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Discount Compensation Examples

The compensation examples employ the following syntax:

<Payment Type>:<Apply Txn>

The methods to use Discount compensation to calculate transactions are:

The Sales Activity table is used to calculate transactions for these methods.

Sales Activity
Transaction ID Transaction Amount Discount Percent
1000 $1,000 5%
1001 $3,000 12%

The Discount Percentage Rate Table is used to calculate the commission rate for the following payment types:

Discount Percentage Rate Table
Tier Commission
Percent Percent
From % To % %
0 10 5
10 100 3

The Discount Amount Rate Table is used to calculate the commission amount for the fixed amount payment type.

Discount Amount Rate Table
Tier Commission
Percent  
From % To % Amount
0 10 10.00
10 100 00.00

Applied Transaction Amount Percentage : Individually

This plan element is typically used to discourage sales representatives from giving a large discount percentage to customers while still having their focus to bring in revenue.

Discount Plan Element Example 1
Active Periods JAN-97 to DEC-97
Payment Type Applied Transaction Amount Percentage
Rate Table Discount Percentage

This plan element calculates the compensation for each transaction. The commission rate is determined by the discount percentage. This rate is then applied to the revenue or transaction amount to determine the commission. For each sales transaction, Oracle Sales Compensation determines the discount percentage for each transaction, finds the appropriate tier in the Discount Rate Table, and and multiplies this rate by the transaction amount to derive the commission.

Calculation Formula
       
Commission rate Determined by the tier in which the discount percentage is located in the Discount Percentage Rate Table.
Commission Commission rate x transaction amount

   To calculate the commission for transaction 1000:

   To calculate the commission for transaction 1001:

Fixed Amount : Individually

This type of plan element is typically used to provide a fixed commission amount for each level of discount percentage achieved on a sale.

Discount Plan Element Example 2
Active Periods JAN-97 to DEC-97
Payment Type Fixed Amount
Rate Table Discount Amount

This plan element calculates the compensation for each transaction. Oracle Sales Compensation determines the discount percentage on each transaction, finds the appropriate tier in the Discount Rate Table to derive the commission amount.

Calculation Formula
       
Commission rate Determined by the tier in which the discount percentage is located in the Discount Amount Rate Table.
Commission Commission amount.

   To calculate the commission for transaction 1000:

Look up the commission amount for the 5% discount percentage in the Discount Amount Rate Table.

The commission = $10 as determined by the 5% discount percentage, which appears in the first tier of the Discount Amount Rate Table.

   To calculate the commission for transaction 1001:

Look up the commission amount for the 12% discount percentage in the Discount Amount Rate Table.

The commission amount = $0 as determined by the 12% discount percentage, which appears in the second tier of the Discount Amount Rate Table.

Payment Amount Percentage : Individually

This type of plan element is typically used to compensate sales representatives on a discount percentage achieved on a sale. The commission will be a percentage of a payment or incentive quota defined.

Discount Plan Element Example 3
Active Periods JAN-97 to DEC-97
Payment Type Payment Amount Percentage
Payment $2,000.00
Rate Table Discount Percentage

This plan element calculates the compensation for each transaction. Oracle Sales Compensation calculates the discount percentage for each transaction, finds the appropriate tier in the Discount Percentage Rate Table and multiplies this rate by the payment amount to derive the commission.

Calculation Formula
       
Commission rate Determined by the tier in which the discount percentage is located in the Discount Percentage Rate Table.
Commission Commission rate x payment amount.

   To calculate the commission for transaction 1000:

   To calculate the commission for transaction 1001:


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