Defining Draw Compensation
Draw compensation lets you guarantee a minimum payment for salespeople assigned to this compensation plan. Draws are typically used to guarantee minimum payments to new salespeople, and to ensure uniformity in compensation payment. For example, a company that pays compensation every quarter may pay draws for the first two months of the quarter and then recover the draw amount in the third month.
For example, if your company guarantees salespeople on this compensation plan a minimum of $2,000 per pay period, you define the draw amount as $2,000. When you assign the compensation plan to each salesperson, you can customize the draw amount for each pay period.
Note: Draw compensation must be entered manually in Oracle Sales Compensation.
To define Draw compensation:
1. Open the Plan Elements window.
2. Name the plan element and provide a description.
3. For Active Periods, enter the start and end dates when this plan element can be assigned.
These dates must be within the dates of the compensation plan(s) the plan element is assigned to.
4. For Element Type, select Draw.
5. In the Draw field, specify the amount of compensation you want to guarantee for this compensation plan.
This amount specifies the draw amount on the guaranteed minimum payment for this compensation plan.
See Draw Compensation Example.
