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Margin Compensation Examples

The compensation examples employ the following syntax:

<Payment Type>:<Apply Txn>

The methods to use Margin compensation to calculate transactions are:

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

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

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

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

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

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

Applied Transaction Amount Percentage : Individually

This type of plan element is typically used to compensate sales representatives on margin percentage achieved on a sale. The sales representatives receive a percentage of the revenue that they earn for the company. This percentage is determined by the margin percentage achievement on the sale. Both margin and revenue have an affect on their compensation amount.

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

This plan element calculates the compensation for each transaction. Oracle Sales Compensation finds the appropriate rate in the Margin Percentage Rate Table based on the margin percentage on the transaction, and multiplies this rate by the transaction amount.

Calculation Formula    
       
Commission rate Determined by the tier in which the margin percentage is located in the Margin 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 compensate sales representatives on margin percentage achieved on sales. A fixed commission amount is determined by the margin percentage achieved on the sale.

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

This plan element calculates the compensation for each transaction. Oracle Sales Compensation looks up the margin percentage in the Margin Amount Rate Table, and finds the appropriate commission amount to be paid for that transaction.

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

   To calculate the commission for transaction 1000:

Look up the commission amount for the 5% margin percentage in the Margin Amount Rate Table.

The commission amount = $0 as determined by the 5% margin percentage, which appears in the first tier in the Margin Amount Rate Table.

   To calculate the commission for transaction 1001:

Look up the commission amount for the 12% margin percentage in the Margin Amount Rate Table.

The commission amount = $10 as determined by the 12% margin percentage, which appears in the second tier in the Margin Amount Rate Table.

Payment Amount Percentage : Individually

This type of plan element is typically used to compensate sales representatives on margin percentage achieved on a sale. The margin percentage determines the commission rate percentage to be applied. The commission earned by the sales representative is a percentage of payment or incentive quota defined.

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

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

Calculation Formula    
       
Commission rate Determined by the tier in which the margin percentage is located in the Margin 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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