> For the complete documentation index, see [llms.txt](https://docs.rishvi.co.uk/linnworks/llms.txt).
> Use it to discover all available pages before exploring further.
# Commissions
Commission plans help drive sales performance by rewarding individuals or teams based on measurable results. Odoo’s Sales app allows businesses to design flexible commission structures aligned with revenue, volume, margin, or recurring sales objectives.
## **Configuration**
To activate commissions, go to **Sales app ‣ Configuration ‣ Settings**.\
Under the **Invoicing** section, enable the **Commissions** option and click **Save**.
Once enabled, a **Commissions** menu appears.\
To create a new plan, navigate to **Commissions ‣ Commission Plans** and click **New**.
## **Commission plan structure**
A commission plan consists of several key elements:
- **Based on**: Defines whether commissions depend on **Targets** or **Achievements**
- **per**: Specifies if the plan applies to individual users or sales teams
- **Target Frequency**: Determines how often targets reset (**Monthly**, **Quarterly**, or **Yearly**)
- **Achievements**: Defines the performance metrics used to calculate commissions
### **Target-based commission plans**
Target-based plans reward users according to how much of a predefined goal they achieve. These plans are useful when you want to set clear objectives, such as reaching a specific revenue amount within a given period.
**Tip**\
Unlike achievement-based plans, target-based plans focus on progress toward a fixed goal, making them ideal for milestone-driven incentives.
To configure a target-based plan:
1. Go to **Sales app ‣ Commissions ‣ Commission Plans**
2. Click **New**
3. Set **Based on** to **Targets**
4. Choose whether it applies per user or team
Then configure:
- **On Target Commission**: Commission paid when 100% of the goal is achieved
- **Effective Period**: Validity dates for the plan
- **Target Frequency**:
- *Monthly*: frequent tracking and payouts
- *Quarterly*: balanced evaluation cycles
- *Yearly*: long-term strategic goals
After selecting the frequency, define targets for each period in the **Targets** tab.
In the **Achievements** tab, add one or more **achievement metrics** using **Add a new achievement**.
Assign users in the **Sales People** tab using:
- **Add a new Sales Person**
- **Add Multiple Salespersons** (available in developer mode)
### **Commission levels**
You can introduce multiple commission tiers within a target-based plan to reward different performance levels.
These levels can begin at `0%` and extend beyond `100%`, allowing commissions to scale as performance increases.
If no levels exceed 100%, earnings are capped at the target commission.
**Example**
In the example below, commission levels go up to `300%`, meaning earnings continue increasing even after exceeding the initial goal.
### **Achievement-based commission plans**
Achievement-based plans calculate commission as a percentage of actual results, such as invoiced amounts. These plans are ideal for consistent rewards without requiring predefined targets.
For example, a salesperson may earn `5%` on all invoiced sales regardless of volume.
**Tip**\
These plans differ from target-based ones because they apply a fixed rate directly to performance, rather than measuring progress toward a goal.
To configure:
1. Go to **Sales app ‣ Commissions ‣ Commission Plans**
2. Click **New**
3. Set **Based on** to **Achievements**
4. Choose whether it applies per user or team
Then:
- Define the **Effective Period**
- Set the **Target Frequency**
Add performance metrics in the **Achievements** tab using **Add a new achievement**.
Assign users via the **Sales People** tab.
### **Achievements**
Achievements determine how performance is tracked within a plan. These are configured in the **Achievements** tab.
Available metrics include:
- **Amount Sold**: Total value of sales orders
- **Amount Invoiced**: Total confirmed invoice value
- **Quantity Sold**: Units sold through sales orders
- **Quantity Invoiced**: Units included in invoices
- **Margin**: Profit generated (sales price minus cost)
- **MRR**: Monthly recurring revenue from subscriptions (requires the **Subscriptions** app)
**Note**\
All plans require both **Targets** and **Achievements** to be defined, regardless of the selected plan type.
## **Plan approval**
Once the plan is configured, click **Approve** to activate it. This changes its status from **Draft** to **Approved**.
**Important**\
Approved plans cannot be modified. To make changes, the plan must first be reset to **Draft**.
After approval, Odoo automatically tracks performance and calculates commissions according to the defined rules.