Name: Creating a Compensation Plan That Pays a SPIFF in SAP SuccessFactors Incentive Management
Uploaded: 2020-6-16
Duration: 689 s
Description: The video provides the steps to create a Compensation Plan that pays a SPIFF. Various rules and filters will be created to manage multiple SPIFFs or bonus payments for salespersons who sell more than expected for specific products or product types during a specific time period.

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<div><div><div>The video provides the steps to create a Compensation Plan that pays a SPIFF. Various rules and filters will be created to manage multiple SPIFFs or bonus payments for salespersons who sell more than expected for specific products or product types during a specific time period. </div></div></div>

Creating a Compensation Plan That Pays a SPIFF in SAP SuccessFactors Incentive Management

Hi. I’m Brian. This video explains how to can create a compensation plan that pays a SPIFF in SAP Commissions. A SPIFF is a special type of incentive, designed to drive sales of a specific product by awarding a higher compensation or special reward for sales of that product. SPIFFs are usually temporary or seasonal and may be awarded on a special schedule. As an example, I’ll say that a company, Intellasoft, sells a wide range of computer hardware. Usually, Intellasoft’s salespeople are paid a 1.5% commission with the sale of its hardware. Recently, a new line of laptops, the LT5000, was introduced, and Sales Management wants to drive interest in this new product line. They may decide to incorporate a SPIFF that pays a higher percentage, for example, five percent, for sales of the LT5000 Laptop, sold in the month of October 2020. Now, I’ll outline the steps to add rules to the compensation plan to pay the SPIFF. The first step is to identify which Plan to use. I’ll add this to an existing Sales Representative's compensation plan. The second step is to create a Territory that defines the product or product category that the SPIFF will reward. I’ll use a Territory because I need to control the effective dates, since SPIFFs are usually used for short periods of time and change often. Next, I’ll create a Credit Type, specifically for the SPIFF. This will be used to filter SPIFF credits in the Plan. The third step is to create a Credit Rule that only includes transactions with the LT5000 Laptop. I’ll ensure that the Credit Rule has a Credit Type of SPIFF. I can now use a filtered Primary Measurement Rule to aggregate product sales and also use an Incentive Rule that calculates the higher rate for sales of the LT5000 Laptop. If the product or product line of the SPIFF changes, I can modify the plan by creating a new version of the Territory and reference the new product. I’ll demonstrate by creating a Credit Type for the SPIFF. I’ll begin by navigating to the SAP Commissions Home Page and selecting Global Values, located under Manage Setup. I’ll click Credit Types from the available options. I’ll create a new Credit Type by clicking the Plus-Sign icon. I’ll create a new ID by clicking Create Type ID and enter SPIFF in the container. A description is optional, but I’ll enter “Limited Product Compensation” in the Description field. And, I’ll finish by clicking Create. In my example, I’m only using a single product for the SPIFF, so, I’ll create a Territory that includes the LT5000 Laptop with a limited effective time period of October 2020. To create my Territory, I’ll navigate back to the Home Page and then select Compensation Elements, located under Manage Plans. Then, I’ll click Territories. I’ll click the Plus-Sign icon to create a new Territory. With this new window, I’ll ensure that the Effective “From” date is set for the period of October 2020, through a selected end date. I’ll allow the end-period to remain as “End of Time,” however, I can easily change this end date later, if needed. I’ll click OK and then move to the Name container. I’ll name this Territory, T_SPIFF. To define the Territory with a specific product, I’ll open the Window Editor. I’ll click References and then select Reference Classifier. I’ll then enter “LT” and find the LT5000 Laptop and click that item to associate it with the Reference Classifier. I’ll finish by clicking the Checkmark at the top-right of this window. I’ll click Create to complete the newly created Territory. Now that I’ve created the Territory, I can create the Credit Rule. I’ll navigate back to my existing Plan that I use for Sales Representatives. Once the Plan is open, I’ll click the Pencil icon to edit this Plan. I’ll move down the page and select the Credit Rule icon and then click the Plus-Sign icon to create a new Credit Rule. With my example, I’ll select “Credit Based on an Individual Transaction.” I’ll name this rule, “DCR_SPIFF.” Since the effective date is set for a beginning date of October of 2020, I’ll click Next. I don’t need filters for my example, so I’ll again, click Next. Since I want the Payees to be credited, if they are identified on the Transaction, I’ll enable this option. To accomplish this, I need to reference the Territory by clicking the Reference Container and then enter “Territory” and select “Territory” from the available options. I’ll then enter the name of the Territory that I just created, “T_SPIFF.” Now, I’ll click Next. I need to edit the amount of the credit, so I’ll click the Edit Credit Amount icon and then click the Credit Type container to choose SPIFF from the list of options.  I’ll allow the amount of Transaction Value to remain, but I’ll change the Display Name for Reports to “My SPIFF Transaction Credits.” and then click Finish to save the new rule. I’ll now create a Primary Measurement rule, with a condition, to limit credits to those with the SPIFF Credit Type. To begin this process, I’ll remain in the Plan, and in the edit mode. I’ll click the Measurement Rule icon and then click the Plus-Sign icon to create a new Primary Measurement Rule. I’ll ensure that “A Rule that Sums up my Credits (Primary Measurement) is selected. I’ll name my rule “PMR_SPIFF Totals.” I’ll also enter a description, “Aggregates SPIFF Credits,” and I’ll click Next to continue. I’ll enter a condition, where, only credits with a credit type of SPIFF, will be included. I’ll enter “Credit” and then select “Credit Type” from the options. I’ll enter “=” and then select “equals” from the list. Now, I’ll type “credit” but will choose “Reference: Credit Type” from the list. Now, I’ll enter an asterisk to view a list of my credit types. I’ll choose the credit type of “SPIFF.” Now, my filter is complete. I’ll click Next and then click Edit Measurement Amount and ensure that Unit Type is U.S. Dollars. I’ll ensure that the amount displays Credit Value, and then I’ll change the Display Name for Reports. I’ll change it to “My SPIFF Totals.” I’ll click Next to continue and then click Finish to save this new rule. Now, I’ll create the Incentive Rule. I’ll remain in the Plan and in the edit mode. With this example, I’m creating a new incentive rule that will pay a flat 5% commission. I’ll begin by clicking the Incentive Rule icon and then click the Plus-Sign icon to create a new incentive rule. I’ll ensure that Aggregated Incentive Rule is enabled, and then I’ll enter a name for this rule. I’ll call this “IR_SPIFF Commission” and will click Next to continue. With this example, I don’t need any conditions because I’ve already created filters in the Measurement Rule. So, I’ll click Next. I’ll click the Create New Incentive Amount icon and then select the second option, “An Incentive that Calculates an Amount Based on a Flat Rate.” And, I’ll click Next. I’ll ensure that the first option is enabled, “Measurements Associated Directly to the Rep.” And, I’ll also reference the Primary Measurement that I created earlier. I’ll select “PM_SPIFF.” The period is correct with the selection of “Month” and there is no offset. So, I’ll click Next to continue. Now, I’ll define the rate. I’ll click the Reference Container and enter “5” and select Percent to represent the 5% commission for my example. I’ll now change the Output name from “IR” to “IO.” I’ll also change the Display Name for Reports to “My SPIFF Commission.” I’ll click Next and then click Finish to save the Incentive Rule. Once I’ve completed this, I’ll finally create a Deposit Rule that sets the terms of payment. As a note: with all compensation plans, there are many variations that can be used to meet your organization’s business needs. Today’s scenario is just one example that can help your business incorporate SPIFFs into your compensation plans. Thanks for watching.