Credit Rules answer the question "who is getting credit for this transaction?". Using the information we put in the rule, each transaction is analyzed, and a credit is created for each Position Assignment and period.
Direct Credit Rules
Credit rules can be Direct or Indirect. We’ll start with direct credit rules, which allocate credits to position assignments, originating from a transaction.
Let’s look at an example. Say that transaction 1618 has a date of January 12, 2022 and is preassigned to Position Assignment SR-C2 (Sales Rep Central - Joyce Fisher). When creating the credit rule, we would indicate that the transaction has been preassigned. This tells the system to find the name of the preassigned payee, create a new credit, allocate the credit to the payee, and designate the period as January 2022.
The following image shows how the credit rule is set to retrieve preassigned payees, and where to find this information in the transaction.
Another way direct credits can be created is by using the territory we created in Unit 3. When using a territory, the transaction is not pre-allocated to a payee; instead, the rule looks at other information, such as the product or geographic region, to determine who gets the credit.
The Advanced Options section of the credit output allows you to select optional settings for the credit. This includes Holds, Duplication Formula, and Rollup Credits.
By default, credits are released immediately. The Hold option allows you to place a hold on a credit until a specific period, a specific period type, or indefinitely until the credit is manually released.
If you make a credit rollable, ("Rollup Credits") the credit is able to roll in the direction you define in the indirect credit rule. It will roll as far as permissible up the reporting hierarchy or roll type hierarchy you defined. This is done by checking the Rollup Credits box in the credit output. We will learn more about rolled, or indirect, credits shortly.
The Duplication Formula is an expression that allows you to determine whether duplicate credits are allowed. A duplicate credit is a credit generated from the same transaction for a given Position Assignment, period, and credit type. When creating indirect credit rules, in some circumstances you may wish to allow duplicate credits. If so, change the setting to allow duplicates from FALSE to TRUE.