To define the Formula Wizard, proceed as follows;
- Define the Commission Rule (1). This field enables defining the commission as a set of rules which determine the commission incentive. Activating this field means setting parameters for incentive calculation.
- Click on Commission (2) to open the Formula Wizard for the selected Commission Element (3).
The Formula Wizard (2) includes a five‑step procedure (4) for the creation of the commission formula. You are required to define five characteristic features in order to determine the commission equation. .
Each feature includes characteristics to be selected. Each feature presents the available characteristics in a specific screen. The contents of each screen is dependent on the type of the Commission Element.
The Commission Type screen (1) displays four categories or types of commission. The first three types calculate the commission in accordance with pre-defined formulas.
- Commission (2): A commission is an income payment based on a rate or percentage (usually of the selling price) of the product or service. The commission shall be paid at the transaction level, regardless of quotas.
- Bonus (3): Additional compensation given as a reward for achieving specific goals set by the company, or for dedication to the company. The bonus shall be paid in accordance with the designation of quotas or tiers.
- Competition (4): This incentive is defined as a bonus paid to the representative in accordance to the achievement ranking position vis‑a‑vis other representatives in the competition.
- Custom Formula (5): The custom formula selection requires that you build your own commission/rules. We recommend that you use this option only when the pre‑defined formulas do not support your requirements.
You must be aware that selecting any of the first three types ((2) to (4)) changes the Parameters (6) characteristics.
Just as well, selecting Custom Parameters (5) removes all characteristics from the Wizard besides Commission Type (1).
Proceed as follows:
- Select one category
- Press Next (7) to move on to the next characteristic: By What Field (8).