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Contribution Margin
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Detailed Description

Configuration of Sales Commission Module

In order for the system to calculate contribution margin of charges raised and contribution margin distribution, a number of parameters need to be configured.

Revenue Rate

Revenue rate is configured through the Company Information form under the Company Setup section of Centre Bill. The revenue rate determines the percentage of revenue retained by the company.




Departments and Users

Departments and users are configured through the Department Info form as shown below. The provider, for the purposes of the Sales Commission Module, is organized in a hierarchical structure in a similar fashion to the structure tree. The first level of the hierarchy is the provider, second level for departments, third level the manager of the department, and fourth level customer representatives.


 

Each customer has an associated customer rRepresentative that is configured through the main form; customer view denoted by 'Managed By'.



Service Costs

Each service has a set of associated service costs. Four types of service costs need to be configured;
  • Fixed Costs
  • Variable (Mb)
  • Variable (time)
  • Overhead Cost

Calculation of overhead cost is defined by an authorized user with cost accounting experience and is intended to include other costs such as cost of bandwidth and personnel costs associated with the service.

Configuration of service costs can be customized on either group, type, item, or instance level. Changes made on one level will propagate according to the rules of inheritance in the system.



CentreBill also allows authorized users to customize service costs for each service instance:


 

Service cost of manually inserted charges is calculated based on the fixed service cost of the service selected. If the service has no fixed service cost configured, the user is required to manually enter the service cost. The user will not be able to add the charge to the charge list if no service cost is entered. When a default service cost is configured the user cannot override the configured value.



Contribution Margin Split

Contribution margin split is configurable on group, type, and item level. Configuration on a higher level propagates according to the inheritance rules in the system. Three ratios need to be configured;
  • Before n months
  • After n Months
  • Retained Contracts

Where n refers to the contract length as defined per service instance.