Overview of Incentive Compensation Transaction Processing

Transaction processing for incentive compensation consists of these discrete processes: importing, collecting, crediting, rollup, classifying, calculation, and payment. You can skip any process that you don't require.

You can run the classification process after collection and before crediting if not collecting credits, or after crediting and before calculation. This flow chart shows incentive compensation processing and identifies the transactions created as part of each process, which are used by subsequent processes.

Run All Transaction Processes

Use the Run All Transaction Processes task to sequence and start all the required processes to manage the import to earning flow.

1. Collect transactions from source files and the staging table

2. Classify using the latest classification rules

3. Credit using the latest credit rules

4. Calculate earnings using the latest performance data and plans

Import, Collect, and Classify Transactions

Most transactions originate in other applications, such as order capture, accounts receivables, and sales. Import these source transactions into the staging table and then collect them into the incentive compensation table to create base transactions. If you run classification after collection and before crediting, then the final transactions for this set of transaction processes are classified base transactions. All base transactions include amounts in source and operating currencies.

Credit, Rollup, and Classify Transactions

The crediting process uses the base transactions and crediting rules to create direct credit transactions. The rollup process uses the direct credit transactions and direct credit, rollup, and team rules to create rollup and team credit transactions. All credit transactions include amounts in source, operating, and processing currencies. The classification process uses classification rules and credit categories to classify base or credit transactions.:

• If you run the classification process after collection, then the base transactions become classified base.transactions

• If you run it after crediting and rollup, then the credit transactions become classified credit transactions

Calculate Incentives and Pay Participants

The calculation process uses the classified credit transactions to calculate incentives and create earnings transactions. Run calculation processes for specified participants, business unit, and date range. The process uses only those plans and plan components that are valid and active for the specified participants and date range. The payment process uses the earnings transactions and participant payment plans to create paysheets and then payment transactions.