This section provides an overview and calculation examples for types that are distributed in the package.
Condition Types
List of available types with their default setup. Below you will find how to modify the setup.
|
Type |
Name |
Quota Type |
Inputs (with units) |
Notes |
|---|---|---|---|---|
|
Unconditional |
Zero Quota Percent
|
None |
Compensation input: % |
Simple % compensated to the sales agent, without any quota needed (no minimal amount of sales needed to be eligible for compensation). To be used mainly with SPIFF Compensation Plan. |
|
Conditional |
Single Quota Amount |
Single |
Quota input: $
|
Can be interpreted as: “if you reach X amount, you get Y amount”. Available also for the SPIFF Compensation Plan. |
|
Single Quota Percent |
Single |
Quota input: $
|
Available also for the SPIFF Compensation Plan. |
|
|
Multi |
Multi Quota Amount |
Multi |
Quota input: $
|
Available also for the SPIFF Compensation Plan. |
|
Multi Quota Percent |
Multi |
Quota input: $
|
Available also for the SPIFF Compensation Plan. |
|
|
Stepped |
Repetitive Quota Amount |
Multi |
Quota input: $
|
Captures scenario e.g. get 10$ compensation for every 1000$ of revenue. To be used mainly with SPIFF Compensation Plan. |
|
Stepped Amount |
Multi |
Quota input: $
|
Available also for the SPIFF Compensation Plan. |
|
|
Stepped Percent |
Multi |
Quota input: $
|
Available also for the SPIFF Compensation Plan. |
|
|
Growth |
Growth Absolute Amount |
Multi |
Quota input: $
|
Can be interpreted as: “if you grow by X% from Q1 to Q2, you get Y amount”. |
|
Growth Absolute Percent |
Multi |
Quota input: $
|
|
|
|
Growth Percent Amount |
Multi |
Quota input: %
|
|
|
|
Growth Percent Percent |
Multi |
Quota input: %
|
|
|
|
Bonus |
Flat Bonus |
Single |
Quota input: $
|
Available also for the SPIFF Compensation Plan. |
|
Multi Target Bonus |
Multi |
Quota input: $
|
Available also for the SPIFF Compensation Plan. |
|
|
Stepped Bonus |
Multi |
Quota input: $
|
Available also for the SPIFF Compensation Plan. |
|
|
Variable Pay |
Variable Pay Linear Amount |
Single |
Quota input: $
|
|
|
Variable Pay Multi Target Amount |
Multi |
Quota input: $
|
|
|
|
Variable Pay Stepped Amount |
Multi |
Quota input: $
|
|
The dollar $ sign represents a currency in general, not an actual USD.
Calculation Examples
Zero Quota Percent
Inputs in the plan:
-
Compensation – %
Success formula (always success): ( COMPENSATION_INPUT / 100 ) x BASELINE
Example
|
Compensation [input] |
Baseline |
Compensation [output] |
|---|---|---|
|
1% |
$110,000 |
$1,100 |
|
1% |
$90,000 |
$900 |
Single Quota Amount
Inputs in the plan:
-
Quota – $
-
Compensation – $
Success formula: COMPENSATION_INPUT
Example
|
Quota [input] |
Compensation [input] |
Baseline |
Compensation [output] |
|---|---|---|---|
|
$100,000 |
$1,000 |
$110,000 |
$1,000 |
|
$100,000 |
$1,000 |
$90,000 |
$0 |
Example with Volume Based Quota
Let’s assume that for every 10 products sold the Sales Agent gets 10$. Quota can be defined as volume (Quantity field in the Datamart, can be pieces, kg, etc.). Baseline stands for how many pieces the seller sold.
