Are you looking to simplify your business processes by streamlining Sales Planning and Incentive Compensation Management? If so, investing in sales performance management solutions is the right choice. Sales Performance Management portfolio from SAP offers integrated solutions for Incentive Management and territory and quota management in SAP SuccessFactors Incentive Management and SAP SuccessFactors Territory and Quota.
SAP provides advanced end-to-end sales planning through SAP SuccessFactors Territory and Quota, along with seamless quota integration to SAP SuccessFactors Incentive Management. This combination enables our customers to experience accurate and efficient Sales Compensation processes, coupled with end-to-end Sales Planning.
The Out-of-the-box quota integration is done via the SAP Business Transformation Platform (BTP) / SAP Integration Suite approach as Order à Transaction-based Integration to SAP SuccessFactors Incentive Management. It also supports the configuration, tracking, and triggering mechanisms within the SAP SuccessFactors Territory and Quota. Quota distribution is integrated based on user preference via an API-based or XDL (express Data Loader) file-based approach, followed by job monitoring and error handling.
The Integration covers:
- Quotas, including sub-quota targets .
- Transaction Pre-assignments, along with their Split % .
- Mapping core territory details for referencing in Sales Compensation Plan rules and reporting/dashboard purposes.
Check out the video here: Deriving Quota Baseline with Custom Formula
Quota 2.0 of the SAP SuccessFactors Territory and Quota solution introduced a significant leap in functionality, which translated to commercial success in recent years. The Quota Setting functionality helps you derive the Quota value for a territory program (structured with territories, sales teams, accounts, products, and geographies). It exposes all alignments for configured dimensions across all territories in the selected territory program.
It provides the flexibility to accommodate cross-KPI-based criteria for intelligently calculating the quota baseline. Its enhanced functionality allows for the bulk calculation of the quota baseline at scale. This way, sales leaders can save time to value by focusing on the sales planning strategy, potentially increasing revenue potential.
How do you derive your current financial year quota values? Do you have multiple complex requirements for accommodating the series of calculation methods specific to your organization? However, these calculations can be tedious and time-consuming when performed manually, and therefore, there is a need for automated solutions for Sales Quota calculations within the SAP SuccessFactors Territory and Quota.
For example, to perform the 2024 Quota setting for an Account within a Territory for a target type called "SALES," the calculation is dependent on a combination of specific data elements, such as:
- Account's previous year's sales
- Current Year CRM Opportunity data
- % of another quota target type value
- Financial Budget number (a static value)
With the formula as - (3 Year Historical Average + % of Current Year CRM Opportunity data + % of another quota target type value + Financial Budget number (a static value)), You can achieve this efficiently using our advanced calculation type, "Custom Formula," of the Quota NEW feature within SAP SuccessFactors Territory and Quota. This allows administrators, such as sales leaders, more flexibility in defining formulas in quota calculations.
How does this Custom formula work?
Custom formulas enable you to use Historical, Pipeline (CRM Opportunities), Quota, and Custom Values from different target types in custom formula calculations.
When setting the quota baseline, you can choose the Custom Formula as the Calculation Type. You can select up to 6 data elements for the calculation. The application automatically numbers the data elements in the Order in which they're added. Each data element is preceded by its identifier number, which can be referenced in the formula definition.
The formula is validated, allowing for a fail-safe value in case of no value outcome. When the User clicks on "Apply," a job will be triggered in the UI, showing up as a banner as the Job is running in the background. Once the Job is completed, the Quota Setting page will be populated with calculated Quota Baseline values per the above-defined criteria and weightings per criteria through Custom Formula as Quota Calculation Type.
To learn more please refer to SAP SuccessFactors Territory and Quota Hep Portal - https://help.sap.com/docs/SAP_Territory_and_Quota?locale=en-US
