I have a case where I want to create a custom object in HubSpot to track sales commission based on their quota attainment.
Here’s what I know:
Commission payout is done quarterly.
We pay commissions based on recognized revenue not quoted revenue. (A customer signs for a $100K deal but pays $50K, then the commission payout will be on the paid amount).
In a certain quarter, a customer who closed in previous quarters, will pay an amount that is due on the contract signed.
So, we will not only consider closed deals in that quarter, but all payment received in that quarter for deals closed by the AEs.
I am thinking of using rollup properties and association labels between this custom object and the close deals, but can’t crack how to only consider paid amounts, taking into consideration that we don’t use HubSpot payment module.
This is an interesting one to crack indeed. I’m going to lean on our community for this one, but while we wait for some peer input heres an existing community thread that might spark some ideas: Sales Commission Set-up
If you’re using invoices in HubSpot, you might want to check out the Create, Edit, and Renew contracts directly in the CRM beta, as it’ll allow you to manually create Contracts and associate them with invoices and it does this calculation for you automatically so you get your Total contract value from line items and Total billed amount and Total paid amount from the associated invoices.
It’s worth to mention that commission will be paid out gradually based on quota attainment. Meaning, if an AE achieved 50% or less of their targets, they will not be eligible for commission. If they achieved 50-70, they will get part of their OTC.. etc.
@EugeneAtKiwi No, we’re not utilizing invoices in HubSpot as our invoices gets generated from our accounting software. Also, we use quotes for proposals and contracts, so, we’re also not utilizing this.
Are you open to changing the integration or process behind this? A commission object alone won’t solve it unless we can reliably match payments from your accounting system to the right deals and reps. How is that connection handled today?
Hi
I think the first step is making sure the actual payment OR revenue data is recorded in HubSpot. Since commission is based on recognized revenue rather than the original deal amount, HubSpot needs visibility into what was actually paid and when.
One approach would be to create a custom object for Payments (or Recognized Revenue) and associate each payment record with the relevant deal and sales rep.
For example:
Deal amount: $100,000
Payment received: $50,000
Payment date: Q2
Associated deal: $100,000
Sales rep: John
If another $20,000 is received in Q3, that would simply be recorded as a second payment record associated with the same deal.
Your Commission custom object (or reporting layer) can then use these payment OR revenue records to calculate the amount attributable to each AE for a given quarter.
The fact that you don’t use HubSpot Payments isn’t necessarily a blocker. Payments can continue to be processed through your existing accounting or billing system. The key is having a reliable way to get that payment data into HubSpot, either through:
An integration with your accounting system
API-based updates
Regular imports
A manual process
I would also recommend assigning ownership of that process (Finance, RevOps, etc.) so that every payment received is correctly recorded and associated with the right deal.
Once the payment data is consistently captured in HubSpot, you can leverage associations, rollup properties, workflows, and reporting to calculate commissions and quota attainment accurately across quarters.
