Siebel Incentive Compensation Administration Guide > Incentive Compensation Calculations >

Compensation Calculation Features

After you review transactions and enter employee transactions, you are ready to calculate compensation. Typically, this involves three activities—exporting sales transactions, running the calculation engine, and releasing the run results.

First, you export transactions to the Calculation Workbook and Achievement Containers from the Transaction Workbook. You can also enter employee-specific transactions in the Employee Workbook if you have rules that pay bonuses on subjective performance measures such as scores for MBO, Customer Satisfaction, and so on.

Next, you run the calculation engine to determine the amount of compensation due to each employee for specified measure periods and compensation plans. After reviewing and verifying these calculations, you release the results.

NOTE:  If you plan to release results of a calculation run to end users, you must start the calculation run with the Archive for Release check box flag selected.

The calculation engine cycles through the plans, plan rules, and plan participants that you have selected for the current calculation run, and, based on transactions in the Calculation Workbook and the Employee Workbook, calculates the compensation earned by each employee. Calculated results are displayed in the Calculation Workbook.

The engine is a server process also known as the ICM Calculation Engine. You start a calculation run using Siebel Incentive Compensation Tracking screen's Calculation Runs view.

Calculation Run Tracks Cap and Draw Balances

Incentive Compensation tracks cap and draw balances from one Calculation Run to the next. Some calculation runs depend on other calculation runs because the ending balance of one run is used as the beginning balance for the next run. For this reason, the calculation engine tracks cap usage and draw balances to avoid conflicts.

For example, if two administrators each create and execute a calculation run for the same period and the same participant, both runs will use the same ending balances from the previous period. When the first administrator releases the run, the other run may not be released because the ending balances have changed. Similarly, if a user replaces a calculation run with a new run, all runs that were dependant on the original calculation run would become unreleasable because the cap and draw balances would not be valid. In some cases, this situation may force the administrator to rerun and rerelease additional calculation runs to correct the balances.

The best practice when replacing previous calculation runs is to execute and release a run for each period in sequence from the earliest necessary period to the current period. This practice verifies that both the YTD earnings values for each period as well as the draw and cap calculations and balances are correct for each period. This is only applicable when users are not using the YTD calculation run feature.

Calculation Run YTD Flag

Non-Year to Date calculation runs only include plan rules with a measure period type that matches the calculation run period type, and a plan rule effective period that is a superset of the calculation run period. A YTD calculation run includes all of the same plan rules as well as plan rules that have a matching measure period type whose plan rule effective period may or may not be a superset of the calculation run period. For example, a plan rule that is effective only for Q1 would be included in the Q4 YTD run, but not in a Q4 Non-YTD run.

Calculation Run Replacement

The Calculation Run Replacement feature allows you to replace an already released or visible calculation run with another run. The original run is not deleted but is marked as replaced. Earnings records in the Employee Balances are replaced with the results of the new calculation run.

A new calculation run replacement has the following restrictions:

For more information, see Recalculating Compensation.

Calculation Run Plans

Calculation run plans are associated with the specific calculation run rather than globally to all runs. In addition, the list of calculation run plans persists.

You can add or remove plans from a calculation run, so that calculation is performed for a subset of the of the company's plans. After a calculation run is released, the calculation run plans, plan rules, and the plan participants become read-only. For more information, see Selecting a Plan for a Calculation Run and Excluding a Compensation Plan.

Calculation Run Plan Rules and Run Plan Participants

Using the Calculation Run Plan Rules and Calculation Run Plan Participants views, you can add rules and participants to the Calculation Run Plan. For more information, see Adding a Calculation Run Plan Rule and Adding a Calculation Plan Participant.

Calculation Run Archiving

Calculation runs can be archived to create a secure, encrypted text file for each participant associated with the run. Administrators and employees can access the archived text files to view the details of the compensation plans used in the calculation run for each participant.

The calculation engine creates archive files that match the plan data used in compensation computations. If you change the plan data between executions, and then release the results, the archive still matches the data used to compute the compensation. For more information, see Archiving Calculation Run Data for Release and Archiving Compensation Plan Data.


 Siebel Incentive Compensation Administration Guide 
 Published: 18 April 2003