Create Plan

** Data Streams need to be created before the creation and setup of Plan**
Step1 - Add Details

Plan Name 

Give your plan a clear, specific name. Best Practice is to use a naming convention (e.g., FY24_AE_EastCoast).

Payout Period 

Select how frequently this plan pays out commissions.

Step2 - Add Components

Components are like the building blocks of your commission plan. Each one tells the system how to calculate earnings in its own special way. Imagine them as the rules that decide how much money someone earns.

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For instance, think of ABC Tech Ltd. They pay their sales folks based on two things: the deals they close and the implementation fees in those contracts. These are separate "components" in their plan. One is about deal values, the other about implementation fees. So, each one has its own way of figuring out how much commission a salesperson gets.

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It's like having different sets of rules for different parts of their job. One rule says, "For every deal closed, give this much commission." Another says, "For every implementation fee, calculate commission this way."

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So, each component is like its own little world, making sure everyone gets paid fairly based on what they're bringing in.

Component Name

Think of this as the title of this earning or payout part. It's like naming a chapter in a book. For instance, "New Business Base Commission" could be one name. Make sure it's something easy to understand for everyone who'll see it, like your payees on their statements.

Applicable Period

This just decides how often we start fresh. Imagine it's like resetting a game level. So, if you pick 'Monthly', it means the targets or goals reset every month.

Data Stream For Earnings

Here, you're choosing where the info about deals or transactions (that decide earnings) comes from. It's like picking the pool where we fish out the numbers.

Data Stream For Payouts

If your payouts depend on certain events, like when invoices are made or revenue is collected, here's where you choose where those records are kept. Think of it as the place where the system looks to see if it's time to pay.

Earning Source and Payout Source

Once you've picked where the earnings and payouts come from, we need a special code or tag for each deal. It's like having a secret code for each transaction that links the earnings to the payouts, so everything matches up correctly.

• Earnings for this component are calculated on a deal by deal / sum of deals basis.
• deal by deal: Calculate earnings for each deal separately based on the rules you set up.

• Useful for complex plans with levels and bonuses tied to individual deals.
• Example: Deal1 earns $10, Deal2 earns $20, Deal3 earns $30, all counted individually.
  
  

• sum of deals: Calculate earnings as a lump sum for a batch of deals.

• Handy for cumulative components or bonuses.
• Example: Deals 1, 2, and 3 collectively earn $60.

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• The achievement for this component is based on an amount / a number / a score.

• an amount: Targets and achievements based on monetary values (e.g., closed deal amounts).
  For example, for a sales rep, the quota of new business deals is $10,000, so, his achievement will be driven by the closed deal amounts.
• a number: Targets and achievements based on quantity (e.g., meeting quotas). For example, a BDR has a quota for 10 meetings in a quarter, so, his achievement will be driven by the number of meetings.
• a score: Yet to be developed.
  
  

• The Achievement will be calculated on Earning Data Stream's <field_name> field.

Choose the field of your earning data stream which will be used to drive the achievement of this component. 

For example, for Sales AEs you may use deal_amounts, for BDRs you may use pipeline_generated etc.

• The component has / does not have a Target value.

• has: Component includes a set quota or target.
• does not have: No specific quota or target associated.
  
  

• This component is / is not primary.

• is: Component considered the main focus among all in the plan.
• Is not: Secondary component alongside other incentives or bonuses.

For example, a sales rep will be incentivized mainly on the basis of new business opportunities closed by him/her. Other than that, he may receive commission on other SPIFFs and Bonus components. In this case, the Base Commission will be the primary component of the plan.

• Enter % <__%> / No variable is allocated to the component.

• Enter %: Allocate a percentage of the total variable to this component.
  For Example, if your total variable is $1000 and this amount is to be allocated equally between two components, then you can declare 50% variable weightage here.
• No: No specific variable assigned.
  
  

• The component has / does not have tiers and accelerators.

• Think of it as achievement levels for sales reps. Each level comes with its own commission rate.
• When reps hit certain milestones compared to their targets, they unlock different commission rates.
• Let's say a rep closes $1200 in deals with a quota of $1000, reaching 120% of their goal.

