Bookshelf v7.5: Creating a Cap

Creating a Cap

A cap is an upper limit on the attainment or earnings that a sales representative can achieve for a given compensation plan, plan rule, or transaction. You can also personalize plan and plan rule caps. For more information on personalizing caps, see Process for Personalizing a Plan and Plan Rule Elements.

You can define a cap as a quantity, amount, or as a percentage. In addition, you can define payment and attainment caps as refundable or not refundable. You can create attainment caps at the plan rule level and payment caps at the plan and plan rule levels.

NOTE: The Cap Withheld amount is the amount of earnings that is withheld from a sales representative because of a cap. A Cap Withheld is added to any previous Cap Balance to compute the new Cap Balance.

You can create any of the following combinations of Cap and Rule types:

Aggregate rule with aggregate payment cap

Aggregate rule with aggregate attainment cap

Nonaggregate rule with non-aggregate payment cap

Nonaggregate rule with non-aggregate attainment cap

Nonaggregate rule with aggregate payment cap

Bonus other result rule with attainment cap

Bonus other result rule with payment cap

To create a stand-alone cap

From the application-level menu, choose View > Site Map > Incentive Compensation Administration > Caps.

In the Caps list, click New, and in the new record, enter the cap name in the Name field.

In the Type field, select Attainment or Payment from the drop-down list.

If you select Attainment, the Unit of Measure field is inactive. The other fields—Performance Measure, Frequency, Amount, Qty (quantity), Percent, and Comments, are blank and editable. In addition, the Refundable check box is cleared, and the Aggregate check box is selected.

If you selected an Attainment Type, select the Performance Measure from the drop-down list.

If you select Payment, the Performance Measure field is inactive. The other fields including Unit of Measure are blank and editable. In addition, the Refundable check box is cleared while the Aggregate check box is selected.

If you selected a Payment Type, choose the Unit of Measure from the drop-down list.

Complete the remaining fields.

The following table describes the fields.


Field	Comments
Aggregate	A check box indicating whether the cap is aggregated or not. If you do not want to aggregate the cap, clear the check box.
Amount	The cap amount (for example, $50,000). When you select Amount for payment cap, this is the dollar ($) earnings of the cap.
Comments	(Optional) A text field that you can use to enter comments.
Frequency	The frequency of an attainment or payment cap. Select Day, Week, Bi-weekly, Month, Quarter, Half-Year, or Year from the list.
Name	Name of the cap.
Percent	This value can be the percent attainment for any attainment cap. It is the percent of the target incentive for any payment caps.
Performance Measure	Performance measure for the cap. Possible values are Revenue, Units,%Quota,%Discount,%Margin, and so on.
Refundable	Check box indicating whether or not the cap is refundable.
Qty	Cap quantity (for example, 10).
Type	Attainment or Payment. An attainment cap sets an upper limit on a type of achievement. A payment cap sets an upper limit on the amount paid.
Unit of Measure	Cap unit of measure (for example, Amount). When you select Unit of Measure = % for a payment cap, this represents a percentage of the target incentive. The field is editable when a Payment cap type is selected.