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Advanced models
Reference for the advanced commission models: growth, residual, royalty, pool, ranking, scorecard, discretionary and formula, with modifiers and rate tables.
updated: applies-to: 1.1.2.0
The Advanced commission models module of Bitta Commission adds fourteen models to the five core models, plus governed formulas, multi-dimensional rate tables and per-interval calculation. This page lists every model the calculation engine executes, which ones need the module, how each advanced model pays, and how to combine models with modifiers and formulas.
Before you start
- Switch on Advanced commission models in Commission Feature Management. The Model field on Edit Commission Component then offers the full list and the Model Settings group appears. See Optional modules.
- You need the Bitta Commission Plan Designer permission set.
- If you switch the module off later, components created while it was on keep calculating, but new advanced components and model changes are refused.
Models and how they are calculated
| Model | Module | Calculated | Rate column |
|---|---|---|---|
| Flat Rate, Progressive Tier, Tiered Rate, Retroactive Tier | Core | Per sale | Rate % |
| Flat Amount | Core | Per sale | Amount |
| Per Unit | Advanced | Per sale | Amount |
| Formula | Advanced | Per sale | Rate % (the RATE variable) |
| Bonus, SPIFF, Scorecard, Discretionary, Pool, Ranking, Guarantee, Draw | Advanced | At period close | Amount |
| Growth, Residual, Royalty, Manager Override | Advanced | At period close | Rate % |
- Per-sale models are priced by every calculation run on the cumulative base of the period.
- Period-close models never price a single sale. A calculation run records a zero, measurement-only earning for them, and Close Commission Period calculates the whole period. Closes run base models first, then manager overrides, then guarantees, then draws, and append only the difference from what is already recognized. See Bonuses and SPIFFs.
- Calculation Interval in Model Settings switches Flat Rate, Progressive Tier, Retroactive Tier, Flat Amount, Per Unit and Formula from Per Event to Per Interval, so the whole period base is priced once at close. Tiered Rate has no per-interval form because it depends on the order of sales.
- For period-close amount models, Amount Means on Commission Rates says what the single amount pays, for example "Pool amount per period" or "Prize pot for percentage rank shares".
NOTE
The model list in the code also contains the values Margin, Recurring, Team, Overlay, Rollup, Cap, Minimum, Matrix and Point Based. The calculation engine does not execute them and the component editor does not offer them. For those needs use the Gross Margin and recurring revenue measure bases, additive credits, the period cap and floor modifiers, multi-dimensional rate tables or a formula.
Growth, Residual and Royalty
- Growth pays the rate on the uplift of the period base over a baseline: Baseline Value when it is above zero, otherwise the same measure in the Baseline Period (blank uses the period immediately before). A Condition Value sets a minimum growth percent. Example: a base of 12,000.00 against a baseline of 10,000.00 at 5 percent pays 100.00.
WARNING
Without a baseline value or a measured baseline period, the whole period base counts as uplift and is paid at the rate, unless a minimum growth percent is set. Decide with your compensation owner how the first period should pay.
- Residual pays the rate on recurring revenue measured in the period, for sources dated within Residual Months of the start date of their recurring contract. A contract that is no longer active, or a source after the contract end date, pays nothing.
- Royalty pays the rate on the credited base of the Licensed or Referred Participant, or, when a Credit Strategy Filter is set, on the payee's own credits with a matching strategy code.
Pool and Ranking
A Pool shares the pool amount per period across the eligible participants assigned to it. A participant is eligible with a period base above zero and at least the Minimum Base. Pool Allocation decides the split: Share of Base in proportion to each base, Equal Share, or By Rank with rank share lines. Example: a pool of 3,000.00 by Share of Base with bases of 6,000.00, 3,000.00 and 1,000.00 pays 1,800.00, 900.00 and 300.00. Rounding is distributed so the parts add up exactly to the pool.
A Ranking pays the top ranks from a prize pot:
| Setting | Options |
|---|---|
| Ranking Method | Top N pays the rank share lines to the top ranks. Percentile pays each participant by the highest percentile band reached (100 is the top participant, 0 the last). League ranks each peer group on its own, formed by League Source: Primary Team, Country/Region or Participant Type. |
| Ranking Basis | Period Base, Attainment Percent (needs a positive target) or Relative Improvement over the Baseline Period (needs a positive baseline). |
| Minimum Participants | How many eligible participants a ranking, or each league, needs before anyone is paid. |
| Timed Window | Turns the ranking into a contest over Window From to Window To. |
Tied participants share the combined prizes of the positions they hold. Example: a pot of 1,000.00 with rank shares of 50, 30 and 20 percent pays 500.00, 300.00 and 200.00 to the top three.
