Introduction to Plan Design

The Plan Design area is used to create incentive rules and plans that define a company’s
incentive compensation program. A person can be assigned to one plan in
each calendar year.

What You Can Do

You can complete the following tasks in the Plan Design area:

• Set quotas for attainment goals
• Create formulas for rule conditions and values
• Create rate tables to set commission rates
• Define credit, commission, and bonus rules
• Define draws for guaranteeing sales incentives
• Create templates for quota uploads
• Define incentive compensation plans and associating them with various rules

 

Plan Design Flow

Overview

The following provides an overview of the Plan Design components:

1. Quotas set attainment goals for months, quarters, and years. Quota are assigned
to Commission Rules.

2. Formulas provide the added ability to create complex expressions that can be
used in the Rules Library and Rate Tables.

3. Rate Tables set commission rates based on attainment goals. Rate tables are
assigned to Commission Rules.

4. Look Up Tables can be used in formulas to look up one or two Incent objects to derive amounts or rates in a plan.

5. Attainment Measures area allows admin to manage attainment measures consistently throughout the application.

5. Rules Library calculate the following:

• Direct Credit Rules—Calculates a credit amount to the owner(s) of the order
item.
• Indirect Credit Rules—Calculates a credit amount to other positions in the
company based on a direct credit and position relationship.
• Commission Rules—Calculates a commission based on a credit amount.
• Commission Clawback Rules—Calculates a commission clawback of a portion
or all commissions given on a historic order based at the original rate.
• Commission Rate Tier Match– enable administrators to define rules that use the
rate tiers from the primary commission rule when processing credits for order items.
• Bonus Rules—Calculate a bonus based on an order item.
• Illustrator Rules– Manages rules that are applied to the Plan

6. Draws capture guaranteed payment incentives for sales representatives.

7. Plans define incentive compensation packages by selecting rules and assigning
them to Titles and/or Positions.

8. Templates enable the creation of quota and rate table uploads.

Access Control

The Plan Design privilege with its underlying pages is needed for access to the Plan
Design area.

Relationship to Other Areas

The following figure shows how the tasks you perform in the Plan Design area fit in the
Xactly Incent workflow.

Typical Implementation Process Flow

Best Practices

When preparing your plan design, be careful to avoid creating circular references, as
this can cause the calculation process to hang or terminate. The most common types
of circular references include a formula referencing a rate table which in turn references
the same formula.