How Bonuses are Evaluated for Calculation

When an order is processed in Xactly Incent, the application evaluates any bonuses
to which each person associated with the order is entitled.
A bonus is calculated every time something occurs, such as selling a certain quantity
of a product.

There are two types of bonus rules:

• Every time—The bonus rule is evaluated each time an Order Item is placed.
• Once in Period—The bonus rule is evaluated just one time in a period, no matter
how many orders are placed in that period. A period can be yearly, quarterly, or
monthly.

In this example, a bonus rule has the following properties:

• The bonus is called Scanner 400 SPIF (Sales Performance Incentive Program).
• The start and end dates are 01/01/2006 and 12/31/2006.
• The bonus type is every time the goal is met.
• The bonus description is: $250 bonus for selling 10 XScan 400 scanners per order.

The conditions for this rule are:

IFOrderItemOrderTypeEqualsScanner
ANDOrderItemProductEqualsXScan 400
ANDOrderItemQuantity GreaterThanEquals10

Each time, during the course of the year, the Sales Representative has an order with
10 or more XScan 400 scanners, he will receive $250

How Draws are Evaluated for Calculation

Draws are calculated monthly, rather than per order item.

There are four types of draws:

• Non-Recoverable Guarantee—Guaranteed incentive payment for a period of
time. If the draw amount is exceeded, no draw payment is granted. If the sales
representative earns incentives that total less than the draw, the difference
between the draw amount and the incentive earned is paid. This amount is not
recovered from future earnings.
• Non-Recoverable—Additional incentive payment, paid regardless of other compensation
earned.
• Recoverable Guarantee—Guaranteed incentive payment for a period of time.
This draw is the difference between the earned amount and the guaranteed
amount. If the guaranteed amount is exceeded, no draw payment is granted. If a
draw is granted, it is added to the balance that will be recovered from the person’s
earnings in the first period the draw is not given.
• Recoverable—A draw that is paid in addition to earned compensation. The draw
is added to the balance that will be recovered from the person’s earnings in the
first period where the draw is not granted.

One of each type of draw can be defined for a Person during a year, and each type
of draw is calculated separately during the Finalize period.

After payments have been calculated, based on credits, bonuses, and commissions,
and when a period is finalized, draws are calculated and added to each person’s
total compensation.