Entity hierarchy is set in the system in order to simulate the organization chart and setup the process flows and roles/privileges accordingly. This feature maps the complex sales and distribution relationships and enables the management to monitor the business performance at the granular level.
Multi Level hierarchies are maintained in the system for reports purpose.
The entity hierarchy is set to:
Maintain operational entity based (like reseller, business unit, service provider, multi-system operator, etc.) customer relationships.
Track sales, revenues, collections and hardware movement at each level in the hierarchy.
Define locations for operational entities for the purpose of enforcing access control to customer information and other related functionality.
Make a top level entity responsible for collecting payments from the hierarchy below.
Enforce credit limit on subscriptions for the main distributors restricting them from crossing the limit.
Maintain the confidentiality of business data by giving a hierarchy based data access to the operational entity. It enables the operational entity to restrict the data access within its domain.
Calculate commission of the sales personnel based on the employee hierarchy.
Enable the management to monitor geographical location wise sales performance. The management may like to compare the targets and achieved sales within a specific region for effective decision-making and business planning.
Generate various reports (revenue reports, collection reports, sales report etc.) salesman wise, distributor wise, region wise. These reports again help the management to evaluate the performance of the individual entity in the hierarchy.
For Example:
The sales hierarchy of an organization can have the following members:
Executive Vice President (EVP)
Senior Vice President (SVP)
Vice President (VP)
Senior Regional Manager (SRM)
Regional Manager (RM)
Area Sales Manager (ASM)
Territory Manager (TM)
The above hierarchy is maintained in the system to monitor the business performance smoothly at the granular level.