Oracle Incentive Compensation

Demo

Presenter: Abhijit Chakraborty

 Agenda

Overview of Oracle Incentive Compensation(OIC)

Key Elements

Components Used

Demonstrate the standard OIC flow using a pre-configured instance

Reports

Gather High Level Requirements

 OIC Flow

Customer
Salesrep meets Provides Quote
Accepts the
Customer to Customer
Quote

Customer
Products are Sales Order is
places the
shipped booked
order

Incentive is
Invoice is Payment is
calculated for
issued Received
the salesrep

Payment of incentive to
the salesrep
 OIC Process

Data Import for: Determine who should Manual Transaction Classify transactions Trial Payments Out-of-the-box
get credit for a Adjustments Apply Draws/Caps Commission Reports
Transactions Roll Credits up the
given transaction compensation hierarchy Approve & Finalize
* Account Receivables Mass Adjustment of
Transactions Payments
* Order Management Identify Rate Table
Order/Invoice Credit Export Payments to
* External Systems Calculate earnings
Split Adjustments Oracle Payroll or
* Excel Files based on Plan
Payables
Sales reps, Update Balances
Create payment file
Customers, Products, for external systems
Quotas

Calculate
Collect Crediting Transaction Post Payment Report
Classify
Adjustments
Rollup

Populate
Load
Pay
Calculate

Update
Balance

4
 Key Elements

Role

Compensation Plan

Plan Element

Eligible Rate
Products Formula
Table
(Revenue Class)

What? How? How Much?

 Sales-Person Hierarchy

Murcray, Scott
(Manager)

Lillie, Tim Palmer, Joan Race, Joe Marshall, Kirsten

(Sales Rep) (Sales Rep) (Sales Rep) (Sales Rep)

OIC_US_ALL OIC_US_East
 Components Used

Comp Plan Start date

Nanometrics Comp Plan1 01-Jan-16

Plane Element Start date Formula Eligible Prod Rate Table(%)

Nanometrics PE1 01-Jan-16 Formula_01 NanoCD Suite Rate_Table_01

Rate Dimension RD_01

Type Amount

Tiers From To Rate

0 1000 10%

1000 3000 20%

3000 5000 30%

5000 999999 40%

Product Component Rule Set

NanoCD Suite NanoDiffract Clssification Rule Set1

NanoStation

NanoGen
Compensation Plan
 Manual Transaction

Resource Name: Marshall, Kirsten

Transaction Amount: 2600
Eligible Product: NanoCD Suite
Component: NanoStation
Load Transaction
Run Calculation
 Check Compensation & Roll Up

Sales person commission calculated and also roll up to the manager based on
Formula.
 Explanation

Explanation of results
Trx Amount = $2600
Input Expression = Commission Headers.TRANSACTION_AMOUNT
Output Expression = Commission Headers.TRANSACTION_AMOUNT*Rate Table
Result/
(1+Commission Lines.ROLLUP_LEVEL)
Rate Table:
10% : 0 - 1000
20% : 1000 - 3000
30% : 3000 - 5000
40% : 5000 - 99999999
As Input expression = $2600, the commission rate for both salesreps are 20%
For Marshall, Kirsten, as the rollup level is 0 the Commission amount = $2600 * 20%
/ (1 + 0) = $520
For Palmer, Joan (Manager), he received the credit due to rollup (Palmer,
Joans Sales Compensation Group is a parent of Marshall, Kirsten's Compensation
Group), the rollup transaction created for Palmer, Joan (Manager) has a value of 1
in Commission Lines.ROLLUP_LEVEL
As a result, Palmer, Joan has commission amount of $1500 * 20% / (1 + 1) = $260
 EARNING STATEMENT Report

The Earnings Statement Report gives you a complete look at all of the transactions
for a resource for a selected period. These transactions include both direct credit
acquired by the resource as well as indirect credit acquired by the resource through
his or her direct reports.
 TRANSACTION DETAIL Report

The Transaction Details report shows transactional details for a specific resource. It
is primarily used by Compensation Analysts. The report can be run to show results
of any specified period and transaction status.
 YEAR To DATE Report

The Year to Date Summary is an overview of a resource's achievements,

commission and bonus earnings and advances or draws.
 Attainment Summary Report

The Attainment Summary is a snapshot of salespersons achievement and earnings.

Achievements are shown against interval to date quota and annual quota. Earnings
totals are broken down by period to date and interval to date.
 More Reports

Performance Detail Report

The Performance Detail Report provides quota attainment detail not available in other reports. It contains
target, attainment, and attainment to target % at the plan element and eligible product level for a resource. It
contains a chart that displays total quota to total attainment amounts. The report is accessible by
Compensation Managers, Compensation Analysts as well as by Incentive Compensation Users and their
managers.

Commission Statement

The Commission Statement report includes a Balance Summary that shows balances, earnings, recoverable
and non-recoverable amounts, payment due and ending balance. In the Commission Summary section you
can select details for commission, bonus, or payment adjustments. This section also includes a graph.
Resources and their managers can access the Commission Statement via their dashboard.

Compensation Group Hierarchy Report

The Compensation Group Hierarchy report displays compensation groups and the resources in each, and
also shows the roll up hierarchy of the groups in relation to each other. In the Level column, the number
indicates the level in the hierarchy of the compensation group. A Level 1 group is at the top of the hierarchy,
and is also at the top of the report.

.
Payment
Payment