How is the Actual/Quota Variance calculated for a sales representative?

The Actual/Quota Variance for a sales representative is calculated by dividing the sum of the quota by the actual closed sales. This calculation allows for a clear comparison of how the sales representative performed against their sales targets. When the quota is set, it represents the expected performance level, while actual closed sales reflect the performance achieved. By calculating this ratio, you can assess whether the sales representative met, exceeded, or fell short of their sales goals, allowing for better performance evaluation and strategic planning.

This method emphasizes the relationship between sales activity (actual closed sales) and performance expectations (quota), assisting management in understanding productivity and effectiveness. It also helps in identifying trends over time that can inform future sales strategies or adjustments to quotas.