Salesman incentive should be based on orders or on invoices, picked once for the period and left there, because those two registers give credit at different moments. There is no collections basis on Team Sales. Sales incentive on orders or invoices, on this Guwahati book, is Raju on Station Road in August: target ₹8,00,000, Sales Orders ₹9,20,000, invoices ₹6,40,000. Gupta Stores' Tuesday order is ₹42,000. The office later bills ₹25,000 of it. A cancelled line never becomes an invoice. Gupta Stores also paid ₹8,400 by UPI against an old bill, and that receipt stays on the dealer. Five salesmen, about 120 dealers, five road names. Team Sales has the Orders / Invoices toggle so the leaderboard and the commission figure follow the same choice. This article walks when credit is given, what a cancellation does, and what a partial invoice does.
Key Highlights
- Orders basis gives credit when the Sales Order is booked. Invoices basis gives credit when the invoice is raised
- A cancellation before billing drops out of an orders pile and never entered an invoices pile. A partial invoice of ₹25,000 on a ₹42,000 order counts in full on orders, and only ₹25,000 on invoices
- Team Sales toggles Orders or Invoices. Receipts cannot be attributed. Gupta Stores' ₹8,400 UPI does not move commission
In This Article
- Should salesman incentive be based on orders or on invoices?
- When credit is given, cancellation, and a partial invoice
- What a cancellation does to August
- What a partial invoice does to Tuesday's ₹42,000
- Pick a basis and stick to it
- What the toggle does not cover
- Frequently Asked Questions
Should salesman incentive be based on orders or on invoices?
On one of those two. The honest answer is that both are used in distribution, and they produce different winners in the same month.
Sales incentive on orders or invoices is the choice of which Tally register feeds the number you pay on. An order is a Sales Order. An invoice is a sale that has been billed. A receipt is neither. Beat-wise sales management already puts the field order into Tally as a Sales Order. The office converts it the way it already does. Incentive follows whichever of those two you point at.
Team Sales, on the Salesman app for Tally, carries that toggle. Period is Month, Quarter or Year. Salesman targets and commission from Tally is the screen around it. This post is the basis.
When credit is given, cancellation, and a partial invoice
The table is the decision. Read it once, then leave the toggle alone for the period.
| Orders basis | Invoices basis | |
|---|---|---|
| When credit is given | When the Sales Order is booked | When the invoice is raised |
| Cancellation before invoice | Those rupees leave the orders pile, because the order is no longer a live Sales Order | Nothing to remove. The order never entered the invoices pile |
| Partial invoice | The full order already counted | Only the billed slice counts. The open remainder waits |
Tuesday, Gupta Stores, Station Road. Raju books ₹42,000 after check-out. On orders basis that ₹42,000 is already his. On invoices basis it is not, until the office raises a bill.
The owner who wants booking rewarded points at Orders. The owner who wants stock out and billed before anyone is paid points at Invoices. Both are Tally sales. Neither is a collection.
What a cancellation does to August
Wednesday morning Gupta Stores calls. Two cartons were a wrong scheme. The office cancels ₹12,000 of Tuesday's order before anyone has invoiced it.
On orders basis, August should no longer carry that ₹12,000 for Raju. The live Sales Order is now ₹30,000. Credit followed the order, so when the order shrinks, the incentive pile shrinks.
On invoices basis, August never had the ₹12,000. No invoice existed. There is nothing to claw back. The remaining ₹30,000 still waits for a bill.
That is why the two columns disagree about a cancellation. One register had already counted the rupee. The other had not. Mixing the two mid-month is how the owner and Raju spend Thursday arguing about ₹12,000 that both of them can see on different screens.
A cancelled order is still a Tally fact. Team Sales reads the register you pointed it at. Salesman order taking without re-entry is how the original ₹42,000 got there. Cancellation is the office doing what it already does in Tally. The basis decides whether Raju had been paid on that rupee yet.
He WhatsApps. "Woh 12,000 cancel ho gaya, commission se katega?" The answer is the toggle that was set on 1 August, not a fresh negotiation on Wednesday.
What a partial invoice does to Tuesday's ₹42,000
If instead the office bills ₹25,000 of Tuesday's ₹42,000, ₹17,000 stays open. Pending orders not yet invoiced still lists that remainder.
