Credit Assignment Introduction

Using Xactly Credit Assignment

Xactly Credit Assignment requires you to complete an initial setup procedure that
defines key roles, attributes, mappings, and rules within the application. You typically
need to complete this process once when you first use the system.
After this initial setup, you can use the application with minimal management, adjusting
certain settings such as territory rules and definitions on an as-needed basis.

Setting Up Credit Assignment

Using the Credit Assignment application for the first time typically involves the following
steps:

1. Define roles for users within Xactly Credit Assignment.

These roles define the access privileges to features and resources (such as
managing territories or dimensions) within the Credit Assignment application,
and are independent of roles assigned within Xactly Incent. Using the Setup >
Roles area, you can assign full access, read-only access, or no access, as
required.

For more information about roles within the Credit Assignment application, see
“Roles”.

2. Assign roles to users within your business.

Xactly Credit Assignment uses the same set of users as Xactly Incent. However,
since roles within the Credit Assignment application are distinct from the roles
in Incent, administrators need to assign Credit Assignment roles (using the
Setup > Users area) to users that need to access Credit Assignment features
and resources.

For more information about assigning roles to users within the Credit Assignment
application, see “Users”.

3. Define custom fields for orders.
You need to define any custom fields on orders using the Setup > Order Custom Fields area.

For more information about custom fields for orders, see “Order Custom Fields”.

4. Specify the dimensions and dimension hierarchies for your business.

Dimensions and dimension hierarchies are attributes that offer a way to determine
the person or persons who should receive credit for a transaction or
order. One option, for example, is to create dimension and dimension hierarchies
based on geography. Other options include basing dimensions on products
or product lines, among other scenarios.

Using geography as an example, you could use the Territory Management >
Dimensions and Territory Management > Dimension Values areas to create a
hierarchy that begins with the region and includes countries, states, cities, and
postal/ZIP codes underneath. This scheme would allow credits to be assigned
when the ZIP code on an order item matches the specific ZIP code defined for
a territory (using the ZIP code dimension).

Similarly, you can define multiple dimension hierarchies, as needed, and create
more complex rules (described in the next step) using AND and OR logical
conditions.

note: Dimension hierarchies are simply ways to group related dimensions.
Xactly Credit Assignment does not use the hierarchy structure for matching;
matches are made against specific values. This means that if a person is
responsible for ZIP code ‘95113’, for instance, Credit Assignment is unable to
assign a credit for an order in ‘California’.

Related to dimensions and dimension hierarchies are the values associated
with these objects. You can specify a dimension value for a dimension using
the Territory Management > Dimension Values area. For instance, you could
assign ‘San Francisco’ and ‘San Jose’ as values to the City dimension.

For more information about dimensions, dimension hierarchies, and dimension
values, see “Dimensions”, “Dimension Hierarchies”,
and “Dimension Values” respectively.

5. Define attribute mappings between orders and dimensions.

After creating your dimensions and dimension hierarchies, you need to define
mappings between the dimensions and attributes on order items using the
Setup > Order/Dimension Mappings area.

For more information about mapping orders and dimensions, see “Order/
Dimension Mappings”.

6. Create dimension rules to associate orders with territories.

After you specify the dimensions for your business, you can define dimension
rules to help you build the territory rules that ultimately associate specific
orders with territories. You can do this in the Territory Management > Dimension
Rules area.

Dimension rules are not the final rules that Xactly Credit Assignment uses to
associate orders with territories. Instead, you can think of dimension rules as
being rule templates or rule snippets—small rule segments that you can use to
build your final territory rules in the Territory Management > Territories area.
Dimension rules consist of conditions joined together by logical operators (such
as AND and OR) that are further organized into condition groups. For more
information about dimension rules, see “Dimension Rules”.

7. Define the territories for your business.

As a final step in preparing to use Xactly Credit Assignment, you need to
define the territories for your business. This principally involves creating territory
rules to identify the orders that are to be matched to a territory, and assigning
the people (with their respective split percentages) who are to receive credit
for an order.

