Previous  Next          Contents  Index  Navigation    Library

Draw Compensation Example

This type of plan element is typically used to ensure that new salespeople receive a minimum compensation for the first six months.

Draw Plan Element Example
Active Period JAN-97 to JUL-97
Interval Type Period
Draw $2,000

This plan element is specified for the first six months, once a month. Oracle Sales Compensation pays at least $2,000 during each pay period to the salespeople assigned to this plan and each period that this plan element is specified. If a salesperson earns only $1,500 in sales compensation and bonuses during this period, Oracle Sales Compensation pays a $500 draw--the difference between the earned compensation and the draw amount for this plan. If a salesperson earns more than $2,000 in sales compensation and bonuses, no draw is paid.

Draws defined are recoverable by default. Once a draw has been paid to a sales representative, Oracle Sales Compensation will try to recover the draw amount in a subsequent period, when the commission and bonus earned is greater than the minimum guaranteed payment or draw amount as defined for the period.

In the above example, if in JAN-97, the sales representative makes $1500.00, then $500.00 is paid on draw. If in FEB-97, the sales representative makes $800.00, then the system will show the draw to be recovered on $500.00, but will still give a draw of $1200.00 so that the minimum amount is paid, which is $1,200.00. The total draw to be recovered equals $1,700.00.

         Previous  Next          Contents  Index  Navigation    Library