Recipe - How To Configure Draw Plans
This article applies if you require draws, but payees can receive commissions from multiple plans, and commissions from all these plans should be taken into account when calculating draw amounts.
Draws & Multiple Plans
If you have a single plan, you can configure draws on the Calculations tab of your plan. Sales Cookie will automatically calculate draw amounts when you run calculations. In this example, we configured a recoverable draw on a single plan.
However, this approach is not sufficient if payees can receive commissions from multiple plans, and commissions from all these plans should be taken into account when calculating draw amounts.
For example, suppose that your payees are eligible for both a monthly and quarterly plan. If commissions earned from both plans should be taken into consideration when calculating draw amounts, then configuring draws per-plan does not work. We must configure a separate draw plan which checks how much payees earned in commissions from both plans, and ensures the draw guarantee is met. If your draws are recoverable, our draw plan should issue advances and repayments.
Becoming Familiar With General Plan Setup
We first recommend first reading this article to become familiar with fundamental mechanisms of plan configuration.
Specify Plan Targets
The goal here is to ensure the plan targets the right individuals or teams. For draw plans, you could target users having a tag of "Draw". Follow this article to specify plan targets.
Select Eligible Transactions - Filtering
The goal here is to ensure the plan only processes eligible transactions based on a criterion. Follow this article to filter transactions.
Your draw plan does not need to process sales transactions. One option is to create a saved query which does not select any transaction. In this example, our saved query finds transactions whose unique ID is equal to "nothing". This ensures no transactions are selected.
You can then apply this saved query to your plan.
Define Attainment
The goal here is to define attainment for your plan. For draw plans, we won't process transactions, so there is no attainment. However, we do want incentives to trigger, so make sure to select this option.
Alternatively, you could change the performance metric to be a Custom Metric on the Overview tab of the plan.
And configure a global attainment value of zero for all eligible targets on the Calculations tab of the plan.
Next, create one attainment level like this.
Define Rewards
To calculate draw amounts, we need to know how much a rep has earned in commissions for the period we are calculating for. For example, suppose we are calculating draws for the month of March. We want to see how much commission was earned from other plans whose end date matches ours.
We can use a global reward to query amounts earned from other calculations whose end date matches ours. Rewards are filtered to the current payee when querying them.
Non-Recoverable Draws
For non-recoverable draws, we just need to provide the minimum guarantee. If a payee earned less than the draw amount, we issue the difference. Otherwise, if a payee earned more than the draw amount, we issue an amount of zero. Simply add this to the formula above.
Recoverable Draws
For recoverable draws, things are more complex. First, check this advanced option. Any draw amount we issue (whether negative or positive) should be tracked as a recoverable draw amount. It will count towards a payee's recoverable owed balance.
Next, calculate the payee's recoverable owed balance. We just need to sum all previous recoverable reward amounts. Those recoverable amounts consist of all prior draw advances or repayments. They may have been calculated by this plan or entered manually as recoverable rewards.
Next, issue a recoverable advance or repayment. If a payee earned less than the draw amount, we need to issue an advance. If a payee earned more than the draw, we need to issue a repayment. Let's get the recoverable draw amount.
Next, handle advances.
Next, handle repayments. We want to repay the draw balance using commissions earned this period. If there is no owed recoverable balance, we can exit immediately because no repayment is due. If nothing was earned in commissions this period, we can also exit immediately because there is nothing we can use towards repayment. Otherwise, we can use commissions earned this period to repay the balance. Obviously, we should not repay more than the balance. Note the "minus" sign below. A repayment is a negative recoverable commission.
Add Dependencies
- Edit your draw plan
- Go to the Calculations tab
- In advanced options, add a dependency on other plans
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