota is measured and defines what you want to measure. The sales goal used for a territory owner's revenue quotas is the Revenue Sales Goal. In order to assign multiple quotas to an individual salesperson or to assign quotas to salespeople other than territory owners, you must use a sales goal other than the Revenue Sales Goal. Following are some examples of sales goal definitions:

  • Number of customer visits

  • Number of service contracts sold

Notifications to compensation include quotas for each quota-carrying resource for all sales goals. For each salesperson, the notification contains all the annual resource quotas for all applicable goals as well as the period quotas.

Updating Compensation Plans

The compensation analyst creates compensation plans for a specific time period. The analyst uses quota notifications to keep the quota information in the plan correct and up to date. The analyst analyzes the provided information, performs any other research needed, and manually updates the quota plan or rejects the notification. The compensation plan quota status is set to complete when the compensation analyst completes updating the compensation plan.

Sales Quotas Export and Import: Overview

Within a selected quota plan in Manage Sales Quotas, you can select a territory hierarchy within your control and export resource quotas and territory quotas to CSV files. During the quota planning cycle, sales operations users consolidate quota information for the territories that they support and import the new quota allocations.

From the territory quota table in Manage Sales Quotas, go to the Actions list and select Export or Import. You can import data only to quota plans that are active and being tracked.

Territory quotas, territory period quotas, resource quotas, and resource period quotas are exported and imported using the following four CSV files:

  • Territory_Quota.csv

    The file includes the territory name, parent territory, and territory quota.

  • Territory_Period_Quota.csv

    The file includes the quota by period (for example, month) for each territory quota.

  • Resource_Quota.csv

    The file contains the resource quota per sales goal, and related compensation plan notification status.

  • Resource_Period_Quota.csv

    The file includes the quota by period (for example, month) for each resource quota.

One or more CSV files must be in a compressed file to be imported.

Incentive Compensation

You can export resource quotas and resource period quotas to send to incentive compensation for importing performance goals.

  1. Navigate to Territories and Quotas.

  2. In the Tasks pane, click Manage Sales Quotas.

  3. Select an active sales quota plan.

  4. Select the territory that you want to export. The export includes all descendants of the selected territory and all resources for each territory.

  5. From that Actions menu, select Export, then Export Sales Quotas.

  6. From the Actions menu, select Export, then View Export Status.

    The page lists past exports and the status of your export.

  7. When the process succeeds and you see your export compressed file in the list.

  8. Click the compressed file link and save the file.

  9. Click OK.

Using Export and Import to Modify Sales Quotas: Procedure

You can export sales quotas, make additions and changes, and import your quota information to the active sales quota plan.

Prerequisites

You need the following prerequisites:

  • You must have an active sales quota plan. Your sales administrator creates sales quota plans. You don't need existing quotas in order to export. The export provides the CSV files you use for importing quotas.

  • You must have a duty role that is mapped to the ORA_ZBS_SALES_ADMINISTRATOR_JOB privilege.

Exporting Quotas

Export quotas for a selected territory and its descendants.

  1. Navigate to Territories and Quotas.

  2. In the Tasks pane, click Manage Sales Quotas.

  3. Select an active sales quota plan.

  4. Select the territory that you want to export. The export includes all descendants of the selected territory.

  5. From that Actions menu, select Export, then Export Sales Quotas.

  6. From the Actions menu, select Export, then View Export Status.

    The page lists past exports and the status of your export.

  7. Click Refresh until the process succeeds and you see your export compressed file in the list.

  8. Click the compressed file link and save the file.

  9. Click OK.

Modifying Sales Quota Data

Use your spreadsheet program to add, change, and delete quota information to the CSV files used for quota import. You can modify any one file or all four files.

  1. Extract the files contained in the compressed file.

    The four files are:

    • Territory_Quota.csv

      The file includes the territory name, parent territory, and territory quota.

    • Territory_Period_Quota.csv

      The file includes the quota by period (for example, month) for each territory quota.

    • Resource_Quota.csv

      The file contains the resource quota per sales goal, and related compensation plan notification status.

    • Resource_Period_Quota.csv

      The file includes the quota by period (for example, month) for each resource quota.

