11Incentive Compensation Calendars and Intervals

This chapter contains the following:

Create an incentive compensation calendar for each business unit so you can process transactions. Create interval types to group calendar periods to accumulate achievements, earnings, and payments. Existing interval types are year, semi-annual, quarter, and period (calendar period).

You must associate an incentive compensation calendar with each business unit before you can process transactions for the business unit.

To manage your calendars, follow these steps:

  1. Create the calendar

  2. Assign the calendar to a business unit

  3. Edit the status of periods within the business unit

  4. Create periods in the calendar

Create the Calendar

  1. In the Setup and Maintenance work area, go to the following:

    • Offering: Sales

    • Functional Area: Incentives

    • Task: Manage Incentive Calendars

  2. On the Manage Incentive Calendars page, select the period type, which is how you divide your calendar or fiscal year.

    Create period types if you need them.

    • Enter the number of periods in a year so that the application can validate the periods that you define for the calendar.

    • Select the shortest period you need (for example, weekly or monthly). You can't accumulate attainments for a period type shorter than your selection. For example, if you select monthly, then you can't accumulate attainments weekly. The application accumulates attainments, maintains goals and subledger balances, and processes payments at this level or higher levels.

      Note: You can't edit or delete standard or user-created period types used by any calendar.
  3. Define the periods by using the selected period type:

    • Period, such as Jan-2015 or Quarter1-2015

      Abbreviate the period name if you want to, for example, Jan for January or W1 for Week1.

    • Sequence

      The application arranges periods according to the sequence values you enter.

    • Start and end dates

      The date ranges within one period can't overlap with other periods or skip dates between periods.

    Create all the periods you need for the compensation plans, measures, and goals before creating any plans, measures, or goals.

  4. Save the calendar.

    The Save process stores the calendar data in the calendar table CN_CALENDARS and the period data in the period table CN_PERIODS.

Assign a Calendar to a Business Unit

  1. In the Setup and Maintenance work area, go to the Manage Parameters task.

  2. You must select the business unit to set the context for this task.

  3. Select the calendar that you want to use for the business unit.

  4. Save your changes.

    The Save process inserts the periods (zero or more) that are assigned to that calendar into the following business-unit-level tables:

    • The CN_CAL_PER_INT_TYPES table stores each period for each interval type defined for the business unit.

    • The CN_PERIOD_STATUS table stores basic period data, including the default status, Never Opened, which is given to each period.

Edit the Period Status Within the Business Unit

  1. Open the Manage Periods page using either of these tasks:

    • Manage Periods in the Participant Assignments work area

    • Manage Open Period Process in the Setup and Maintenance work area

  2. Change the status of all periods you want to open.

  3. Select to include period data in participant reports. The selected periods become available in the Mobile Commissions application.

  4. Save your changes.

    The Save process updates the period statuses in the CN_PERIOD_STATUS table accordingly. If required, it starts a scheduled process to populate the period data in all of the participant-related tables.

Create Calendar Periods

  1. In the Setup and Maintenance work area, go to the Manage Incentive Calendars task.

  2. On the Manage Incentive Calendars page, select the calendar.

  3. Add future periods to the calendar.

  4. Save your changes.

    The Save process inserts the new period records into these tables:

    • CN_PERIODS: Tracks the calendar periods not business unit-based

    • CN_PERIOD_STATUS: Tracks the periods and associated statuses for each business unit

      For example, if there are three business units associated with the calendar, then insert the newly created period record into all of the business unit tables.

    • CN_CAL_PER_INT_TYPES: Groups each period into the interval type for each business unit.

      For example, if there are three business units associated with a calendar, and assuming each one has four interval types (Period, Quarter, Semi Annual, and Year), then insert the newly created period record as 12 records (3 business units x 4 interval types).

Add a New Fiscal Year

Add periods for a new fiscal year to a calendar in use by business units:

  1. Create all the periods required for performance measures and goals first using the Manage Incentive Calendars task in the Setup and Maintenance work area.

  2. Use the Manage Periods task in the Participant Assignments work area or the Manage Open Period Process task in the Setup and Maintenance work area to:

    • Correct the interval numbers for the new period for various interval types for the business unit.

    • Open the period in each business unit to use the period for transaction processing.

The Save process on the Manage Incentive Calendars page updates the period status and interval-related tables for all the business units you assigned the calendar to.

Interval types group specific calendar periods to accumulate achievements, such as interval-to-date attainment, earnings such as year-to-date earnings, or payments during calculation and payment processing.

There are four delivered interval types:

  • Year

  • Semi Annual

  • Quarter

  • Period

    Period has the same definition as the calendar period.

You can create interval types, as required.

Example of Quarterly Intervals

This example shows how to use interval numbers to group periods into quarters.

Period Year From Date To Date Interval Number

Jan-15

2015

1-Jan-2015

31-Jan-2015

2015001

Feb-15

2015

1-Feb-2015

28-Feb-2015

2015001

Mar-15

2015

1-Mar-2015

31-Mar-2015

2015001

Apr-15

2015

1-Apr-2015

30-Apr-2015

2015002

May-15

2015

1-May-2015

31-May-2015

2015002

Jun-15

2015

1-Jun-2015

30-Jun-2015

2015002

Jul-15

2015

1-Jul-2015

31-Jul-2015

2015003

Aug-15

2015

1-Aug-2015

31-Aug-2015

2015003

Sep-15

2015

1-Sep-2015

30-Sep-2015

2015003

Oct-15

2015

1-Oct-2015

31-Oct-2015

2015004

Nov-15

2015

1-Nov-2015

30-Nov-2015

2015004

Dec-15

2015

1-Dec-2015

31-Dec-2015

2015004

Example of Yearly Intervals

This example shows how to use an interval number to group periods into a year.

Period Year From Date To Date Interval Number

Jan-15

2015

1-Jan-2015

31-Jan-2015

2015

Feb-15

2015

1-Feb-2015

28-Feb-2015

2015

Mar-15

2015

1-Mar-2015

31-Mar-2015

2015

Apr-15

2015

1-Apr-2015

30-Apr-2015

2015

May-15

2015

1-May-2015

31-May-2015

2015

Jun-15

2015

1-Jun-2015

30-Jun-2015

2015

Jul-15

2015

1-Jul-2015

31-Jul-2015

2015

Aug-15

2015

1-Aug-2015

31-Aug-2015

2015

Sep-15

2015

1-Sep-2015

30-Sep-2015

2015

Oct-15

2015

1-Oct-2015

31-Oct-2015

2015

Nov-15

2015

1-Nov-2015

30-Nov-2015

2015

Dec-15

2015

1-Dec-2015

31-Dec-2015

2015

FAQs for Calendars and Intervals

Yes. In the Setup and Maintenance work area, use the Manage Parameters task in the Incentives functional area to assign the calendar. You must select a business unit to set context when using this task.

The application automatically propagates any change to the calendar, such as new periods, to all of the business units using the calendar.

You can update the calendar name and add more periods. You can't change the period type.

You must run the calculation and payment processes again for all of the periods affected by the change in the interval numbers.

They're used with:

  • Performance measures as performance intervals to accumulate attainment information and as goal intervals

  • Plan components to specify how frequently to calculate earnings: the payout frequency

  • Payment plans as payment intervals to define draw and cap rules

You can't delete a user-defined interval type if it's used in any of these ways.

You can't delete the delivered interval types Year, Semi-Annual, Quarter, and Period. Nor can you delete any interval type that you created if anyone used it in a performance measure, plan component, goal, or payment plan.