Bonus Chapter 1

Managing Partner Relationships

In This Chapter
Creating partner records
Giving partners access to pages in your account
Paying commissions or royalties to partners

M anaging partner relationships in NetSuite is much more than just

keeping a list of partner records with contact information. Partners
include companies such as distributors, value-added resellers (VARs), and
even retail stores. Dealers, wholesalers in short, anyone who sells your
products can be a partner and can get credit in one way or another for the
sales that they make on your behalf.

You can associate leads, prospects, and customers with partners, and
offer partner-exclusive coupon codes.
You can associate sales with partners to give credit to partners for
referrals or sales.
You can give partners limited access to your account for their independent
sales generation and pay them commissions accordingly.

You need a role of Marketing Manager or Marketing Administrator to perform

the tasks outlined in this chapter. Where indicated, some steps need to be
completed by your friend, the NetSuite Administrator.

Making a Beautiful Partnership

Your partner relationships are extremely valuable, and you need to take the
fullest advantage of them, including staying in constant contact and giving
them the access they need to generate leads and sales.

Just like customer records, you can track all of your activity and communication
with a partner on the partner record. Your partners can likewise track all
of their communication with customers that they work with, right on the
Customer record.

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 BC2 NetSuite For Dummies

You may want to enable these partner management features:

Partner Relationship Management: Enables partner records in your

account. This feature must be selected to enable all other features.
Partner Access: Allows partners to log in and manage leads, prospects,
customers, promotion codes, and subpartners, as well as view reports.
Advanced Partner Access: Allows partners to log in and access a full
NetSuite center with multiple tabs where they can manage campaigns,
customer service, opportunities, sales, and gift certificates.
Partner Commissions/Royalties: Allows you to pay commission to
partners based on the sales they generate.
Multi-Partner Management: Allows you to associate more than one
partner with a customer and transactions, which lets the customer use a
promotion code from any of these partners and allows split commissions
between the partners.

Administrators can enable most partner relationship management features

on the CRM tab of the Enable Features page (from the Setup tab menu,
choose CompanyEnable Features), as shown in Figure BC-1. The Partner
Access and Advanced Partner Access features are enabled on the Web
Presence tab.

The Advanced Partner Access feature is part of the Advanced Partner

Center module; Partner Commissions/Royalties part of the Incentive
Management module. If you dont see these options, you probably didnt buy
these modules for your account. Your NetSuite sales rep can help if youre
interested in using these features.

Figure BC-1:
You can
turn on most
features
involving
partners on
the CRM
tab of the
Enable
Features
page.

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 Bonus Chapter 1: Managing Partner Relationships BC3
Administrators follow the steps in this chapter, unless otherwise specified.

Creating partner records

Creating partner records is pretty easy in NetSuite. You can store as much or
as little information as needed, including but not limited to the following:

URL
Contact information
Past events or calls
Previous e-mail messages
Marketing cases
Marketing initiatives
Commission information

Using Quick Add

If you need to quickly create a record with a phone number and an e-mail
address, use Quick Add in the Direct List Editing feature, as shown in
Figure BC-2 and detailed in these steps:

1. From the Lists tab menu, choose RelationshipsPartners.

2. Click the Enable Editing link near the top of the list (if editing isnt
enabled).
Several fields open up at the bottom of the list.
3. Fill in these fields to add the partner to NetSuite:
Partner ID
Partner Code
Company Name
Phone
Email
(Partner ID and Partner Code are often both identical to company
name.)
4. Click the Save button.

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 BC4 NetSuite For Dummies

Figure BC-2:
Add
partners
fast using
Direct List
Editing with
the Quick
Add row.

Creating or editing a partner record

To create or edit a partner record:

1. On the Lists tab menu choose RelationshipsPartnersNew.

The partner record appears.
2. Enter contact information for the partner.
That data may include the company name, phone number, e-mail
address, and Web address.
The partner code automatically displays the name you enter for the
partner. The code associates transactions and customers with this
partner. You can edit it as needed on this record.
3. Go to the Contacts tab of the General tab.
4. Under Contacts, enter each contact that you use to communicate with
this partner.
You can choose partner contacts when scheduling events or other
activities and when creating a case. Individual contacts can also have a
login if you provide access to the Partner Center or Advanced Partner
Center.
Under Calls, Tasks, Events, User Notes, and Files, you can add activities,
notes, documents, or images regarding this partner while you work with
them.
5. On the Info tab, enter financial information such as tax data.
6. On the Address tab, enter the partners physical address.
7. On the Marketing tab, select and add promotion codes that should be
associated with the partner for sales.