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Here's how it works:

• First 50% of their target (0-50% achievement) gets them 2% commission on those deals.
• The next 50% (50-100% achievement) bumps it up to 3% on the deal amounts.
• Anything above 100% achievement gets them an even higher rate, 4% on those deals.
• In simpler terms, it's like getting 2% commission on the first $500 of deals, 3% on the next $500, and 4% on anything beyond that.
  
  

If you're calculating earnings on a deal-by-deal basis:

This gives you options to set up these achievement brackets where different commission rates kick in based on how well reps perform against their targets.

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• has: Different achievement levels with varied commission rates.
• does not have: No tiered commission structure.
  
  

• The Earnings for this component is in Organization Currency / User Currency

• This governs the currency that will be assigned to the final earning, calculated on the basis of the component’s earning rule.
• Organization Currency: Final earnings in the global currency recognized by your organization.
• User Currency: Final earnings in the user’s local currency recognized by your organization.

Step3: Create Rule

Each component has to have an earning and a payout rule

Earning Rules

These are rules or logic which specify the formula used to calculate earnings (much like any excel formula). It has various elements which are explained below:

When  : This condition is a filter for your deals. It helps decide if a deal should be included in certain calculations or considerations based on specific criteria.

• For instance, it might assess if a deal's "DealStage" is marked as "Closed Won" before considering it in a calculation like:
  WHEN DealStage == “Closed Won”
  You can layer multiple conditions using +AND or +OR to make the filtration more precise.
  
  

+GATE :Think of GATE as a checkpoint for earning rules. It sets a minimum achievement requirement that someone must meet to receive earnings based on that rule.

It’s like a threshold that a salesperson needs to fulfil to qualify for earning on the component.

If   : Much like an excel formula, IF rules are condition blocks for various logical purposes. The ways of using IF conditions differ as per your requirement.

• When you are creating a component that has tiers and accelerators, you will use IF conditions to define the lower and upper limits of those tiers.
  
  
• For example,
  IF Achievement= 0% to 50%  ;
  IF Achievement= 50% to 100% ;
  … and so on.
  
  
• When you are creating a component that does not have tiers and accelerators, you will use IF conditions to define achievement brackets (deciding cumulative commission rates), match data fields or add secondary filters after WHEN etc.
  For example,
  IF product_amount >= product_rack_rate  ;
  IF User Achievement % >=100  ;
  IF revenue_type == “New Business”  ;
  
  
• When you are creating a component that will use a sum of deals, you will use IF conditions to check for criterions, match different aggregations of values as per your policy.
  For example,
  IF SUM(implementation_fees) >= 5000  ;
  IF COUNT() >= 10  ;
  You can also create complex logics like:
  IF SUM(implementation_fees)/SUM(deal_amount) >= 0.5  ;
  (this condition will check if the total implementation fees included in contracts closed by a salesperson are more than 50% of those contracts’ ACV)
  
  
• You can also add multiple IF conditions by clicking on +AND or +OR.
  For example, once a particular set of WHEN and IF conditions is satisfied, the respective earning rule will be used to calculate incentive.
  
  

Then  : After defining the filter conditions, it is imperative for us to declare an action, or define an earning rule.

• Think of it as the formula on which the final calculation will be done.
  For example, your earning rule may say:
  Then Earnings = 2000 (in case of bonuses you give fixed amounts)
  Then Earnings = deal_amount * 0.02 (you may give a fixed percentage of deal value)
  Then Earnings = tier_deal_amount * base_rate (you may give commission based on targets and variables using base commissioning rate)
• A plan component’s rule can not be completed without an earning rule. After defining a WHEN condition, you may not define an IF rule based on your requirement.
  
  

+Condition : This can be used to add more IF conditions with their respective earning rules.

Payout Rules

• These rules decide how commission payments work according to when you pay them out in your commission policy.
  
  
• Payout rules are broadly classified into two methods, one of which is based on invoice or revenue collections:
  
  

1. Not Based on Invoice or Revenue Collection:
   
   

1. Earnings are Computed:
   Pay out commissions as earnings are calculated.
   
   
2. Component Applicable Period is Over:
   Pay out commissions once the period for the component ends.
   
   

1. Based on Invoice or Revenue Collection:
   
   

1. First Invoice is Collected:
   Pay out commissions when the first invoice or revenue record is received.
   
   
2. Record is processed and paid on a pro-rata basis:
   Pay out commissions proportionally based on the invoice or revenue collected against the total contract value.

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