When creating the territory rules, you can leverage the work you did earlier
defining the dimension rules by loading specific rules into a territory and
expanding and customizing the rule definition as required. For example, you
might load a dimension rule that references the ZIP code, changing the value
of the ZIP code for each territory rule, as required.

note: Changes you make to territory rules, including dimension rules that you
load, do not affect the original dimension rule definitions in the Territory Management
> Dimension Rules area. This allows you to use dimension rules as a
template for multiple territory rules without worrying about modifying the original.
You can optionally specify start and end dates for territories, allowing you to
manage people moving between territories or other changes.

For more information about territories, see “Territories”.

8. Optionally, define custom fields for territories.

Territory custom fields enable you to add custom attributes to territory definitions.
These fields are for informational and reporting purposes only; Xactly
Credit Assignment does not use these fields for processing.

For more information about custom fields for territories, see “Territory Custom
Fields”.

Performing Credit Assignments

After you have performed the initial setup, completing the credit assignment processing
involves the following:

1. Upload the orders into Xactly Credit Assignment.

Xactly Credit Assignment offers the ability to pre-process your orders to assign
credits. This means that you need to upload the orders using the Credit Assignment
> Orders area (or using the Xactly Connect API) prior running the credit
assignment process.

For more information about uploading orders, see “Orders”.

2. Assign credits for one or more periods.

Unlike Xactly Incent, which processes orders in batches, Xactly Credit Assignment
allows you to process orders to assign credits by period (as defined in the
Setup > Calendars area in Incent). Using the Credit Assignment > Assign Credits
area, you can filter the unprocessed periods and start the credit assignment
process with a single click.

For more information about assigning credits, see “Assign Credits”.

3. Check for unassigned orders and, optionally, verify assigned orders.

After running the credit assignment process, you can return to the Credit
Assignment > Orders area to filter the results to find unassigned orders. You
then have the option to adjust the territory rules and run the credit assignment
process again, or assign the credits manually using the Credit Assignment >
Orders area.

For more information about checking for unassigned orders, see “Orders”.

4. Download orders from Xactly Credit Assignment, and upload the orders to
Incent.

After assigning credits, you need to download the orders using either the
Credit Assignment > Orders area or through the Xactly Connect API. At this
point, the orders are ready for upload to Xactly Incent for processing to determine
the actual commissions.

For more information about downloading orders, see “Orders”.

Understanding How Xactly Credit Assignment Uses Active Dates

Xactly Credit Assignment uses the calendars you have defined in Xactly Incent to
determine the periods within the application. Credit Assignment then uses these periods
to ascertain the territories and assignees for specific orders.

The process begins when administrators upload orders to Xactly Credit Assignment, at
which point the application checks the incentive date of each order to determine
the corresponding calendar period. For example, for an order with an incentive date
of 1/15/12, Xactly Credit Assignment could associate a matching period of JAN-2012
(as the date is between 1/1/12 and 1/31/12, as defined for the period).
When an administrator then performs the credit assignment for a period, Xactly Credit

Assignment completes the following process:

1. The application collects all territories that are active on the processing period end
date (territories for which the processing period end date falls between active
start and end date for the territory).

For example, consider the following territories:

Territory T1 — Active Start Date: 1/15/12, Active End Date: 12/31/12
Territory T2 — Active Start Date: SOT, Active End Date: 01/15/12
Choosing JAN-2012 as the credit assignment processing period results in only Territory
T1 being collected for further processing.

2. For each territory identified in the previous step, Xactly Credit Assignment applies
the corresponding territory rules to orders associated with the processing period.
For a processing period of JAN-2012, for example, the application processes all
orders associated with JAN-2012.

3. Xactly Credit Assignment assigns the sales representatives that are active on the
end date of the selected processing period to orders that satisfy the territory rules.

For example, consider the case in which the following sales representatives are
assigned to Territory T1:

SalesRep SR1 — 1/15/12 to EOT
SalesRep SR2 — SOT to 1/15/12

In this case, only SalesRep SR1 is assigned to the orders, since only SalesRep SR1 is
active on the end date of the processing period.