Discount Option Compensation Examples
The compensation examples employ the following syntax:
<Payment Type>:<Apply Txn>:<Accumulate On/Off>:
<Discount Option None/Payment/Quota>
The methods to use Discount Option compensation to calculate transactions are:
Applied Transaction Amount Percentage : Individually :
Accumulate Off : Discount Option = Payment
In this case, the discount works like Payment Uplift, in which only compensation payment is affected. The discount does not affect achievement towards quota.
|
| Interval Type
| Year
|
| Element Type
| Revenue Non Quota
|
| Apply Txn
| Individually
|
| Accumulate
| No
|
| Payment Type
| Applied Transaction Amount Percentage
|
| Discount Option
| Payment
|
There are two rate tables involved in calculating the compensation rate. The values used in these table are independent of each other. First, the standard compensation rate is obtained in the Standard Percentage Rate Table which uses revenue or quota achievement without taking discount into account. A discount rate is determined independently in the Discount Percentage Rate Table, which is based on the discount percentage. The final compensation rate is obtained by multiplying the discount rate with the standard compensation rate.
|
| Commission rate
| The standard rate x discount rate.
The standard rate is determined by the tier in which the transaction amount is located in the standard percentage rate table.
The discount rate is 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 commission for transaction 1000:
The standard rate = 5% as determined by the transaction amount of $1,000, which appears in the first tier in the Standard Percentage Rate Table.
The discount rate = 100% as determined by the discount percentage rate of 5%, which appears in the first tier of the Discount Percentage Rate Table.
3. Multiply the standard rate by the discount rate to obtain the final compensation rate.
The final compensation rate is: 5% x 100% = 5%.
4. Calculate the commission by multiplying the transaction amount of $1,000 by the final compensation rate.
The commission for transaction ID 1000 is: $1,000 x 5% = $50.
To calculate commission for transaction 1001:
The standard rate = 10% as determined by the transaction amount of $3,000, which appears in the second tier in the Standard Percentage Rate Table.
The discount rate = 80% as determined by the discount percentage of 12%, which appears in the second tier of the Discount Percentage Rate Table.
3. Multiply the standard rate by the discount rate to obtain the final compensation rate.
The final compensation rate is: 10% x 80% = 8%.
4. Calculate the commission by multiplying the transaction amount of $3,000 by the final compensation rate.
The commission for transaction ID 1000 is: $3,000 x 8% = $240.
Applied Transaction Amount Percentage : Individually :
Accumulate Off : Discount Option = Quota
In this case, the discount works like Quota Uplift, in which revenue achievement is effected, and compensation payment may also be affected.
|
| Interval Type
| Year
|
| Element Type
| Revenue Non Quota
|
| Apply Txn
| Individually
|
| Accumulate
| No
|
| Payment Type
| Applied Transaction Amount Percentage
|
| Discount Option
| Quota
|
There are two rate tables involved in calculating the compensation rate. The values used in these table are NOT independent of each other. First, the discount rate is obtained in the Discount Percentage Rate Table. Then the discount rate is multiplied by the revenue amount to affect the total revenue accumulation.
|
| Commission rate
| Determined by the tier in which the modified transaction amount (discount rate x transaction amount) appears in the standard percentage rate table.
The discount rate is determined by the tier in which the discount percentage is located in the discount percentage rate table.
The final commission rate is determined by the tier in which the modified transaction amount is located in the standard percentage rate table.
|
| Commission
| Commission rate x transaction amount.
|
To calculate commission for transaction 1000:
The discount rate = 100% as determined by the discount percentage of 5%, which appears in the first tier in the Discount Rate Table.
2. Multiply the transaction amount of $1,000 by the discount rate of 100%.
3. Look up the final rate of the modified transaction amount of $1,000 in the Standard Rate Table.
The final rate = 5% as determined by the modified transaction amount, which appears in the first tier of the Standard Rate Table.
4. Calculate the commission by multiplying the original transaction amount of $1,000 by the final compensation rate of 5%.
The commission for transaction ID 1000 is: $1,000 x 5% = $50.
To calculate commission for transaction 1001:
The discount rate = 80% as determined by the discount percentage of 12%, which appears in the second tier in the Discount Rate Table.
2. Multiply the transaction amount of $3,000 by the discount rate of 80%.
3. Look up the final rate for the modified transaction amount of $2,400 in the Standard Rate Table.
The final rate = 10% as determined by the modified transaction amount, which appears in the second tier of the Standard Rate Table.
4. Calculate the commission by multiplying the original transaction amount of $3,000 by the final compensation rate of 10%.
The commission for transaction ID 1001 is: $3,000 x 10% = $300.
