Overview of Compensation Plan Rules

After completing this lesson, you will be able to:

After completing this lesson, you will be able to:

  • Name the types of compensation plan rules

Compensation Plan Rules

A Compensation Rule is an object that includes inputs, condition criteria, function(s), and an output result. There are four rule types that can be used in a compensation plan: Credit Rules, Measurement Rules, Incentive Rules, and Deposit Rules.

Each rule has an input, performs a function, and produces an output or Action. The output of a rule is used as the input of another rule. A rule can have multiple outputs.

Rules are always processed in order. This means that the calculation will start by processing credit rules, then measurement rules, and so on. Keep this in mind when designing your compensation plans.

Rules can be created in two ways.

  1. Create the rules created independently of a plan in the Rules workspace, then added them to the plans as needed.
  2. Create the rules directly in a plan, which automatically attaches the rule to the plan.

Each of these rules has many variations, but the following are some elements that all rules have in common.

  • A unique name
  • An optional description
  • A condition that must be met for the rule to take effect. The result of the condition can be a value or an expression such as a formula, but the result must be Boolean. If the condition is left empty, the rule always takes effect.
  • An output name, which populates the name of the object (credits, primary measurements, and so on) that is created by the rule.
  • A display name for reports. This is the business-friendly name that appears on reports, dashboards, and analytics for end users to see.

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