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Guidelines for Creating a Compensation Plan Element

The following element type tables provide guidelines that will enable you to create a plan element that is applicable to your environment.

Element Type: Revenue Quota
For compensation based on... You can specify how to calculate the compensation...
  Select Apply Txn...
Each transaction calculated individually Individually
Grouped transactions calculated once at the end of the interval Grouped by Interval
  Select Payment Type...
The commission rate depends on the level of achievement towards revenue quota, which is multiplied by the revenue on the transaction Applied Transaction Amount Percentage
The commission amount depends on the level of achievement towards revenue quota Fixed Amount
The commission rate depends on the level of achievement towards revenue quota, which is multiplied by the payment amount specified in the Payment field Payment Amount Percentage
  Select Discount Option...
The discount percentage on the sale has no effect on the commission None
The discount percentage on the sale affects compensation payments only Payment
The discount percentage on the sale affects the achievement towards quota, and may affect compensation payment Quota
  Check/Uncheck Split Check Box...
If the transaction crosses more than one rate tier, split the units across the appropriate tier when the ITD check box is Off and the Payment Type is Applied Transaction Amount Percentage On
If the transaction crosses more than one rate tier, use the higher rate tier only Off

Element Type: Revenue Quota, continued
For compensation based on... You can specify how to calculate the compensation...
  Check/Uncheck ITD Check Box...
Quotas defined as interval to date quotas (QTD or YTD) when the Split check box is Off and the Payment Type is Applied Transaction Amount Percentage or Payment Amount Percentage On
Quotas defined for the period, quarter, or year Off

Element Type: Revenue Non Quota
For compensation based on... You can specify how to calculate the compensation...
  Check/Uncheck Accumulate Check Box...
Revenue on transaction accumulated throughout the interval On
Revenue on transaction not accumulated throughout the interval, each transaction is treated separately Off
  Select Apply Txn...
Each transaction calculated individually Individually
Grouped transactions calculated once at the end of the interval Grouped by Interval
  Select Payment Type...
Revenue accumulated throughout the interval or transaction revenue determines the commission rate, which is multiplied by the revenue on the transaction Applied Transaction Amount Percentage
Revenue accumulated throughout the interval or transaction revenue determines the commission amount Fixed Amount
Revenue accumulated throughout the interval or transaction revenue determines the commission rate, which is multiplied by the payment amount specified in the Payment field Payment Amount Percentage
  Check/Uncheck Split Check Box...
If the transaction crosses more than one rate tier, split the revenue across the appropriate tier when the Accumulate check box in On and the Payment Type is Applied Transaction Amount Percentage On
If the transaction crosses more than one rate tier, use the higher rate tier only Off
  Select Discount Option...
The discount percentage on the sale has no effect on the commission None
The discount percentage on the sale affects compensation payments only Payment
The discount percentage on the sale affects the achievement towards quota, and may affect compensation payment Quota

Element Type: Unit Quota
For compensation based on... You can specify how to calculate the compensation...
  Select Apply Txn...
Each transaction calculated individually Individually
Grouped transactions calculated once at the end of the interval Grouped by Interval
  Select Payment Type...
The commission rate depends on the level of achievement towards unit quota, which is multiplied by the revenue per unit times the number of units Applied Transaction Amount Percentage
The commission rate depends on the level of achievement towards unit quota, which is multiplied by the number of units Fixed Amount
The commission rate depends on the level of achievement towards unit quota, which is multiplied by the payment amount specified in the Payment field Payment Amount Percentage
  Check/Uncheck Split Check Box...
If the transaction crosses more than one rate tier, split the units across the appropriate tier when the ITD check box is Off and the Payment Type is Applied Transaction Amount Percentage On
If the transaction crosses more than one rate tier, use the higher rate tier only Off
  Check/Uncheck ITD Check Box...
Quotas defined as interval to date quotas (QTD or YTD) when the Split check box is Off and the Payment Type is Applied Transaction Amount Percentage On
Quotas defined for the period, quarter, or year Off

Element Type: Unit Non Quota
For compensation based on... You can specify how to calculate the compensation...
  Check/Uncheck Accumulate Check Box...
Units accumulated throughout the interval On
Units not accumulated throughout the interval Off
  Select Apply Txn...
Each transaction calculated individually Individually
Grouped transactions calculated once at the end of the interval Grouped by Interval
  Select Payment Type...
Units accumulated throughout the interval or units on the transaction determines the commission rate, which is multiplied by the revenue per unit times the number of units Applied Transaction Amount Percentage
Units accumulated throughout the interval or units on the transaction determines the commission rate, which is multiplied by the number of units Fixed Amount
Units accumulated throughout the interval or units on the transaction determines the commission rate, which is multiplied by the payment amount specified in the Payment field Payment Amount Percentage
  Check/Uncheck Split Check Box...
If the transaction crosses more than one rate tier, split the revenue across the appropriate tier when the Accumulate check box is On and the Payment Type is Applied transaction Amount Percentage On
If the transaction crosses more than one rate tier, use the higher rate tier only Off

Element Type: Discount
For compensation based on... You can specify how to calculate the compensation...
  Select Apply Txn...
Each transaction calculated individually Individually
  Select Payment Type...
Percentage of the amount of transaction paid for each level of revenue or amount achievement Applied Transaction Amount Percentage
Fixed dollar amount Fixed Amount
Percentage of the payment amount specified in the Payment field Payment Amount Percentage

Element Type: Margin
For compensation based on... You can specify how to calculate the compensation...
  Select Apply Txn...
Each transaction calculated individually Individually
  Select Payment Type...
Percentage of the amount of transaction paid for each level of revenue or amount achievement Applied Transaction Amount Percentage
Fixed dollar amount Fixed Amount
Percentage of the payment amount specified in the Payment field Payment Amount Percentage


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