Volume based quota is applicable to all amount/bonus types (types where compensation is not defined as % of baseline).
|
Quota [input] |
Compensation [input] |
Baseline |
Baseline Value |
Compensation [output] |
|---|---|---|---|---|
|
10 |
$10 |
Quantity |
4 |
$0 |
|
10 |
$10 |
Quantity |
15 |
$10 |
Single Quota Percent
Inputs in the plan:
-
Quota – $
-
Compensation – %
Success formula: ( COMPENSATION_INPUT / 100 ) x BASELINE
Example
|
Quota [input] |
Compensation [input] |
Baseline |
Compensation [output] |
|---|---|---|---|
|
$100,000 |
1% |
$110,000 |
$1,100 |
|
$100,000 |
1% |
$90,000 |
$0 |
Multi Quota Amount
Inputs in the plan:
-
Quota – $
-
Compensation – $
Success formula: COMPENSATION_INPUT
Example
|
Quota [tiered input] |
Compensation [tiered input] |
|---|---|
|
$1000 |
$100 |
|
$1500 |
$150 |
Result:
|
Baseline ($) |
Compensation [output] |
|---|---|
|
$100 |
$0 |
|
$1100 |
$100 |
|
$1600 |
$150 |
Multi Quota Percent
Inputs in the plan:
-
Quota – $
-
Compensation – %
Success formula: ( COMPENSATION_INPUT / 100 ) x BASELINE
Example
|
Quota [tiered input] |
Compensation [tiered input] |
|---|---|
|
$1000 |
1% |
|
$1500 |
10% |
Result:
|
Baseline ($) |
Compensation [output] |
|---|---|
|
$100 |
$0 |
|
$1100 |
$11 |
|
$1600 |
$160 |
Repetitive Quota Amount
Inputs in the plan:
-
Quota(s) – $
-
Compensation(s) – $
Success formula: COMPENSATION_INPUT x (BASELINE / QUOTA) (Euclidean division)
Example
Definition:
|
Quota [input] – Step |
Compensation [input] |
|---|---|
|
$10,000 |
$100 |
Result:
|
Baseline |
Compensation [output] |
|---|---|
|
$5,000 |
$0 |
|
$15,000 |
$100 |
|
$110,000 |
$1,100 |
Stepped Amount
Inputs in the plan:
-
Quota(s) – $
-
Compensation(s) – $
Success formula for step 1: COMPENSATION_INPUT_FOR_STEP1
Success formula for step 2: COMPENSATION_INPUT_FOR_STEP1 + COMPENSATION_INPUT_FOR_STEP2
Example
Definition:
|
Quota [tiered input] – Step |
Compensation [input] |
|---|---|
|
$10,000 |
$100 |
|
$50,000 |
$500 |
|
$100,000 |
$5,000 |
Result:
|
Baseline |
Compensation [output] |
|---|---|
|
$5,000 |
$0 |
|
$15,000 |
$100 |
|
$110,000 |
$100 + $500 + $5,000 = $5,600 |
Stepped Percent
Inputs in the plan:
-
Quota(s) – $
-
Compensation Value(s) – %
Success formula for step 1: (COMPENSATION_INPUT_FOR_STEP1 / 100 ) x (BASELINE - TARGET_STEP1)
Success formula for step 2: ((COMPENSATION_INPUT_FOR_STEP1 / 100 ) x TARGET_STEP1) + ((COMPENSATION_INPUT_FOR_STEP2 / 100 ) x (BASELINE - TARGET_STEP2))
Example
Definition:
|
Quota [tiere input] – Step |
Compensation Value [input] |
|---|---|
|
$10,000 |
1% |
|
$50,000 |
3% |
|
$100,000 |
10% |
Result:
|
Baseline |
Compensation [output] |
|---|---|
|
$5,000 |
$0 |
|
$15,000 |
($5,000 * 1%) = $50 |
|
$110,000 |
($40,000 * 1%) + ($50,000 * 3%) + ($10,000 * 10%) = $400 + $1,500 + $1,000 = $2,900 |
Growth Absolute Amount
Comparison to some previous period – Month, Quarter, Semi-Year, Year.
