Working with Compensation Elements

Describing the Advantages of Rule Elements

Objective

After completing this lesson, you will be able to describe the advantages of using compensation elements in a plan.

Rule Elements

Rule Elements are reusable objects that contain an expression or value. They make it easier to create and maintain compensation plans.

Rule elements merely store data. Until a rule element is associated with a rule, variable, or plan, it is not used in calculating compensation.

Access to rule elements is available from the Plans menu under Compensation Elements. Each type of rule element has its own workspace.

Naming Conventions

You’ll learn how to create many types of objects: fixed values, territories, variables, plans, and rules. While the system does not have strict naming requirements, we’ll use a widely accepted set of naming conventions.

  • While spaces are allowed, we will substitute an underscore ( _ ) for spaces.
  • Each object is preceded by an acronym to identify the type of object. For example, territories are preceded by T_ , and territory variables are preceded by TV_.
  • Objects that can be periodic, such as a fixed value that contains a quarterly quota, will contain the period somewhere in the name, such as FV_Quarterly_Quota or FV_Quota_Quarter.
  • Compensation plan rule names are preceded with the type of rule. For example, a direct credit rule will be preceded by DCR_, and a deposit rule will be preceded by DR_.

Advantages of Rule Elements

Rule elements store data that can be used in rules. They have three advantages that simplify the management of rules:

  • They allow the encapsulation of data in distinct objects rather than storing everything in a large, complex compensation plan.
  • They have special abilities that allow certain tasks to be accomplished easily.
  • They are effective dated, which makes it easier to manage changes in plans.

Types of Rule Elements

SAP Incentive Management has the following rule elements:

  • Territories
  • Fixed Values
  • Rate Tables
  • Lookup Tables
  • Formulas
  • Quotas

Summary

  • Compensation Elements are reusable objects that contain expressions or values, used effectively in creating and maintaining compensation plans.
  • Compensation Elements include Territories, Fixed Values, Rate Tables, Lookup Tables, Formulas, and Quotas.
  • Three significant advantages of Compensation Elements include data encapsulation, special abilities to simplify complex tasks, and Effective Dating.