Examples of Calculated Incentive Earnings
The calculation process uses classified credit transactions and valid compensation plans specified in the calculation request as well as the classification rule or credit category hierarchy to create participant earnings.
Example Introduction
The examples in this topic illustrate how calculation processing creates earnings. They use the partial classification rule hierarchy shown in this table, as well as classified credit transactions.
|
Hierarchy Level |
Rule |
Qualifying Criteria |
Credit Category |
|---|---|---|---|
|
1 |
North America |
Country = US or CAN or MEX |
None |
|
2 |
Western Region AV |
State = WA or OR or CA and Product = Audio Video |
None |
|
3 |
Western Region Audio |
Product = HomeAudio 321765 or HomeAudio 456123 |
Audio |
Calculated Earnings
This table shows the earnings generated by the calculation process. The calculation process used the partial classification rule hierarchy and classified credit transactions that all have a credit category of Audio.
|
Credit Receiver |
Credit Amount |
Credit Percentage |
Plan Component |
Earnings Rate |
Earnings |
|---|---|---|---|---|---|
|
Alex Anders |
25,000 |
50 |
Western Audio |
1.00 |
250 |
|
Haley King |
25,000 |
50 |
Western Audio |
1.00 |
250 |
|
Robert Rivera |
50,000 |
100 |
Western Audio |
.25 |
1.25 |
|
Andrew Brown |
25,000 |
100 |
Western Audio Video |
Not applicable |
Not applicable |
|
Andrew Brown |
25,000 |
100 |
Western Audio Video |
Not applicable |
Not applicable |
|
Lily Cox |
25,000 |
100 |
NA Audio Video |
Not applicable |
Not applicable |
|
Lily Cox |
25,000 |
100 |
NA Audio Video |
Not applicable |
Not applicable |
|
Richard Barta |
25,000 |
100 |
NA Audio Video |
Not applicable |
Not applicable |
|
Richard Barta |
25,000 |
100 |
NA Audio Video |
Not applicable |
Not applicable |
The plan components for the NA Audio Video plan component use a running total for the period. The process creates extra earnings and uses them for the final calculation. These two grouped earnings are found at the end of the table.
Direct and consulting salespeople have plans that calculate based on individual transactions. This table shows the earnings for two participants.
|
Original Transaction Amount |
Credit Receiver |
Credit Amount |
Earning Rate |
Earnings |
|---|---|---|---|---|
|
50,000 |
Lily Cox |
50,000 |
110 percent |
5,500 |
|
50,000 |
Richard Barta |
50,000 |
127.5 percent |
6,375 |