Inputs in the plan:
-
Quota(s) – $
-
Compensation Value(s) – $
Success formula: COMPENSATION_INPUT_FOR_TIER
Example
Definition:
|
Quota [input] – Growth Tier |
Compensation Value [input] |
|---|---|
|
$10,000 |
$100 |
|
$25,000 |
$300 |
|
$100,000 |
$10,000 |
Result:
|
Growth Baseline (Current – Previous) |
Compensation [output] |
|---|---|
|
$5,000 |
$0 |
|
$30,000 |
$300 |
|
$150,000 |
$10,000 |
Growth Absolute Percent
Comparison to some previous period – Month, Quarter, Semi-Year, Year.
Inputs in the plan:
-
Quota(s) – $
-
Compensation Value(s) – %
Success formula: (COMPENSATION_INPUT_FOR_TIER / 100) x BASELINE
Example
Definition:
|
Quota [input] – Growth Tier |
Compensation [input] |
|---|---|
|
$10,000 |
1% |
|
$25,000 |
2% |
|
$100,000 |
5% |
Result:
|
Baseline |
Compensation [output] |
|---|---|
|
$5,000 |
$0 |
|
$25,000 |
$500 |
|
$150,000 |
$7,500 |
Growth Percent Percent
Comparison to some previous period – Month, Quarter, Semi-Year, Year.
Inputs in the plan:
-
Quota(s) – %
-
Compensation Value(s) – %
Success formula: (COMPENSATION_INPUT_FOR_TIER / 100) x BASELINE
Example
Definition:
|
Quota [input] – Growth Tier % |
Compensation Value [input] |
|---|---|
|
2% |
1% |
|
5% |
3% |
|
10% |
5% |
Result:
|
Baseline |
Calculation Baseline |
Compensation [output] |
|---|---|---|
|
1% |
$10,000 |
$0 |
|
2% |
$100,000 |
$1,000 |
|
11% |
$100,000 |
$5,000 |
Growth Percent Amount
Comparison with some previous period – Month, Quarter, Semi-Year, Year.
Inputs in the plan:
-
Quota(s) – %
-
Compensation Value(s) – $
Success formula: COMPENSATION_INPUT_FOR_TIER
Example
Definition:
|
Quota [input] – Growth Tier % |
Compensation Value [input] |
|---|---|
|
2% |
$1,000 |
|
5% |
$10,000 |
|
10% |
$25,000 |
Result:
|
Baseline |
Compensation [output] |
|---|---|
|
1% |
$0 |
|
2% |
$1,000 |
|
11% |
$25,000 |
Flat Bonus
Inputs in the plan:
-
Quota – $
-
Target Incentive – $
Success formula: (BASELINE / QUOTA) x TARGET_INCENTIVE
Example
|
Quota [input] |
Target Incentive [input] |
Baseline |
Compensation [output] |
|---|---|---|---|
|
$100,000 |
$100 |
$110,000 |
$110 |
|
$100,000 |
$1,000 |
$90,000 |
$900 |
Multi Target Bonus
Inputs in the plan:
-
Quota – $
-
Target Incentive – $
-
Target Achievement – %
-
Bracket Bonus Rate – %
Success formula for baseline under tier 1: (BASELINE / QUOTA) x TARGET_INCENTIVE x BRACKET_BONUS_RATE_FOR_TIER_1 / 100
Success formula for baseline under tier 2: (((BRACKET_BONUS_RATE_FOR_TIER_1 / 100 x QUOTA) / QUOTA) x TARGET_INCENTIVE x BRACKET_BONUS_RATE_FOR_TIER_1 / 100) + ((BASELINE - (BRACKET_BONUS_RATE_FOR_TIER_1 / 100 x QUOTA)) / QUOTA x TARGET_INCENTIVE x BRACKET_BONUS_RATE_FOR_TIER_2 / 100
Example
Quota [input] – $1,000
Target Incentive [input] – $100
Tiers definition:
|
Target Achievement [tiered input] |
Bracket Bonus Rate [tiered input] |
|---|---|
|
120% |
3% |
|
140% |
5% |
|
250% |
10% |
Result:
|