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 Bonus Chapter 1: Managing Partner Relationships BC5
Select New in the Promotion Code field to create new promo codes for
this partner in a new window.
8. (Optional) On the Access tab, select the Give Access check box.
This allows this partner to log in to your NetSuite account with the role
you select in the Role field (Partner Center or Advanced Partner Center).
If you give partners access to your NetSuite account, enter and confirm
a password for the partner. Select the Require Password Change on First
Login check box for security reasons. Really, its a good idea to check
this box anyway so partners can easily change their password to something
they can remember.
9. On the Commission tab, select the Eligible for Commission check box.
The Commission tab appears only if the Incentive Management module
is installed in your account. Eligible for Commission allows this partner
commission on sales hes associated with.
10. Click the Save button.

The partner is now available for selection on transactions and on customer

records. You can view this partners reports and activities with customers
under the Sales, Sales Orders, and Marketing headings on the Reports tab
menu.

When you return to view a partner record from the Partners list, you can
click the Show Activity button to see a chronological, compiled list of all
tasks, calls, and events with the partner, as shown in Figure BC-3. On the
Messages tab (under the General tab), click the View History button to see
all messages exchanged with the partner. You can add activities, messages,
cases, user notes, and files even when the record is in View-Only mode.

Figure BC-3:
Click the
Show
Activity
button on
partner
records
to see all
events,
tasks,
and calls
regarding
the partner.

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 BC6 NetSuite For Dummies

Partner fields, partner codes, and

promotion codes, oh my!
With a Partner field on customer records, a Partner Code field on partner
records, and a Partners tab on promotion code records, it can get a bit
confusing as to how everything is linked. Were here to help.

The Partner field shown in Figure BC-4 appears on lead, prospect, and
customer records; the field links a partner to a customer. This usually
denotes one or more of the following:

That partner is responsible for the relationship with that customer.

The partner brought in the customer as a lead.
Both.

When a partner is associated with a customer, all sales placed by that

customer are credited to the partner in the Sales by Partner and Sales Orders
by Partner reports.

Figure BC-4:
The Partner
drop-down
list on
customer
records
links
partners to
customers
and sales.

Partner codes are used for one reason: Theyre added to a URL for an online
customer form. Leads who submit the form then automatically have the
partner associated with the lead record created in your account. For example,
if a partners code is PARTNERONE, you or the partner use the URL www.
onlinecustomerform.com?partner=PARTNERONE to link to an online form. All
leads who click the link and fill out information in NetSuite have that partner
selected on the lead record.

Promotion codes are mostly used to offer discounts and sales to customers,
but they can limit a discount to customers of a specific partner. If you ask a
person with the Marketing Manager role to follow these steps, only customers
with that partner selected on their respective records can use the promotion
code:

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 Bonus Chapter 1: Managing Partner Relationships BC7
1. From the Campaigns tab menu choose MarketingPromotion Codes.
2. Edit the promotion code you want to associate with partners.
3. Make sure the Available to All Customers check box is cleared.
4. Click Save.

You can see the success of a promotion code effort using Sales by Promotion
Code reports under the Sales and Sales Orders headings on the Reports tab.

Giving Partners Access to NetSuite

Your partners are your selling soldiers in the field. The more you enable and
delegate to these troops, the better they can bring in leads and sales. Giving
them access to the records and transactions that theyre associated with in
your account makes a strong, trusting relationship even better. Plus, that
way you always know that youre working with the same information.

Giving partners access is also key to tracking their success. Instead of you
entering records, transactions, or activities between partners and their
customers, they can take care of all these things in the Partner Center, while
your partner reports activities and sales stay up to date.

You can give partners limited access to your NetSuite account by assigning
them one of the roles explained in Table BC-1.

Table BC-1 Differences Between the Partner Center

and the Advanced Partner Center
Center Description In It Partners Requires
Can
Partner Similar Access lead, The Partner Access feature,
Center to the prospect, and which has very limited
Customer customer customization options.
Center. Has records where
one tab. theyre the
selected part-
ner. View, edit,
and create
subpartners
and promotion
codes and
view relevant
reports.
(continued)

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 BC8 NetSuite For Dummies

Table BC-1 (continued)

Center Description In It Partners Requires
Can
Advanced Similar to Access The Advanced Partner
Partner the Sales Activities, Center feature, which
Center Center. Customers, is fully customizable.
Similar Cases, Add or remove access
to what Reports, Setup, to records and transac-
employees and Support tions at SetupUsers/
have access tabs (defaults). RolesManage Roles.
to and useful
for very
active part-
ners who
need more
access than
the Partner
Center pro-
vides. Has
several tabs.

