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You can create compensation plans that use the calculation of one plan rule within another plan rule. The first performance measure of one plan rule provides the calculation for a second performance measure defined in the other plan rule. This allows you to calculate compensation using two plan rules with different attributes.
For example, you want to pay a sales manager a percentage of the revenue for each deal based on that manager's group quota achievement. Compensation is calculated by combining the percentage of quota that the group has achieved and the revenue of each deal.
Table 22 illustrates this example. If deal revenue is $0-100 and the percentage quota achieved is 70-100%, then the representative gets 5% of the deal.
A compensation plan for this example might include two plans, the Sales Representative Plan, and the Sales Managers Plan. The output of quota achievement is used as the input for revenue commission. Each rule has different attributes:
You define a second performance measure on the plan rule that receives the calculation, in this case, Total Revenue Commission. The second performance measure must be the same as the first performance measure of the plan rule providing the calculation (Total Revenue Commission).
After you associate your rules with your plan, you can customize rate table entries for this plan rule without affecting the rate table of the rule. Using the example, you define a rate table for the Revenue Commission plan rule.
NOTE: If both plan rules result in payout, then you must create rate tables for both. If only one of the plan rules (for example, the Revenue Commission plan rule) results in payout, then only that plan rule needs a rate table.
Finally, you link the Quota Achievement plan rule with the Total Revenue Commission plan rule. The attributes of the Quota Achievement plan rule provide the attributes for the second performance measure of the Total Revenue Commission plan rule.
Using the previous example, if a sales representative achieves $360 of the $400 quota attainment (90%), Table 23 shows the payout (using a sample rate).
NOTE: The Quota Target is used to calculate attainment. For example, BSR (%Quota) is linked to the Commission (Revenue) rule. The Commission (Revenue) rule is the primary rule. Although both rules have quota targets, the BSR rule quota is used to calculate attainment.
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