Baseline ($) |
Target Achievement (%) |
Bracket Bonus Rate (%) |
Compensation [output] |
|---|---|---|---|
|
$1,000 |
120% |
3% |
$3 |
|
$1,300 |
140% |
5% |
$4.1 |
|
$2.000 |
250% |
10% |
$10.6 |
|
$3.000 |
250% |
10% |
$20.6 |
Stepped Bonus
Inputs in the plan:
-
Quota – $
-
Target Incentive – $
-
Target Achievement – %
-
Bracket Bonus Rate – %
Success formula for baseline under tier 1: (BASELINE / QUOTA) x TARGET_INCENTIVE x BRACKET_BONUS_RATE_FOR_TIER_1 / 100
Success formula for baseline under tier 2: (BASELINE / QUOTA) x TARGET_INCENTIVE x BRACKET_BONUS_RATE_FOR_TIER_2 / 100
Example
Quota [input] – $1,000
Target Incentive [input] – $100
Tiers definition:
|
Target Achievement [tiered input] |
Bracket Bonus Rate [tiered input] |
|---|---|
|
120% |
3% |
|
140% |
5% |
|
250% |
10% |
Result:
|
Baseline ($) |
Target Achievement (%) |
Bracket Bonus Rate (%) |
Compensation [output] |
|---|---|---|---|
|
$1,000 |
120% |
3% |
$3 |
|
$1,300 |
140% |
5% |
$5 |
|
$2.000 |
250% |
10% |
$10 |
|
$4.000 |
above 250% |
0% |
$0 |
Please note that the Compensation drops to zero when the tier is not defined (in the example it is the case of “above 250%” Target Achievement).
Variable Pay Linear Amount
Inputs in the plan:
-
Quota – $
-
Variable Pay – %
Success formula: (BASELINE / QUOTA) x VARIABLE_PAY / 100 x SELLER_SALARY
Example
|
Quota [input] |
Variable Pay [input] |
Baseline |
Seller Salary (Annual) |
Compensation [output] |
|---|---|---|---|---|
|
$1,000,000 |
10% |
$300,000 |
$60000 |
$1,800 |
|
$100,000 |
2% |
$90,000 |
$80000 |
$1,440 |
In case of Group compensations the salary taken to calculations is the average of all included seller salaries.
Variable Pay Multi Target Amount
Inputs in the plan:
-
Quota – $
-
Variable Pay – %
-
Target Achievement – %
-
Bracket Bonus Rate – %
Success formula for baseline under tier 1: (BASELINE / QUOTA) x VARIABLE_PAY / 100 x SELLER_SALARY x BRACKET_BONUS_RATE_FOR_TIER_1 / 100
Success formula for baseline under tier 2: (((BRACKET_BONUS_RATE_FOR_TIER_1 / 100 x QUOTA) / QUOTA) x VARIABLE_PAY / 100 x SELLER_SALARY x BRACKET_BONUS_RATE_FOR_TIER_1 / 100) + ((BASELINE - (BRACKET_BONUS_RATE_FOR_TIER_1 / 100 x QUOTA)) / QUOTA x VARIABLE_PAY / 100 x SELLER_SALARY x BRACKET_BONUS_RATE_FOR_TIER_2 / 100
Example
Quota [input] – $1,000
Variable Pay [input] – 10%
Tiers definition:
|
Target Achievement [tiered input] |
Bracket Bonus Rate [tiered input] |
|---|---|
|
120% |
3% |
|
140% |
5% |
|
250% |
10% |
Result:
|
Baseline ($) |
Target Achievement (%) |
Bracket Bonus Rate (%) |
Seller Salary ($) |
Compensation [output] |
|---|---|---|---|---|
|
$1,000 |
120% |
3% |
$10,000 |
$3000 |
|
$1,300 |
140% |
5% |
$10,000 |
$4,100 |
|
$2,000 |
250% |
10% |
$10,000 |
$10,600 |
|
$3,000 |
250% |
10% |
$10,000 |
$20,600 |
In case of Group compensations the salary taken to calculations is the average of all included seller salaries.