You can attach contacts for individuals who work for this partner on the
General tab. Each contact can have an individual login to the Partner Center
you choose to assign, but you need to select and attach each contact before
assigning access to do so.

To give a partner access:

1. From the Lists tab menu choose RelationshipsPartners.

The Partners list appears.
2. Click Edit next to the partner you want to give access to.
3. On the Access tab, select the Give Access check box.
4. Choose one of these options in the Role field:
Partner Center
Advanced Partner Center
5. Select the Send Notification E-mail check box.
This e-mail lets the partner know she has login access but for security
reasons doesnt contain the password you designate.

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 Bonus Chapter 1: Managing Partner Relationships BC9
6. Type a password for the partner in the Password and Confirm
Password fields.
Passwords in NetSuite can contain special characters or symbols. They
must be at least six characters and contain at least one number or
special character/symbol.
7. Select the Require Password Change on First Login check box.
Requiring a password change on first login makes the partner change
the password the first time he logs in. That way the password is unique
and memorable to him. It also increases your security in general.
8. (Optional) Select the Can Give Login Access to Subpartners check box.
This allows the partner to create subpartners and gives subpartners
access to the same Partner Center.
9. (Optional) Select the Access check box next to each contact that
should have an individual login.
Contacts must be added on the records General tab to show here.
10. Click the Save button.

Partners can now access your account using the center you assigned.
Partners have a dashboard similar to the one you see, with settings on the
left and customizable portlets. Partners also have access to the Help link,
where they can find information on customizing the dashboard and using the
pages and records youve given them access to.

Kicking It with Commissions

You can reward partners for all their hard work by giving them a commission
on sales that come from customers theyve brought in. Partner commissions
are paid similarly to employee commissions.

To pay partner commissions, you must do the following:

Create a commission schedule.

Create a commission plan.

A vendor record is automatically created when you mark a partner eligible

for commission. Any changes you then make to the partner record are
updated on this automatically created vendor record, so you dont have to
worry about changing information (such as addresses) in two places. The
vendor record is only used for the ability to write a check to the partner.

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Making partners eligible
to receive commission
You can choose to set up some partners for commission and leave others
ineligible. This helps keep your reports and commission pages clear of those
partners that shouldnt receive commissions.

To pay partners commission, you must have the Partner Royalties/Commissions

feature enabled. Administrators can enable this feature from the Setup tab
menu by choosing CompanyEnable Features.

To set up partners for commission:

1. From the Lists tab menu, choose RelationshipsPartners.

The Partners list appears.
2. Click Edit next to a partner who should receive commission.
3. On the Commission tab, select the Eligible for Commission check box
shown in Figure BC-5.
4. Click the Save button.
This creates an identical vendor record for the partner so you can write
checks to the partner. Next, you set up how commissions are paid to
partners.
You can base partner commissions on different formulas by setting up
separate schedules and plans, which we detail in the section that follows.

Figure BC-5:
Mark part-
ners eligible
for commis-
sion on the
Commission
tab of
Partner
records.

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 Bonus Chapter 1: Managing Partner Relationships BC11
Creating commission schedules
for partners
When a commission schedule (a way of calculating commission) and a
commission plan (which groups schedules) are in place, you can create
additional schedules for alternate methods of paying commissions, or you
can edit your commission plan to group schedules together and assign them
to partners for payment.

Commission schedules define your methods for paying commission to a

partner. For example, you may create a schedule for paying some partners
a flat rate of 5-percent per sale total and create another schedule for paying
other partners a linear rate of 10 percent of the profit for orders equal to or
under $100 and 15 percent of the profit for orders over $100.

