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Sales Target Allocation to the Sales Person and Reporting In ERPNext
ERPNext is a robust open-source cloud-based ERP (Enterprise Resource Planning) Software which offers a wide range of Modules, providing numerous functionalities for managing various aspects of a business like Purchase, CRM, Sales, Inventory, Accounts, etc.
Amongst these widespread functionalities, one distinctive functionality is the ability to manage Sales Targets for your Sales People in order to assist your organization in analyzing the performance of your sales team.
Today’s modern era organizations are using many analytical tools and one such tool is Predictive Analytics to analyze data and forecast future revenues and other activities for the upcoming financial year while planning a course of action to achieve their target.
And that is why ERPNext has a Special feature to manage the sales targets of salespersons which further allows you to analyse the salesperson’s performance based on pre-set targets and variance thereafter if any.
Now, let us take you through the process of setting up the sales targets and generating variance reports. The prerequisites for the same are:
● Item
● Customer
● Sales Person
Create a Sales Person in ERPNext
We need to first create a Sales Person in ERPNext using the following steps.
You can create a salesperson and add other salespeople under the main salesperson, if any. Then the Sales Target can be allocated to them.
a) From Awesome Bar go to “salesperson list ” or selling module> selling>salesperson.
b) Click on “Add Salesperson”
c) Enter the “salesperson name” and select the “employee”
d) Enter the “parent salesperson” like team leader or sales manager if any.
e) Enter the “Commission rate” you can leave this column blank as per the requirement.
f) Under the table “Salesperson Targets” we can assign the targets based on item group, as per the requirement, we need to fill the following fields:
i) Item Group
ii) Fiscal year for the target
iii) “Target qty” and “Target Amount”
iv) Select “Target Distribution”
(1) Target Distribution:
The fiscal year targets can be distributed/spread across months using Target Distribution Feature. This feature allows you to set different monthly targets based on festive season or peak season requirements.
Go to Accounting >> Monthly Distribution>>Add new monthly distribution
(a) Enter The distribution name
(b) Select “ Fiscal year”
(c) Allocate the month-wise Target Percentage
(d) Click on save
2) Allocating Salesperson to the Customer
a) From Awesome Bar go to ‘Customer List ’
b) Create a new Customer by adding the necessary detail
c) Navigate to the sales team tab team
d) Add the salesperson's "Contribution"
3) Sales Persons in the Sales Transactions
Once we map the Sales Person in Customer master, on selection of that Customer in the transactions, Sales Persons (as updated in the Customer master) will be fetched into sales transactions.
a) Go to Awesome Bar>>Sales Order>> “New sales orders”
b) Select the “customer name”( For whom you have assigned a salesperson in the customer list)
c) In the item table enter the item code, Delivery Date, QTY
d) Click on “save” to Draft and submit to submitted
Note: We can see the Sales person detail in “More Info” tab under the Sub-heading “Sales team”, the assigned “salesperson” and “Contribution” will appear in this table.
4) Report- Sales Target Variance of Sales Person
Based on the Sales orders submitted the Sales Target Variance report can be generated which allows you to see the variance between the set target and actual performance of the Salesperson.
Go to Selling > Other Reports > Salesperson Target Variance Item Group-wise
The Report gets automatically updated as the “Target versus achieved Sales order based on Item Group”.
If the sales person achieved lower than the allocated target the variance is reflected in the red color and if the sales person has achieved the target and SO are submitted beyond the monthly Target level it is reflected in the green color.
We can export the report at any point of time in the pdf or Excel format-as required.
There are various filters to view the report in Detail the Filter, such as:
1. Company
2. Fiscal year
3. Document type (Sale order, Delivery note, Sale invoice)
4. Period (Monthly, Quarterly, Half-yearly, Yearly)
5. Target (Quantity, Amount)
To wrap this up, ERPNext is a complete solution to manage sales and sales targets and to further analyse the overall performance of your sales team. Obtain the maximum advantage and predict your future revenues with ERPNext today!
Frequently Asked Questions
How do you set a company's sales target?
In ERPNext, you can set up the company's sales goals by navigating to the Sales Target Doctype, specifying the target period, selecting the sales person or team, and defining the target amount or quantity.
How do you create sales goals?
To create sales goals in ERPNext, you typically create Sales Target doctype for specific periods, teams, or individuals, setting numerical targets for sales revenue or quantity sold.
How do you assign sales targets?
In ERPNext, sales targets can be assigned by creating the Sales Target doctype, and associating them with specific sales person or team in your organization.
Watch the Video for more.
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