Overview of Credit, Rollup, and Classification

You can use date-effective rules to determine who receives credit for each business transaction and how much credit to allocate. Also use rules to classify base or credit transactions in preparation for calculating incentive attainment and earnings.

Plan administrators model and configure incentive plans, including classification rules, after they finalize plan compensation strategies.Managers configure credit and rollup rules before they assign incentive and draw plans.Analysts credit participants after they collect transactions and performance data and before they calculate earnings.

Setup and Maintenance Tasks

Incentive compensation application administrators and managers manage key parameters and enable table columns for use in incentive processes. In the Setup and Maintenance work area, use the following:

• Offering: Sales

• Functional Area: Incentives

• Task: Manage Parameters

Set parameters:

• Whether to enable direct and rollup crediting and if enabling rollup crediting, which rollup hierarchy to use

• Whether to enable classification and if yes, when to run classification processing

Use the Configure Tables and Columns task to enable table columns for use as qualifying criteria for classification and direct credit rules. Use the following tasks to create custom qualifiers with attribute values. Automatically populate choice lists by specifying a lookup or value set for the custom qualifier.

1. Register Custom Qualifier Tables and Views

2. Manage Incentive Lookups

3. Manage Value Sets for Custom Qualifiers

4. Manage Incentive Descriptive Flexfields

5. Manage Custom Rule Qualifiers

Classification Rules

In the Compensation Plans work area, incentive compensation plan administrators create and manage classification rules and credit categories:

• Classify credit transactions

• Apply different incentives for performance across lines of business

Credit and Rollup Rules

In the Participant Assignments work area, incentive compensation managers do these actions:

• Adapt rules to support credit allocation using multiple criteria.

• Create a hierarchical structure for use in rolling credit up the management chain, or across organizations or other sales distribution entities.

• Define teams as required to support team-based incentives.

Participants who receive direct credit from source transactions are referred to as direct credit receivers. Participants who receive credit through their relationship with direct credit receivers (managers and teammates) are referred to as indirect credit receivers. Rollup and team credits are also referred to as indirect credits.

Transaction Selection Rules for Crediting

An administrator can create transaction selection rules using the Manage Incentive Selection Rules task in Setup and Maintenance. The rule type is Filter Transactions. You can run crediting on only transactions that match the filtering criteria for one of these rules.

Tip: Run crediting again without any selection rules, because running partial crediting could affect the results of downstream processes like calculation.

Crediting, Rollup, and Classification Processing

The crediting and rollup processes use credit and rollup rules to perform these calculations:

• Identify the transactions that qualify for crediting and rollup as well as the direct and rollup credit receivers

• Determine the percentage of credit (revenue or nonrevenue) each receiver gets

The classification process uses classification rules and credit categories to classify base or credit transactions.