Close Date

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What is Close Date?

Close date is the expected or actual date when a sales opportunity is won or lost. For open deals, it represents the projected closing date; for closed deals, it's the actual date the contract was signed. According to Gartner (2024), close date accuracy is the single most important factor for precise revenue forecasting.

Why Close Date Is Critical

Accurate close dates impact multiple business functions:

  • Forecasting: Revenue predictions depend on close date precision
  • Pipeline management: Identify deals at risk of slipping
  • Commission timing: Determines which period gets credit
  • Resource planning: Allocate implementation and support resources
  • Cash flow: Predict when revenue will be collected

According to Salesforce State of Sales (2024), teams with accurate close dates have 34% higher forecast precision than teams with unreliable dates.

Types of Close Dates

Type Description Use Case
Expected close date Projected date for open deals Pipeline and forecasting
Actual close date Date for closed deals Commission calculation
Commit date Date rep commits to Forecast categorization

Close Date and Commission

Close date determines which period the commission is credited to:

Example: Quarter Boundary

Close Date Commission Credited To Impact
December 31 Q4 Counts toward Q4 quota
January 1 Q1 (new year) Counts toward Q1 quota

This single day difference can significantly impact both quota attainment and bonus triggers.

Timing Policies

Policy Definition Use Case
Booking date Date deal is recorded as won Simple, immediate
Signature date Date contract was signed Enterprise sales
Effective date Contract start date Subscription businesses
Revenue recognition When revenue is booked Accounting alignment

Close Date in Forecasting

Forecast Categories

Deals are typically categorized by close date probability:

Category Definition Probability
Closed Deal is won 100%
Commit Rep commits to this period 90%+
Best Case Can close if everything goes well 50-70%
Pipeline Active but not committed 20-50%

Close Date Slip

When expected close dates push forward (slip), it affects forecast accuracy:

Push Rate = Deals pushed ÷ Total deals forecasted

  • Industry average: 20-40%
  • Target: Under 20%

According to SalesLoft (2024), teams with push rate under 20% have 28% higher quota attainment than teams with higher slip rates.

FAQ About Close Date

What defines "closed"?

It varies between companies: signed contract, received purchase order, first payment, or verbal acceptance. Define it clearly in your commission plan.

How do I improve close date accuracy?

Understand the buyer's timeline, identify blockers early, multi-thread to multiple contacts, update weekly, and be conservative in estimates.

What if close date falls on a holiday?

Establish clear rules for holidays and weekends. Typically the system timestamp counts, so make sure to update CRM before the period ends.

Manage Close Dates With Automation

Accurate close dates are the foundation for reliable forecasting and fair commission calculation. Manual processes lead to errors and disputes.

With Prowi, close dates sync automatically from your CRM, and commission period attribution happens according to your defined rules. Reps see exactly which period their deals count toward.