Deposit Rules

Objectives
After completing this lesson, you will be able to:

After completing this lesson, you will be able to:

  • Create a deposit rule
  • Describe the use of Earning Groups and Earning Codes

Deposit Rules

Once we’ve calculated the amount of a payee’s earnings in the Incentive Rules, we need to determine how much of the earning to pay and when to pay it. This is where the Deposit Rule comes in. The deposit rule is the most important rule in a plan, since it is the output of this rule that acts as input for the internal calculations that generate the payment.

A deposit is created only if the incentive is available for deposit. For example, a calculation run in February doesn't generate a deposit output for a quarterly incentive rule if the quarter ends in March.

There are two types of Deposit Rules:

  • Basic Deposit Rules use Incentives as their input
  • Detail Deposit Rules use Credits as their input

Some things you can do in a Deposit Rule:

  • Put a hold on all or part of a Deposit until a future period
  • Differentiate or combine multiple incentives into a single deposit
  • Assign Earning Groups and Earning Codes to a Deposit

Hold Functions In Deposit Rules

Hold functions are used to delay a compensation payment for the payee. This is done in cases where the company needs to wait to pay the appropriate compensation to the payee.

Hold Types include:

  • Release Immediately: Do not place a hold.
  • Indefinite Hold: This will hold the deposit indefinitely, until an Administrator manually releases the hold.
  • Hold with Conditions: Holds a payment until a condition is true. For example, an employee can receive their bonus once they have reached 90 days of employment.
  • Period Type: Release a payment after a certain number of periods.

Earning Groups And Earning Codes

Earning Codes and Earning Groups are required fields within a deposit rule.

Earning Codes: These are labels that define different types of deposits. They're primarily used for accounting purposes.

Earning Groups: These are used to group similar types of deposits. Payments of the same earning group aggregate or offset each other.

Both Earning Groups and Earning Codes have dropdown lists that can be populated from the Global Values.

Example of Earning Groups and Earning Codes

In the example below, Incentive 1 and Incentive 2 have the same Earning Group (Commission). The two are combined in a single Payment (Payment 1) with an Earning Group of Commission. The two values (-$500 and $200) are combined into a value of -300. Since Deposit 3 has a separate Earning Group (Bonus), the resulting Payment is separate from Payment 1 and pays a value of $100.

Exercise: Create a Basic Deposit Rule

Business Example

In this exercise, you will create a basic deposit rule to set the terms of payment for the Monthly Commission. The value of the deposit will be populated with the incentive output.

Steps

  1. Select Deposit Rule and select Create New Rule.

  2. Select the radio button for A rule that uses one or more Incentives as input.

  3. Type DR_Monthly_Commission_Deposit in the Name field.

  4. Confirm BikesInMotion is selected as the Business Unit.

  5. Select Next.

  6. Leave the condition box blank and select Next.

  7. Select Create New Deposit Amount.

  8. Enter the following in the Deposit Amount:

    1. Output name: DO_Monthly_Commission_Deposit.

    2. Use the editor to reference the incentive IO_Monthly_Sales_Commission.

    3. Select the Editor Window.

    4. Enter Inc in the Expression box.

    5. Select reference: Incentive.

    6. Select the Incentive dropdown.

    7. Enter IO and select IO_Monthly_Sales_Commission:Month:USD from the dropdown.

    8. Select OK.

    9. Select Commission in the Choose earning code drop down menu to the right of the Earning Code expression box.

    10. Select Commission in the Choose earning group drop down menu to the right of the Earning Group expression box-

    11. Type My Monthly Sales Commission Deposit in the Display Name for Reports field.

  9. Select Next, then Finish.

  10. Save changes to the compensation plan.

Detail Deposit Rules

As we saw earlier, the difference between a basic deposit rule and a detail deposit rule is the source of the value. Basic deposit rules are populated with an incentive, while detail deposit rules get their values from credits. Use detail deposit rules when your compensation plan does not use incentive rules to calculate earnings.

As with per-credit incentive rules, it is still important to select a measurement when creating detail deposit rules. This is because the measurement filters credits, ensuring only the desired credits are included.

To create a detail deposit rule:

  1. From the compensation plan, select the Deposits button, then select Add New.
  2. Specify the calendar and effective dates and select OK.
  3. Select A Rule that uses Credits as Input
  4. Enter a name for the deposit rule. Optionally, enter a description.
  5. Select Next.
  6. In the Source tab, select the measurement.
  7. Select Next.
  8. Leave the condition blank and select Next.
  9. Select Create New Deposit Amount and enter the following information in the Deposit Amount tab:
    • Change the Output Name to the desired name of the deposits
    • Set the Amount field to the field on the credit; for example, credit.value
    • Set the Earning Group and Earning Code
    • Set the display name for reports
    • Optionally, use the advanced options to put a hold on the deposit.

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