Incentive Rules calculate earnings, based on achievement or other company defined objectives. Typically, when Commissions processes an Incentive Rule, it compares Measurements to attainment targets, such as Quotas for each Position Assignment.
Incentive Rules tend to be complex because they contain most of the business logic. As a result, there are many ways to configure these rules. Let’s start by going over the basic types of Incentive Rules.
Types of Incentive Rules
A Basic or Aggregate Incentive Rule calculates commissions using either a fixed or sliding rate. This type of rule uses the Measurement as the input and generates the commission amount based on the Measurement, using a Rate Table, Fixed Value, Lookup Table or Formula.
The Bonus Incentive Rule is ideal for calculating a bonus or other incentive that is not a commission. We generally define a Bonus incentive rule as one that doesn’t calculate the amount of the incentive based on the Measurement.
A Per-Credit Commission Incentive Rule evaluates the value of each Credit to produce individual Commission amounts for each credit. The rule then aggregates these amounts to yield total Commissions in the form of an Incentive.