On orders basis, Raju already had the full ₹42,000 when he booked it, so Friday's bill does not add a new incentive rupee. The order was the event.
On invoices basis, Friday is the first credit: ₹25,000. The ₹17,000 still does not count. When the office bills the rest next week, that slice joins August or September depending on the invoice date.
Same Tuesday visit. Same 14 cartons. Two different incentive timelines. Sales incentive on orders or invoices is that lag, written as a table so nobody has to reconstruct it from memory at month end.
A Guwahati book with five salesmen will have a dozen of these every week. Fancy Bazaar parties who take a full booking and get two invoices. NH-37 shops who cancel a line after the van has left. The basis is the only way those rows stay comparable across Raju and Manoj.
Pick a basis and stick to it
Set it when you set the targets. Salesman targets and commission from Tally already has Raju at ₹8,00,000 for August. If that ₹8,00,000 is an orders target, the toggle is Orders for the whole month. If it is an invoices target, the toggle is Invoices. Changing it on the 20th, after Raju has ₹9,20,000 of orders and ₹6,40,000 of bills, is how a crossed target becomes a short target without anyone's market changing.
Month, Quarter and Year still apply. A quarter target of ₹24,00,000 on invoices is a billing number. The same figure on orders is a booking number. Do not compare Manoj's quarter on Orders with Raju's quarter on Invoices. Team Sales shows one basis at a time for the team. Use it that way.
Who gets credit for the order can still move a sale from Manoj to Raju after a covering day. Reassignment does not change the basis. It changes the name. Tally is not touched. The ₹18,000 Manoj booked on Station Road becomes Raju's on whichever register you are already reading.
Stick to it means the five men can recite the rule. "Order pe milta hai" or "bill pe milta hai." One sentence. The leaderboard then stops being a debate. A salesman-wise sales report from the register still sits beside that, the same Tally sales, without a second spreadsheet.
What the toggle does not cover
It does not cover money in. Gupta Stores' ₹8,400 UPI at 3 PM is a receipt on a dealer. Team Sales has no collections basis. Receipts cannot be attributed. Commission follows orders or invoices, the Tally sales the owner already chose.
It does not cover visit stamps. Raju's camera check-in at Gupta Stores is how the owner knows he stood there. Incentive is not paid on the photo.
It does not invent a third register. There is no "delivered" basis. Mark delivered is a Takkada-only tick on the Load sheet. Tally is not told an order was delivered. Paying on delivery would need a fact Tally does not hold.
What field teams actually need from a Tally app in India is still the order into the books. The incentive argument is only which of those two sales documents you pay on. Pick one. Leave it for the period. Read the leaderboard at 8 PM without a second spreadsheet.
Frequently Asked Questions
Q: Should salesman incentive be based on orders or on invoices?
A: On one of those two, picked for the period and left there. Orders give credit when the Sales Order is booked. Invoices give credit when the bill is raised. Team Sales has that toggle. There is no collections basis.
Q: What does sales incentive on orders or invoices do with a cancellation?
A: If the order is cancelled before anyone invoices it, an orders basis drops those rupees because the live Sales Order shrank. An invoices basis had never counted them. The two piles only disagree when the order had already been treated as earned.
Q: How does a partial invoice change the incentive figure?
A: On orders basis the full live order already counted, so a ₹25,000 bill on a ₹42,000 order does not add a new incentive rupee. On invoices basis only the ₹25,000 counts until the rest is billed.
Q: Can I mix orders one week and invoices the next?
A: You can flip the toggle, and the five rows will jump. The useful rule is to pick at the start of Month, Quarter or Year and leave it, so Raju's ₹8,00,000 target still means the same register on the 31st that it meant on the 1st.
Q: Does a UPI collection count toward incentive?
A: No. A receipt sits on the dealer. Receipts cannot be attributed to a salesman. Gupta Stores paying ₹8,400 does not move Raju's commission on Team Sales.
Q: Does the basis change the Tally voucher?
A: No. The Sales Order and the invoice stay in Tally as they are. The toggle only chooses which of those two sales totals Team Sales reads for the leaderboard and the commission figure.
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