Save the component first, then choose Rank Shares and Mix Lines to open Commission Model Lines. Each rank share line has a rank, a share percent of the pot and, for rankings, an optional fixed prize that takes precedence. Rank share percents must not total more than 100.
Scorecards
A Scorecard pays the target incentive times the weighted score of approved objectives. The target incentive is the participant's period target when one is set, otherwise the component amount.
In Tell Me, search for Commission Scorecard Entry and choose the Component, Participant No. and Period.
Enter each objective with a description, a weight and a Score Percent between 0 and 150. Weights must total 100.
Choose Submit. A different user chooses Approve or, with a rejection reason, Reject.
The next close pays, for example, objectives scored 100 and 120 percent at equal weight on a 1,000.00 target incentive: 1,100.00. While any objective is still open, the close keeps the amount already recognized.
Discretionary earnings
A Discretionary component lets an authorized user award a controlled amount, or a percent of a base, with a reason and a second person's approval.
- Publish a plan version with a Discretionary component. The component amount is the period budget per participant (zero means no budget). Optionally add discretionary type budget lines with Rank Shares and Mix Lines.
- In Tell Me, search for Discretionary Commission Earnings and create an entry: participant, component, period, type, reason, description and either an Amount or a base and Percent.
- Choose Submit. A different user chooses Approve; the approval must fit the period budget. Reject needs a rejection reason on the line.
- Choose Apply to Earnings to append every approved entry of the same component and period through a governed close run.
Entries move through Draft, Submitted, Approved, Rejected and Applied. Supersede replaces an entry that is not applied yet with a new draft copy; the old entry no longer counts against the budget. Each applied entry becomes its own earning with its reason and approver recorded in the calculation trace.
Modifiers
The Modifiers group on the component editor is optional; leave the defaults for the plain model.
| Modifier | What it does |
|---|---|
| Band Basis | Rate bands bounded by the cumulative amount or by attainment percent of the period target. |
| Hurdle Mode, Hurdle Basis, Hurdle Value | Cliff pays nothing until the hurdle is reached, then the full cumulative entitlement. |
| Period Cap Amount, Period Floor Amount | Maximum and minimum cumulative entitlement per calculation period; the floor applies once the participant has any base. |
| Weight Mode | Multiplier applies the component weight as a factor, so the version weights need not total 100. |
| Gate Component, Gate Attainment Percent | Pays only when another component reaches the gate attainment. |
| Pair Mode, Paired Component | Best Of or Worst Of recognizes only the higher or lower of two components per period. Both components must name each other. |
| End-Dated Participants | Stop After Version End credits nothing new after the participant version ends and prorates caps and floors. |
| Base Formula | An active formula that reshapes the cumulative base before the rate applies. |
The modifiers are applied when a calculation run prices a sale, and each one that changes the result leaves a MODIFIER or BASIS row in Tier Calculation Details. Period-close models and per-interval components are priced by the close, which does not apply them.
Multi-dimensional rate tables
For Flat Rate, Flat Amount, Per Unit and the three tiered models calculated per sale, Rate Dimension on Commission Rates adds a second dimension that selects the rows for each participant: Currency, Country/Region or Participant Type. Each value needs its own complete schedule in Dimension Value, and a row with a blank value applies to every other value. A participant with no matching row and no blank row stops the calculation with BAACOMM-PUB-PROV-RATE-003.
Formulas
Commission Formulas holds governed, versioned formulas. An expression can use BASE, TARGET, ATTAINMENT_PCT, RATE, the component measure code and other active formulas, numbers and arithmetic, comparisons, AND and OR, and the functions IF, MIN, MAX, SUM, AVG, ROUND, ROUNDUP, ROUNDDOWN, ABS, NOT, SAFEDIV and CLAMP.
- Create a formula with an expression, for example MAX(0, BASE - 0.5 * TARGET).
- Choose Validate to parse it and report the first problem.
- Choose Activate to freeze its normalized text and hashes and make it available to components. Circular references are refused.
- Use it as the Earning Formula of a Formula component, or as the Base Formula of another component.
Tokens shows the compiled tokens and Dependencies the formulas and measures it references. Retire stops new components from selecting it; published plan versions keep their frozen copy. For what the engine does not cover, see Known limitations.
What's next
Decide who receives credit for each sale: Crediting and splits.