Glossary

Accelerators

An accelerator payment is an overachievement payment for attainment over 100%. Commission rates and quota rates move to an accelerated rate when the user achieves the associated quota. Sometimes people use this term like ramped rates and would qualify the idea of the rate to be paid over quota in another way such as: "Over quota accelerator".

Attainment 

Attainment is the degree to which an incentive measure is met for a measurement period. Attainment can be in decimals, whole numbers, or a currency.

Attainment Percent (aka Performance)

Attainment percent is the achievement relative to an incentive measure, most commonly quota.

Base Salary

A base salary is a fixed payment amount that can be paid monthly, semi-monthly, weekly, depending on the company's policy.

Calendar Year 

Within SimplyComp, is how you define your Fiscal Year for calculations. 

Cancellations

When orders are cancelled the commission and bonus payments that have been made are usually no longer considered earned. A policy should be put in place to recover any payments that were made.

Commission Rate

The commission rate is the rate applied to the credit result for payment. It can be expressed as percent or dollars.

Compensable 

An event which can be or will be compensated. This is typically Orders, Bookings, Invoices, or meetings.

Compensable Events 

Within SimplyComp, is where you define events payable or creditable. 

Compensable Reports 

Within SimplyComp, is where you manipulate your data to produce the your expected compensation results. 

CSV

Stands for Comma Separated Values, which is a plain text file that stores data. CSV allows you to import your deals or releases without having to use a local file. 

Crediting 

The process in which you determine which participant receives credit for the sales event and how much will count. For companies with complex selling processes it is best practice to credit multiple positions to encourage team work and avoid channel conflict.

Credit Amount

The credit amount is defined within the Compensable Report mapping. Credits determine quota or other measure attainment and will be used to calculate commission or bonus payment.

Credits

The sum of all of the deals that the sales rep is eligible to be paid out on (as determined by the Compensable Report).

Crediting

The process in which you determine which participant receives credit for the sales event and how much will count. For companies with complex selling processes, it is best practice to credit multiple positions to encourage teamwork and avoid channel conflict.

Credit timing 

Credit timing is the point at which the credit is counted. Examples of credit timing include book date, ship date, sold date, invoice date, payment date, and order date. This is configured within the Compensable Report mapping.

Cumulative Attainment 

Amount of credit fulfilled in a given period. For example, if your rule is using a Quarterly attainment period, the Cumulative Attainment will be for all periods within the Quarter.

Deal Based

A specific type of credit rule that allows you to associate a set of filters to a specific payee that defines which deals the sales rep is eligible to be paid out on. For example, Adam Cole can be paid on all deals that have the 'South' territory.

Earnings Calculated 

Is the total earnings for a user or representative for the period selected. It is different than payouts as a user may have earnings in a given period but no payouts. This will occur if the payment frequency is greater than the calculation frequency. For example, if a rule calculates monthly but payouts quarterly.

Filters

Filters allow you to manipulate your reports to only display the results you need to produce results. 

Flat Rate 

A rate that remains constant regardless of the attainment level. Flat rates always result in linear earnings.

Held 

The payment of a calculated commission event has been held or not yet released. Payments are held either because the payment frequency is less frequent than the calculation frequency (e.g. calculate monthly but pay quarterly). For this type of payment, releases are automatic. Payments can also be held and require a manual release. This is applicable if you build Hold/Release rules within the Payment setup of the plan wizard. These deals can be released manually or through an import. 

Holds

The concept of calculating commissions but not yet releasing them to a sales rep. Payments are held either because the payment frequency is less frequent than the calculation frequency (e.g. calculate monthly but pay quarterly). For this type of payment, releases are automatic. Payments can also be held and require a manual release. This is applicable if you build Hold/Release rules within the Payment setup of the plan wizard. These deals can be released manually or through an import.

Hold Balance 

The sum of all held commissions. Note: this amount can span calendar years if there are still outstanding holds.

Lookup Table

Within SimplyComp, this is how you define groups, people, or items that are related to one another. 

Mathematical Formulas

Are formulas within the system that allow you to add, subtract, divide, or multiply between columns. 

Monthly Attainment

The amount of credit fulfilled in a one month period.

MTD Credit

The amount of credit calculated on a Month-to-Date basis, or in between the current calculated month and the current date.

Net Price

Net price is the list price minus discounts and allowances.

Order ID

It should be a universally unique id and is often generated by the source system of the order.   Any compensable event, aka order, with the same Order ID is treated as the same event and the values of changed fields will be updated in subsequent data uploads and recalculation will pick up the new values. This is important in two key areas. First, the Order ID is how SimplyComp can decipher duplicate deals and either update the duplicate or ignore the duplicate. Given this, it is critical that the Order ID is not too broad as to flag unintended deals as duplicates. Second, the Order ID is used to process releases. In this use case, the Order ID is how we match a held record to one being flagged for release. If no match is found, a release can not occur.

Payments 

Within SimplyComp, is where you define how you will be paying out defined events.

Payments Due

References the Earnings calculated and illustrates the payments still pending to your users or sales representatives. 

Performance Percent (aka Attainment %) 

Attainment percent is the achievement relative to an incentive measure, most commonly quota.

QTD Credit 

The amount of credit calculated on a Quarter-to-Date basis, or in between the current calculated quarterly period and the current date.

QTD Monthly Attainment 

The amount of credit fulfilled across ongoing months on a quarterly basis.

Quarterly Attainment 

The amount of credit fulfilled in a single quarter.

Quotas 

Are metrics or goals that can be met to provide an incentive or produce an outcome, such as a commission or bonus. 

Rate Tables

Rate table allow admins to set attainment tiers and pay varying rates according to the tier that the Sales User qualifies for.

Rule Mapping 

Within SimplyComp, is how you link your data to payment and quota rules in order to calculate results for your defined users. 

Sales Crediting 

The process in which you determine which participant receives credit for the sales event and how much will count. For companies with complex selling processes it is best practice to credit multiple positions to encourage team work and avoid channel conflict.

Sales Excellence 

Individual sales performance that is in the top percentile of all individuals whose performance is being measured. The top percentile is determined by the company but it is usually 100 -120%.

Target Variable Pay 

Is the amount of Variable Pay you will be paid if you achieve 100% of your goal. 

Team

When a specific sales rep being paid for a deal is not necessarily the Salesperson tagged to the deal but is part of a broader team and gets credit for the deal anytime someone on that team sells it. For example, if Bob gets credit anytime Bob, Sally, or Beth sell a deal.

Terms & Conditions 

Refers to the rules and legal language that govern the compensation plan. Typically Terms and Conditions define when deals are paid out, what happens if the employee leaves the company, and a dispute resolution framework.

Tiers

Levels of attainment within defining the payment of a compensation plan. Tiers can be set below 100% and above. If setting above, they are typically used as accelerators to award overachievement.

Total Attainment

Total amount of credit fulfilled in a given period.

Variable Pay 

Is the amount of pay that is "at risk". Meaning, it is not a guarantee that you will be paid this amount, rather it is tied to your behavior and is a reward. Typically this takes the form of Commissions and Bonuses. 

Weight 

Weight is used to refer to the relative importance of a measure or factor used to determine a credit or payment amount.

YTD credit

The amount of credit calculated on a Year-to-Date basis, or in between the current calculated year starting January 1st, and the current date.

YTD Monthly Attainment

The amount of credit fulfilled across ongoing months in a one year period. For example: In January, the attainment is 100; In February of the same year that attainment is now 200, and so on in a cumulative process.

YTD Quarterly Attainment

The amount of credit fulfilled across ongoing quarters over a one year period.