Talenture RS offers comprehensive Financial functionality for recruiting agencies to handle client billing, invoice generation, collection and revenue tracking.
In this article we will cover defining rules for charging commission, linking rules to Jobs, performing revenue generation actions and reports to track revenue generation.
Invoicing is embedded into Talenture RS as part of full recruitment workflow for a job. Users with Financial permissions - typically accounting personnel - are given access to these features.
1.1 Financial Arrangements Between Agencies and Clients
Staffing agencies typically charge commission as a percentage of the Cost to Company (CTC) of a placed candidate, fixed rate etc.
a. Common Commission Arrangements
- Percentage of CTC: For example, 8.33% of the CTC on which the candidate is placed.
- Fixed Amount: An agency may charge a fixed amount for each placement done such as Rs. 50,000/- for each placement.
- Slab-based: Agencies may have different percentage or fixed amount slabs based on the position level, experience or CTC brackets. For e.g. an agency may charge 8.33% of CTC for an entry level position while the next slab may be 12.5% for a middle level position and so on.
Note that additionally prevailing tax rates would need to be applied on the commission amount to arrive at the total amount.
1.2 Configuring and Using Invoicing in Talenture RS
Following are the steps to configure invoicing:
a. Define Commission Rules: Define Commission Rules based on which revenue calculation is done. These rules are defined at the client level in the Client Detail Screen.
Rules can be of the following types:
- Fixed/flat rate or percentage of CTC on which the placement is done. For e.g. a fixed amount such as $2000 or percentage such as 12.5 % of CTC etc.
- Slab-based rates – varying fixed or percentage rates based on position level/band, CTC or experience range.
For e.g. you can define 3 different rules with rates of 8%, 12.5 % and 15 % of CTC for junior, middle and senior level positions respectively.
- You can define multiple commission rules for the same client.
[Screenshot of ‘Commission Rule’ definition screen]
b. Define Invoicing Options for the Client: This includes the invoice format and lock-in period (if any).
You can set any of the following invoicing formats for each client:
- Cumulative – Single consolidated invoice for all vacancies filled for a job.
- One Invoice per Candidate – Separate invoice for each vacancy filled for a job.
In some cases a post-joining lock-in period would apply, for e.g. invoice may be raised after a specific duration such as 1 month, a quarter etc. after the actual joining of the candidate.
- You can set the lock-in period in days from the ‘Allow Invoicing’ drop-down available in the Client detail screen.
c. Attach Rule to a Job & Assign Financial Role: After you’ve defined commission rules for a client, you need to link the applicable commission rule to each Job that you create for the client and assign a user to the ‘Financial’ role.
To do this, follow these steps,
- In the ‘New Job’ screen, on the ‘General’ tab, select the applicable commission rule from the Commission Rule drop-down as shown in screenshot below:
- In the ‘Roles’ tab, select a team member in the ‘Financial’ role drop-down, This user will then be able to generate the invoice for candidates that are placed for the Job.
d. Create Invoice Template: You can configure templates based on a MS Excel format provided in the system. These are configured at the system level in the System Configuration module via a user login having administrative privileges.
The Invoice Template offers the following features:
- You can customize the available invoice format by including your company logo, contact details, changing the colour, fonts etc.
- The calculation formula for the invoice amount can also be modified directly in the MS Excel template to synchronize with changes in tax rates and other components.
- The invoice amount is generated independent of whatever currency you’ve selected in the System Configuration.
- The template dynamically generates invoice number, date, client & candidate information etc. You can add multiple invoice templates customized for separate clients/needs.
Refer to the following Help Center article to learn how to configure an Invoice Template: Configuring an Invoice Template [https://talenturers.zendesk.com/hc/en-us/articles/115001686969]
e. Revenue Actions: A revenue action in Talenture RS is a recruitment action performed on a candidate that results in revenue being posted based on commission rules. A revenue action will result into revenue generation eventually when an invoice is raised on the posted revenue and the invoice amount gets collected.
You need to perform the revenue action to trigger posting of revenue based on which you will raise the final invoice.
To initiate a revenue action,
- Mark a candidate as ‘Joined’ for a Job – at this point the commission rule gets applied and revenue is calculated automatically.
Once you’ve set a candidate status as ‘Joined’ for a Job you can view the revenue posted based on the action in the following view in your Workbench:
- My Recruiting->Targets and Revenue->Revenue Actions
f. Invoicing: Once a revenue action has been performed by team members a user in the ‘Financial’ role for Jobs can generate the invoice.
Note that you need to manually generate an invoice after revenue actions have been taken as follows:
- Navigate to the ‘My Recruiting->Invoices-Pending Generation’ view. This displays all placed candidates for whom invoice is to be generated.
- Select the candidates for whom to generate the invoice and use the ’Generate Invoice’ action available in the view. Select the Invoice Template to be used for generating the invoice and click OK as shown in screenshot below:
- The invoice will be generated and will be available in the 'Generated Invoices' view from where you can download the invoice in MS Excel and PDF formats.
Talenture RS provides dedicated invoice views in the Workbench to track and manage your invoicing process. Accounting persons within the team can access these for invoicing reports including:
- Pending Generation: Invoices still pending to be generated
- Generated Invoices: Shows generated invoices with collection status
- Cancelled Invoices: Invoices cancelled due to wrong figures, mistakes etc.
After the invoice has been generated you can perform the following post-generation steps:
- Download in MS Excel or PDF format to your computer – this can be printed and mailed.
- Email invoice directly to your client.
- Track payments on the invoice via the ‘Generated Invoices’ view. You can update each payment or “collection” done against an invoice till entire amount is received.
- Cancel invoice for e.g. in case of revised rates, mistakes in selection of commission rules etc.
g. Tracking Financial Stages in the Recruitment Workflow: You can use the Financial stages in the Job workflow to track invoicing status of candidates:
- Move candidates into Financial stage after joining
- Track subsequent invoicing steps such as invoice generation, dispatch and collection using status changes
h. Invoicing-related Reports: Talenture RS provides focused revenue & invoice reports views in the Reports module to track and manage your invoicing process. Accounting persons within the team can access these to track revenue generation and target achievements:
You can access the invoicing related reports from the following data views in the Reports module:
- Team Management->Manual Reports->Revenue Summary: This workbench node provides report views for analyzing your teams’ revenue achievement client-wise, target-wise and so on.
- Team Management->Manual Reports->Invoicing Reports: This workbench node provides the views to generate and manage your invoices.
Talenture RS fully enables invoicing to be integrated with your core recruitment process. Easily implement this using customizable invoice templates, commission rules and dedicated workbench views.
Finally, you can use the report views in the Reports module for easily managing invoice status, collections & revenue generation.
2. Related Resources