The Crediting and Calculation Process
This step analyzes all compensation plan components and plan elements for changes since the last calculation run and generates proprietary memory objects for streamlined processing. After generating the plan configuration changes, the calculation goes into stages. During stage one, payees are assigned credits. Credits are assigned by one of four mechanisms:
- Direct Credit: The payee is directly assigned to the compensation event, usually by payee ID.
- Indirect Credit: Determined via hierarchy in which a directly assigned payee reports to an indirectly assigned payee.
- Territory Credit: Determined via a territory look-up in which the compensation event matches criteria in the territory table.
- Team Credit: Determined for team members in which another team member has gotten credit via direct, indirect, or territory.
Transaction availability can vary from as frequently as nightly, to as seldom as annually. The Iconixx engine can process 100M+, transactions, 100's of thousands of payees, millions of territories, multiple levels of hierarchies in a fraction of processing time. Transactions can represent many types of events such as:
- Sales events like bookings, pre-order, and deal closes
- Financial events like invoicing or payment received
- Business events like the availability of month-end, quarter-end, and year-end financial information
- Management objective events like non-financial objective achievements and customer surveys
- Work Tracking events like hours worked or units produced
Common Transaction Scenarios:
- John signs on a new customer (eg. software subscriber).
- The initial payment invoice is sent out to customer.
- The initial invoice payment is received from customer.
- The corporate revenue achievement for Q1 2016 is a defined revenue goal (eg. $273.1 million).
- John's individual performance rating for 2016 is a rating (eg. five out of ten).
- John worked 57 hours and produced 23 units.
Results = Accurate Payouts
Results are records of calculation activity for each of the stages in the calculation process. While results are usually generated for direct calculation, they can also be created for reporting. Result records remain linked so that they can be traced back to the results from the previous stage. The term results include both intermediate calculation values, as well as final payment values. The types of results are:
- Credits - indicate who is eligible to receive payment based on the activity.
- Metrics - are the aggregation of credits for the calculation period.
- Commissions - are the event level earnings.
- Bonuses - are the volume based earnings.
- Payments - are the aggregation of bonuses and commissions.
- Draw Payments - are advances that must be repaid.
- Draw Repayments - are repayments on previous draws.
- Deferrals - are payments or portions of payments that are deferred until a future period.
- Balances - are the amount owed to the payee based on the calculation.
- Payroll - is the amount transferred to the payroll system.
Approvals are used to provide manual oversight to inputs into or results generated by the system. Inputs typically configured for approval are transactions and performance values. Results that are typically configured for approval are bonuses and credits. An example of an approval flow would provide a worksheet of credits to a payee’s manager in order that he might validate the data before further processing.