How Credit Categories Work with the Classification and Calculation Processes

Incentive compensation classification and calculation processes use credit categories to classify credit transactions and match classified transactions to performance measures. Create credit categories and add them to classification rules and performance measures in the Compensation Plans work area.

This chart shows how credit categories match transactions to performance measures for incentive attainment and earnings calculations.

1. Evaluate credit transactions using the classification rule hierarchy.

2. The rule qualifying criteria matches the transaction attributes.

3. The rule credit category is added to the transaction, classifying the credit transaction.

4. Evaluate classified credit transactions against performance measures to determine transaction eligibility.

5. The credit categories for transactions match the performance measures.

6. Calculate incentive attainment and earnings using eligible credit transactions.