1. On the Lists tab, under Commissions, choose New (next to Partner

Schedules).
The Partner Commission Schedule page appears, as shown in Figure BC-6.
You set the formula for how much commission is paid on commission
schedules. You can set up more than one if you pay different partners at
different rates.
2. Type a name for the schedule.
3. In the Commission On field, select what you want to pay commission on:
Sales Amount
Alternate Sales Amount
Quantity
Inventory Profitability
Inventory Total Profit
4. In the Eligible Amount field, choose when commission is eligible for
payout.
For example, you may pay 10 percent when the order is billed and 90
percent when the order is paid.
5. In the Calculation Scale field, choose how commission should be
calculated:
Flat Rate: Paid at a flat dollar amount or percentage.
Marginal: Paid by bracket per sale. You set up a range of values for
sales that should receive commissions on the bottom of the page.
Linear: Paid by bracket per total amount reached.
The term bracket refers to a range of dollar values. You may be familiar
with tax brackets. Commission brackets are a lot nicer.

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BC12 NetSuite For Dummies
6. In the Rate field, choose how the calculation is made:
Dollar/currency amount
Percentage
7. Select the Automatically Create Plan check box.
This option creates a plan that includes this schedule.
Commission plans are required to pay commission. You can assign more
than one schedule to a plan, so future schedules you create for the same
plan should have this check box cleared. You assign this method of
payment to partners on the Plan record.
8. Click the Save button.

Figure BC-6:
Create a
commission
schedule to
define how
you will pay
partners.

Creating and assigning commission plans

On commission plans, you can combine commission schedules and assign
them to partners. Combining schedules in one plan allows you to pay the
same partners in different ways. For example, you may want to reward
partners with a flat rate of all sales but also reward them for sales from new
customers or sales or certain items. Setting up a plan and assigning partners
to the plan are key steps in making sure partners get commission.

Partners can be assigned to only one plan at a time, and they must be
assigned to a plan to receive payment.

Heres how you set up commission plans:

1. From the Lists tab menu choose CommissionsPartner PlansNew.

The New Partner Commission Plan page opens.
2. Type a plan name in the Name field.
3. Click the Add Schedules to Plan tab.

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4. From the Schedule drop-down list, select the schedules you want to
combine.
5. Click the Assign Plan to Partners tab.
6. From the Partners drop-down list, select the partners you want to
assign those schedules to.
7. Click the Save button.

Cutting the check

After you set up schedules and plans and assign your plans to partners, com-
mission amounts calculate on sales. Some steps you still must follow:

1. Authorize commissions at TransactionsCommissionAuthorize

Partner Commissions.
Someone with a NetSuite role that has the Partner Commission
Transaction permission, such as the Sales Manager or Sales
Administrator, has access to this page.
2. Approve partner commissions at TransactionsCommissionsApprove
Partner Commissions.
If the preference that requires accounting approval for partner
commissions is enabled at SetupSalesCommissions, an Accountant
or Administrator must approve each commission payment before a
check can be written. Payments show up for accounting approval after
management authorizes them.
3. Cut a partner a check at TransactionsBankWrite Check.

Handling Customers with

Multiple Partners
We mean customers associated with multiple business partners, of course.
That other stuff is just none of our business.

NetSuites Multi-Partner Management feature allows partners to work as

teams when building leads and sales. Instead of having only one partner
associated with a customer and receiving all the credit for that customers
sales, another partner down the road can encourage the same customer to
buy. The Multi-Partner Management feature allows you to keep both partners
on the customer record (perhaps one at 20 percent and one at 80 percent).
By default, each partner would receive that percentage of credit for the
customers sales.

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If you also use the Partner Royalties/Commission feature, you can pay
partners split commission.

Managing multiple partners also means that you can adjust which partner
receives the most credit on a transaction. In the preceding example, even
though one partner has only 20 percent by default on the customer record,
that partner may have been solely responsible for a particular sale. You can
change the percentage for that partner to any percentage on the sales order.

By default, partner credit must add up to 100 percent on a Transaction or

Customer record. However, you can use a trick to pay more than 100 percent
of the commission instead of splitting the commission. Do this by creating a
dummy partner record used only for adjustments. Whenever you need to go
over 100 percent on a record or transaction, you assign the amount over 100
percent to the adjustment Partner record.

Follow these steps to create a dummy record to use for adjustments:

1. From the Setup tab menu choose SalesCRM ListsNew.

The Add to CRM Lists page opens.
2. Click the Partner Category/Role link.
Next, you create a partner category for your dummy record.
3. Type Adjustment in the Partner Category/Role field.
4. Click the Save button.
Next, you create your dummy record for adjustments.
5. On the Lists tab, under Relationships, click New (next to Partners).
6. Type Adjustment Partner in the Company Name field.
7. Select the Info tab.
8. In the Category field, select the Adjustment category you created in
Step 3.

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