Incentive Compensation Payment Components

The payment business process controls how you pay salespeople, including these aspects.

Who is paid
When payment occurs
Which transactions and adjustments to pay
Approval and payment processing (if you use approvals)

Incentive compensation payment entity relationships

Pay Group

Use pay groups to define the frequency of payments and gather participants who are on the same payment cycle and sent to the same application. For example, group monthly participant payments as Pay Group A for your payables application and Pay Group B for your payroll application.

Participants in a Payment Cycle and are Paid from Payroll

You must assign participants to a pay group to include them in a payment batch when you run the payment process. You can assign multiple pay groups to a participant, but only one pay group assignment can be active at a time. You create and manage pay groups in the Participant Assignment work area.

Payment Batch

You can assign a pay group to one or more payment batches, but a payment batch can have only one pay group assigned.

Payment batches define the compensation period for which the payment is valid.
Payment batches determine payment amounts for each eligible participant.

Paysheet

Paysheets are worksheets generated when you create a payment batch. A payment batch contains multiple paysheets, and each paysheet contains this information:

Multiple payable commissions or payment transactions
Draw and recovery adjustments
Payment adjustments for the paysheet participant

Payment Plan

Payment plans contain rules regarding payment draw, draw recovery, and cap amounts to pay to assigned participants. The payment process uses these rules to populate participant paysheets with computed participant payment adjustment amounts against earnings for the period.

You can assign multiple participants with a payment plan. You can also assign multiple payment plans to a participant, but only one plan assignment can be active at a time.