The sales reporting includes the key performance indicators of the sales force.
The Key Performance Indicators indicate whether or not the sales process is being operated effectively and achieves the results as set forth in sales planning. It should enable the sales managers to take timely corrective action deviate from projected values. It also allows senior management to evaluate the sales manager.
More "results related" than "process related" are information regarding the sales funnel and the hit rate.
Sales reporting can provide metrics for sales management compensation. Rewarding the best managers without accurate and reliable sales reports is not objective.
Source: Wiki
Also, sales reports are made for internal use for top management. If other divisions’ compensation plan depends on final results, it is needed to present results of sales department’s work to other departments.
Finally, sales reports are required for investors, partners and government, so the sales management system should have advanced reporting capabilities to satisfy the needs of different stakeholders.
