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   To define a plan element:

1. Navigate to the Plan Elements window.

You can open the Plan Elements window by choosing Plan Elements from the Compensation Plans menu or by choosing Element Details from the Compensation Plans Workbench window.

2. Name the plan element and provide a description.

In the Name field, provide a name for the plan element. When you build a compensation plan (as explained in Defining a Compensation Plan), you assign one or more plan elements to the plan by name. Thus, consider defining a name by job title or area of sales you are compensating. For example, Global Computers enters the name "DIRECT PRO PC" for the plan element for field salespeople that sell the company's line of PCs.

In the Description field, enter the purpose of the plan elements you are defining.

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 Interval Type, choose the type of time interval for which this plan element is defined:

Period: The quota and payment targets are defined on a period basis.

Quarter: The quota and payment targets are defined on a quarterly basis.

Year: The quota and payment targets are defined on a yearly basis.

5. In the Element Information region, choose the Element Type from the alternate list.

The Element Type specifies how the compensation is calculated for the plan element:

Revenue Quota: Compensation is calculated based on the percentage of revenue quota the salesperson has achieved. (See Defining Revenue Quota Compensation.)

Revenue Non Quota: Compensation is calculated based on the amount of revenue the salesperson has earned. (See Defining Revenue Non Quota Compensation.)

Draw: A minimum compensation is guaranteed during the effective plan element period. (See Defining Draw Compensation.)

Manual: Compensation is a fixed bonus amount you specify in the Payment Worksheet window. (See Defining Manual Compensation.)

Unit Quota: Compensation is calculated on the percentage of unit quota the salesperson achieved. (See Defining Unit Quota Compensation.)

Unit Non Quota: Compensation is calculated based on the number of units the salesperson has sold. (See Defining Unit Non Quota Compensation.)

Discount: Compensation is calculated solely based on the discount percentage given on a sale. (See Defining Discount Compensation.)

Margin: Compensation is calculated based on the margin percentage earned on a sale. (See Defining Margin Compensation.)

6. For Revenue Quota, Revenue Non Quota, Unit Quota, Unit Non Quota, Discount, and Margin plan elements, select a rate table. (See Defining Compensation Rates).

Oracle Sales Compensation measures a salesperson's performance, or achievement, against the quota, revenue, units, discount percentage, margin percentage, or qualitative goals. The rate table pairs ranges of achievement, or brackets, with compensation rates to be applied during compensation calculation.

7. For Revenue Quota, Revenue Non Quota, Unit Quota, Unit Non Quota, Discount, and Margin plan elements, assign one or more revenue classes. (See Assigning Revenue Classes.)

As explained in Categorizing Your Sales Revenue, Oracle Sales Compensation uses revenue classes to determine whether the credit receiver on a compensation transaction is eligible for a compensation payment. If the revenue class on the compensation transaction matches a revenue class on the plan assigned to the salesperson or the revenue class is in the hierarchy of revenue classes assigned, the salesperson can receive compensation.

8. For Revenue Quota, Revenue Non Quota, Unit Quota, Unit Non Quota, Discount, and Margin plan elements, optionally define sales incentives--or uplifts--for each revenue class. (See Defining Sales Incentives.)

For each revenue class you can define incentives, called uplifts, that affect the salesperson's quota, payment, or both.

9. For Revenue Quota, Revenue Non Quota, Unit Quota, Unit Non Quota, Discount, and Margin plan elements, define transaction factors. (See Assigning Transaction Factors.)

You can control sales credit by assigning transaction factors, or multipliers on sales credit, to each type of source transaction you chose to collect. Oracle Sales Compensation uses these transaction factors to stage a compensation payment over the life of a sale--for example, paying part of the compensation when the invoice is posted, and another part when the cash payment is received.

10. In the Apply Txn (Transaction) field, select how you want to calculate the transaction from the list of values.

Individually: Each transaction is calculated individually. The commission can be viewed for each period in the subledger, or seen in the commission amount column of the transaction itself.

Grouped by Interval: Transactions are grouped and calculated once at the end of the interval. Only one rate table lookup is required for the interval, which uses the total accumulated amount. The commission can be viewed in the salesperson's subledger in the last period only, of each interval.

The commission amount cannot be seen on the transaction itself, because the commission is not calculated for each individual transaction.

Payment uplifts for the revenue classes are not used in the Grouped by Interval plan elements.

11. In the Quota field, enter a revenue amount or unit number for Revenue Quota or Unit Quota plan elements.

12. In the Payment Type field, select how the payment is calculated from the list of values.

Applied Transaction Amount Percentage: A percentage of the amount of the transaction(s) is paid for each level of revenue or unit achievement specified in the rate table.

Fixed Amount: A fixed dollar amount is paid.

Payment Amount Percentage: A percentage of the payment amount you specify in the Payment field is paid.

13. In the Rate Table field, select a rate table from the list of values where the From/To rate tier is percentage or amount, and the commission is either percentage or amount based on the Payment Type field:

Applied Transaction Amount Percentage: The commission rate is percentage.

Fixed Amount: The commission rate is amount.

Payment Amount Percentage: The commission rate is percentage.

14. Verify whether to check or uncheck the Accumulate check box.

The Accumulative check box lets you have the option of accumulating or not accumulating transaction amounts or units to determine the rate in the rate table. The Accumulate check box only applies to Revenue Non Quota and Unit Non Quota plan elements. When the Accumulate check box is checked, the rate table bracket is selected based on the total revenue achieved to date. When the Accumulate check box is unchecked, the rate table bracket is selected based on the revenue for each transaction. (See Defining Accumulative Commission.) All quota-based plan elements accumulate transaction amounts or units by definition.

15. Verify whether to check or uncheck the Split check box.

The Split check box lets you have the option of splitting or not splitting a percentage of the commission on a given sale. (See Defining Split and Non-Split Commission.)

Note: The Split check box and ITD check box cannot be checked at the same time.

16. In the Discount Option field, select an option from the list of values.

None: The discount percentage on the sale has no effect on the commission.

Payment: The discount percentage on the sale affects compensation payments only.

Quota: The discount percentage on the sale affects the achievement towards quota, and may affect compensation payment.

See Defining the Discount Option Field.

17. Verify whether to check or uncheck the ITD (Interval to Date) check box.

The ITD check box lets you define interval to date target and payment amounts, which are used to calculate the commission. See Defining Interval to Date Quota Target Calculation.

When you check the ITD check box, the Distribute Target button becomes active.

Note: The ITD check box and Split check box cannot be checked at the same time.

18. Choose the Distribute Target button.

The Interval to Date Targets window appears, which lets you define the target for each period and view the sum of the targets interval to date.

19. Save your work.