This model example showcases how to utilize modeling best practices in the context of the Incentive Compensation process.

Data from a fictional electronics retailer is used to illustrate typical compensation plan structures and showcases how to leverage multi-dimensionality to allow the model to scale as employees and plans are added and modified throughout the fiscal year. It also showcases ways to archive commission statements, effective date employees, and build approval workflows.

Componentization of Compensation Plans

  • Compensation plans are created as groups of components that are calculated in unique ways. Components can be added, changed, or removed dynamically to allow for flexibility in setting the drivers that determine a rep's pay structure.

Snapshotting of Plans and Commission Statements

  • Snapshots allow model admins to archive the pay structure at a point in time and the resulting calculations. This enables them to make changes to plans over time without losing the details of prior plan configurations and the resulting commission statements.

Automation of commission corrections and clawbacks

  • As transaction details from the source CRM is updated with each data load, earned commissions can be updated with the latest information and net adjustments are aggregated in the current month's statement.

Automated draw calculation for new hires and transfers

  • Model admins can create draws that will be added to new hires and transfers into specific sales roles and define the payment amount, frequency, recovery process, and effective periods. When employees are added in those roles, they will automatically earn draws and/or recover the draws against earned commission.
Create new incentive compensation plan components and configure plans based on those components.
Review personal performance relative to others in same role and location.
Analyze commission earnings by different types of commissionable payouts.
Break down the high-level rollup of commission earned against target by location, role, and product.


1.21 GB



Connects to

Incentive Compensation Enablement Data Hub