  2. Open your CSV files in a spreadsheet program. You can open Territory Quota and Resource Quota files directly. But you must import the Territory Period Quota and Resource Period Quota files to Excel in order to retain the original date format for the start date and end date fields.

    1. Open a new spreadsheet.

    2. From the Data menu, select Get External Data From Text.

    3. Select the CSV file.

    4. Click Import.

    5. Select Delimited and click Next.

    6. Select Comma, deselect any other delimiters, and click Next.

    7. In the Data Preview region, scroll to the Period Name column and select it.

    8. Under Column data format select Text.

    9. Click Finish.

      The period name should appear in your spreadsheet as hyphenated text, for example 12-20. If you open the file without using import, Excel converts this name to a date, which causes an error when you import the file.

  3. Update the files with your additions or changes. Because you are able to add or delete resources in the Resource Quota tab of the Edit Sales Quotas UI, the Resource Quota file contains the Action column. In this column, enter , , or to each row you change.

  4. Save your CSV files.

    Caution: Don't change the names of the CSV files.

  5. Compress your modified CSV files together, or compress a single file if you modified only one. You can use any name for the compressed file.

Importing Quotas

You can import any one of the CSV files, up to all four files. No matter how many files you want to import, they must be in a compressed file. You don't need to select a territory when you import, but security applies during the import. For example, you can't make changes to quotas for territories you can't access.

  1. Go to Manage Sales Quotas.

  2. In the Edit Sales Quotas region, click the Actions menu.

  3. Select Import, then Import Sales Quotas.

  4. Browse and select the compressed file that contains your updated files.

  5. Click OK to submit the file.

  6. Click OK to close the information message.

  7. From the Actions menu, select Import, then View Import Status.

  8. Click Refresh to update the status until the process completes.

  9. If you see a rejected data file, click the link to save the reject compressed file.

  10. Extract the CSV files from the rejected compressed file.

    The files contain data that could not be imported.

  11. Open each CSV file and correct the data.

  12. Compress one or more files and reimport the compressed file.

  13. To see your imported data in Manage Sales Quotas, refresh your screen by navigating away from it and then back.

What's a variance?

The variance is the difference between the adjusted quota amount for the parent territory and the rolled up total amount from the child territory quotas. The variance can be spread, meaning it gets added to the child territories.

What's an adjustment?

An adjustment is the amount that territory owners, or sales managers who have child territories, add to the territory quota assigned to the territory they own. The territory owner can then allocate the adjusted territory quota to child territories.

Quota Import References

Territory Quota Import File Reference

The following table lists the columns included in the Territory Quota file along with descriptions. Territory Quota and Allocation Comments fields will be updated from the file. The rest of the required fields are used for validation.

QuotaPlanName

The sales quota plan containing the territory quota. Unique user key.

Yes

ParentTerritoryName

The name of the parent territory for the territory that is assigned the quota.

No

TerritoryNumber

External territory identifier. Unique user key.

Yes

TerritoryName

Name of the territory.

No

StartDate

The start date of the quota period in MM/DD/YY date format.

No

EndDate

The end date of the quota period in MM/DD/YY date format.

No

TerritoryQuota

Quota assigned to this territory.

No

Currency

CRM corporate currency

No

Status

Status of this territory quota: PUBLISHED, NON-PUBLISHED, or PENDING REVISION.

No

PublishedDate

Date territory quota is published, in MM/DD/YY date format.

No

AllocationComments

Allocation comments for the quota.

No

Territory Period Quota Import File Reference

The following table lists the columns included in the Territory Period Quota file along with descriptions. The Territory Period Quota field will be updated from the file. The rest of the required fields are used for validation.

QuotaPlanName

The sales quota plan containing the territory quota. Unique user key.

Yes

ParentTerritoryName

The name of the parent territory for the territory that is assigned the quota.

No

TerritoryNumber

External territory identifier. Unique user key.

Yes

TerritoryName

Name of the territory.

No

PeriodName

Name of the period from GL_PERIODS. Unique user key.

Yes

StartDate

The start date of the quota period.

No

EndDate

The end date of the quota period.

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