Commissions on Billed Timesheets
Exciting Employees with New Compensation Options
4 February, 2022 by
Commissions on Billed Timesheets
Jared Kipe

Commissions can be a desirable form of compensation, but traditionally is limited to sales representatives. Commissions can be an exciting and rewarding way for employees to take control, so to speak, of their own compensation by tying it directly to the goals of the company.

Reasons for Commissions

Commissions works best when the pay out aligns for both the employee and business. Historically, that means that a sales person is paid for some portion of the sale because the business desires new sales. Sometimes this includes bespoke rational like paying higher commissions on new work. Hibou can help you setup or extend commission for your company.

What if your business goals include billed timesheets? Wouldn't it make sense to revenue share with the individuals providing the service your company provides?

Challenges for Timesheet Commissions

The main challenges would be the analysis of individual invoice timesheet components.  At the simplest level, this would just be to group the timesheets by employee and apply a rate.  But what if you bill timesheets at different rates, or have multiple sale order lines with blended timesheets against them? This math and process quickly becomes one where you would need to export, manipulate in a spreadsheet, and import or otherwise create the commission journal entries.

We conducted an experiment and this process on a typical invoice consisting of 4 employee's timesheets with a mix of 2 line rates and 2 different timesheet rates and concluded that it would take at least 30 minutes per invoice, and could be error prone.

Hibou to the Rescue

Hibou's new Timesheet Commissions (hr_commission_timesheet) is available now on versions 13, 14 and 15 of Odoo! This module is an extension of Hibou's Commission module, so you will want to install and configure that module as well.

To use, you simply set a percentage rate on the employee's contract record, and invoice as usual. Timesheets will be generated with the base amount as the amount of the invoice's total that came from the employee's timesheets.  If you have sale order lines with different unit prices, then those prices will be used.  If you use Hibou's Timesheet Billing Rate module, then the billing rate of the timesheet entry will be factored in.

Of course, from a Payroll perspective, you can use Hibou's Commissions in Payslips module and automatically pay your employees on a rolling basis as commissions become available (i.e. the customer pays their invoice). 

Have an idea on how commissions could work for you? We would love to hear about it in the comments! (or through any of our support/contact methods)

Commissions on Billed Timesheets
Jared Kipe 4 February, 2022
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