Variable Pay Stepped Amount
Inputs in the plan:
-
Quota – $
-
Variable Pay – %
-
Target Achievement – %
-
Bracket Bonus Rate – %
Success formula for baseline under tier 1: (BASELINE / QUOTA) x VARIABLE_PAY / 100 x SELLER_SALARY x BRACKET_BONUS_RATE_FOR_TIER_1 / 100
Success formula for baseline under tier 2: (BASELINE / QUOTA) x VARIABLE_PAY / 100 x SELLER_SALARY x BRACKET_BONUS_RATE_FOR_TIER_2 / 100
Example
Quota [input] – $1,000
Target Incentive [input] – $100
Tiers definition:
|
Target Achievement [tiered input] |
Bracket Bonus Rate [tiered input] |
|---|---|
|
120% |
3% |
|
140% |
5% |
|
250% |
10% |
Result:
|
Baseline ($) |
Target Achievement (%) |
Bracket Bonus Rate (%) |
Seller Salary ($) |
Compensation [output] |
|---|---|---|---|---|
|
$1,000 |
120% |
3% |
$10,000 |
$3,000 |
|
$1,300 |
140% |
5% |
$10,000 |
$5,000 |
|
$2.000 |
250% |
10% |
$10,000 |
$10,000 |
|
$4.000 |
above 250% |
0% |
$10,000 |
$0 |
In case of Group compensations the salary taken to calculations is the average of all included seller salaries.
Please note that the Compensation drops to zero when the tier is not defined (in the example it is the case of “above 250%” Target Achievement).
Compensation Records Calculation
Payout Value Calculation
The “Annual” target needs a Deposit Scheme. The scheme decides if the calculation is split by the number of periods in the target time span.
Input information:
-
Condition Type: [SC] Single Quota Amount
-
Payment Period: Quarterly
-
Quota For: Plan Duration
Target input:
-
Target Input: 100,000.0
-
Compensation Input: 1,000.0
As the payment period is each quarter, we have 4 Compensation Records with the following data:
|
Compensation Record |
Period |
Period Sale |
Cumulative Sale |
|---|---|---|---|
|
COR01 |
Q1 |
90,000 |
90,000 |
|
COR02 |
Q2 |
11,000 |
101,000 |
|
COR03 |
Q3 |
49,000 |
150,000 |
|
COR04 |
Q4 |
50,000 |
200,000 |
Non-Cumulative Example
The calculation is driven by following an execution pattern.
If ( Cumulative_Sale > Target_Input ) then
Compensation_Value = Compensation_Input / 4
end
Note: Number 4 stands for a number of Compensation Records.
|
Compensation Record |
Period |
Compensation Value |
|---|---|---|
|
COR01 |
Q1 |
0 |
|
COR02 |
Q2 |
250 |
|
COR03 |
Q3 |
250 |
|
COR04 |
Q4 |
250 |
Cumulative Example
The calculation is driven by following an execution pattern.
If ( Cumulative Sale > Target_Input ) then
Compensation_Value = ( Compensation_Input / 4 ) * Current_Period_Index - Accrual
end
Notes:
-
Number 4 stands for a number of Compensation Records.
-
Current Period Index starts with 1.
-
Accrual is the cumulative compensation.
|
Compensation Record |
Period |
Current Period Index |
Accrual |
Compensation Value |
|---|---|---|---|---|
|
COR01 |
Q1 |
1 |
0 |
0 |
|
COR02 |
Q2 |
2 |
0 |
500 |
|
COR03 |
Q3 |
3 |
500 |
250 |
|
COR04 |
Q4 |
4 |
750 |
250 |