How Credit Attainments are Calculated

When processing orders to determine credits and commissions, Xactly Incent calculates
the total credit attainment, as defined in your commission rules, by incrementing
the attainment only in cases when the commission rule is triggered. In certain cases,
this can result in the total credit attainment potentially incrementing “out-of-step”
unless you explicitly define commission rules to update the attainment with each processed
order.

To illustrate, consider the case in which a person has two credit rules, the first rule producing
a credit of type Revenue and the second rule producing a credit of type

Bookings. As part of the person’s commission plan, there is a single commission rule for
the Revenue credit type with an attainment measure that includes both Revenue and
Bookings for the year. Note that only Revenue credits trigger the commission rule.

For a particular year, assume that the person received a $100 Revenue credit in January
and a $50 Bookings credit in February. Further assume that there are two batches
of orders for March, with the first batch containing two orders (Order 1 and Order 2).

When Incent processes Order 1 in March, the result is a Revenue credit of $50 and a
Bookings credit of $100. Remember, however, that since only a Revenue credit triggers
the commission rule, only Revenue credits are added to the attainment measure.
This means that when processing Order 1, Incent adds only $50 to the attainment
measure, and not $150 (the value of both the Revenue and Bookings credits).

Incent therefore uses $200 as the new attainment value when calculating commissions
after processing Order 1.

The same thing happens with Order 2. Since only a Revenue credit triggers the commission
rule, Incent adds only $50 to the attainment measure. Incent then uses $250 as
the new attainment value when calculating commissions.

However, when Incent starts processing Order 3 as part of the next batch, Incent uses
the total credit attainment of $450 representing the combined values of both Revenue
and Bookings credits. As before, since only a Revenue credit triggers the commission
rule, Incent adds only $50 to the attainment measure.

This processing model could affect commission calculations, especially in the case
when the total credit attainment value after processing an order results in a lower rate
tier (than the expected rate tier if all credits were included with each order).

If you require that all credits be included in the total credit attainment as each order is
processed, you can define additional commission rules that increment the total credit
attainment but pay no commission. This ensures that Incent always uses the current
total credit attainment value when processing each order.