How Effective Dating Affects Calculation
Incent gets information about a Person, Position, Hierarchy, or Named Relationship
based on the Incentive Date of the Order Item being processed.
The Order Item is associated with an Employee ID; the Employee ID specifies the Person and other values used in calculations, such as Target Incentive.
Calculations are based on the hierarchy (and object versions) that are in place on the date of the calculation, and any changes to the hierarchy affect calculations for a particular effective dating period.
Effective dating affects calculation in each of the following areas: People, Relationships, and Draws. During calculation, Incent gathers the following information:
| AREA | INFORMATION GATHERED |
|---|---|
| People | Incent takes the order incentive date and the active version of the Person, and uses the version information to process the order. |
| Relationships | Incent checks only that a Person is associated with a Position in order to receive compensation. If in a hierarchy, how the Position relates to the rest of the hierarchy affects how the other Positions are compensated. |
| Draws | Draws are assigned to a Position. To receive a draw, a Person must be associated with the Position on the last day of the period being finalized (when draws are calculated). |
The following example tracks two incentive dates (January 5th and January 15th),
with a change in reporting structure during January. This example uses the same People and Positions described in A Versioning Example.
January 5th Incentive Date
The first week in January, the reporting structure looks like this
In this hierarchy:
• Julie Peterson and John Jennings report to Joe Smith.
• Randy Lee reports to Julie Peterson.
• Randy Lee has a non-recoverable draw payable at the end of the month.
The following incentive is granted:
On January 5th, incentives are calculated, granting Randy Lee a commission that rolls
up to his boss, Julie, and her boss Joe.
January 15th Incentive Date
On January 12th, Randy Lee begins reporting to John Jennings.
Randy moves out of the Position under Julie and into a new Position under John.
The following incentives are granted:
• Randy is granted a commission on January 15th that rolls up to John Jennings and
to Joe Smith.
• Because Randy is in a new Position, he will not eligible for the non-recoverable
Draw from his former Position that would have been awarded on the last day of
January.