Advantages of Trees

After you've defined groups, attach them to a Variable Compensation tree. Create any number of group trees and use any group ID in multiple trees. Define a tree with a single group ID or multiple group IDs. The tree structure enables you to arrange your groups in a hierarchy that shows parent-child relationships. Use as many nodes on the tree as you want, but the maximum number of levels is 12. Define all parent and child groups separately in Group Build pages.

With hierarchical trees, you can administer variable compensation plans in a number of ways:

• For typical, business rollup reporting.

• For rollup funding of groups at each level, from the top down.

  The system uses the hierarchy to ensure that funding at lower levels does not exceed the allocation at the upper levels of the hierarchy.

• For the inheritance of goals, goal attainments, and payout formula (target, minimum, and maximum).

  Inheritance eases the setup for groups that have the same goals, attainments, or payouts as groups above them.

• To provide user security that is inherited from parent to child groups when you access Variable Compensation pages.

  Security inheritance eases the setup of user security for each level of the tree.