Commission Payments

A system from SME Data Solutions replaced an ineffective and error-prone process based on Excel spreadsheets. The development process drove a complete re-think of the commission tiering system's rules and processes. Commission spending lowered by 10% by eliminating calculation errors and queries from salespeople dropped to 1.4% the previous level.

Background

The company employed circa 600 sales people and the payment of commissions was managed by 5 administrators. The existing system was based on Excel and it had been recognised (primarily as a result of around 6000 queries being raised by salespeople each year) that salespeople were generally being incorrectly paid. Although an enterprise scale system was wanted, there was neither the budget nor the time to source and implement it.

Solution

To build an Access database to manage the sourcing of data, calculations and payment of commissions plus provide a monthly report to each salesperson as to how their commissions were calculated. During the processes of designing the database, business rules were clarified, links were created with other systems – invoicing, sales ledger, CRM, HR, contracts and more to automatically collect the required data and a flexible calculation ‘engine’ created so that a multitude of different payment basis’s could be managed

Outcome

The number of queries raised by sales people reduced to less than 100/year, releasing three of the administrators to other duties. The sales people spent less time checking their statements and more time selling, whilst commission spend reduced by around 10% as a result of having non-ambiguous business rules and accurate data on which to base the calculations.
Several years later the enterprise scale system was introduced and the work done in clarifying the process and rules made for an easy implementation.