Draws and guarantees

A draw or guarantee makes sure a participant receives at least a set amount per period, even when commission is lower. At period close, Bitta Commission tops the participant's other earnings up to the floor and, when the draw is recoverable, recovers the advance from later periods in which earnings exceed the protected amount. This page shows you how to set up both models, how recovery is calculated, and how finance follows and waives balances on Commission Draw Balances and Commission Draw Ledger.

Before you start

• Switch on Advanced commission models in Commission Feature Management. Draw and Guarantee are advanced models.
• The floor is compared with the participant's other earnings of the period in the same plan version, so put the commission components in the same version as the draw.
• Agree the recovery policy with your finance and legal owners first. Rules on recovering advances from employees differ between jurisdictions; the app applies the policy you configure, it does not decide it.

The setup wizard can create a draw plan with the plan style Draw against commission: a percent-of-sales component plus a Draw component, recoverable when you select Recover the draw from later commission. When you choose Finish, the wizard switches on Advanced commission models and approves and publishes the plan. See Run the guided setup.

How a draw is calculated

Guarantee and Draw use the same calculation at period close:

1. The floor is the amount on Commission Rates. A positive target on the participant's calculation period row replaces it for that participant.
2. Other earnings are all earnings of the participant in the period under the same plan version, except guarantees and draws.
3. If other earnings are below the floor, the top-up is the difference.
4. If the component is Recoverable, there is no top-up this period and an advance is outstanding, the app recovers part of the excess:
   • The protected amount is the larger of the floor and Protected Minimum. Only earnings above it are available.
   • Recovery Percent of the available excess is taken; zero means 100 percent.
   • The recovery never exceeds the outstanding balance or, when set, the Recovery Limit Amount.
5. The period entitlement is the top-up minus the recovery. The close appends the difference from what was already recognized.

Guarantees are closed before draws, after base models and manager overrides, so the floor compares against the final earnings of the period.

Setting	Non-recoverable	Recoverable
Top-up below the floor	Paid and kept. No draw ledger entry.	Paid as an advance and recorded on the draw ledger.
Later period above the protected amount	Nothing is recovered.	Part of the excess is recovered until the advance is repaid.

Set up a draw

1. On Commission Components of the Draft version, choose New Component and set Model to Draw or Guarantee.
2. Set the recovery options in Model Settings:

Field	What it does
Recoverable	The top-up is an advance recovered from later periods' earnings above the protected minimum. Only Guarantee and Draw components can be recoverable.
Recovery Percent	The percent of the excess recovered each period, between 0 and 100. Zero recovers the whole excess.
Recovery Limit Amount	The maximum recovered per period. Zero means no limit.
Protected Minimum	The earnings a participant keeps before any recovery is taken.

3. Choose OK, then Rates. Amount Means reads "Draw amount per period (a participant's period target overrides it)" or "Guaranteed minimum per period (a participant's period target overrides it)". Enter the floor in Amount (Company Currency) and choose Save Rates.
4. Submit and publish the version. Draws are calculated by Close Commission Period. See Bonuses and SPIFFs for the close steps.

Worked example

A recoverable draw of 2,000.00 per period on top of a 5 percent commission, with no recovery percent, limit or protected minimum.

Period	Sales	Commission	Draw earning	Draw balance after close
1	20,000.00	1,000.00	1,000.00 (advance)	1,000.00
2	30,000.00	1,500.00	500.00 (advance)	1,500.00
3	60,000.00	3,000.00	-1,000.00 (recovery)	500.00

In period 3 commission exceeds the protected amount (the 2,000.00 floor) by 1,000.00, which is recovered from the outstanding 1,500.00. In each period the participant receives at least 2,000.00 in total. With a non-recoverable draw, periods 1 and 2 pay the same top-ups and nothing is recovered in period 3.

Commission Draw Balances

In Tell Me, search for Commission Draw Balances. The page shows the outstanding recoverable advance of each participant, rebuilt from the draw ledger after every period close and waiver.

For each participant and currency you see the Recoverable Draw Amount, Recovered Amount, Waived Amount, Remaining Balance, the Oldest Origin Date, the Draw Policy Code (the component that moved the balance last), its Protected Amount, the Next Recovery Date and the latest recovery exception. If a period closes with an outstanding balance and nothing is advanced or recovered, because earnings stayed within the protected amount, the app raises the exception BAA-DRAW-RECOVERY-DEFERRED so finance can follow up.

Commission Draw Ledger

Choose Draw Ledger on the balances page to open Commission Draw Ledger.

Entry Type	Effect on the balance
Advance	Raises the recoverable balance (positive Signed Amount).
Recovery	Lowers the balance from later earnings (negative).
Waiver	Writes off part of the balance (negative).

Entries are append-only and hashed. A repeated or true-up close appends only the difference from the advance and recovery already recorded for the period, so it never double counts. Choose Earning to open the guarantee or draw earning that moved the balance.

Schedule recovery of an advance

Normally an advance is recovered only from later earnings above the protected amount. To recover it in full from a date, for example when an agreed draw period ends:

1. On Commission Draw Ledger, select an Advance entry and choose Schedule Recovery.
2. On Schedule Advance Recovery, enter the Recover On date and choose OK. The date cannot be before the advance date (BAA-DRAW-RECOVER-ON). Clear the date to go back to recovery through the draw policy alone.

From that date, the next draw period close recovers the remaining advance in full instead of only from earnings above the protected amount. An amount it cannot recover is raised as the exception BAA-DRAW-RECOVERY-OVERDUE, so finance can recover or waive it. The Recover On column on the ledger shows the scheduled date.

Waive a draw balance

When the business decides not to recover part of an advance, for example when a participant leaves:

1. On Commission Draw Ledger, select an entry of the participant and component and choose Waive Balance.
2. On Waive Draw Balance, enter the Amount to Waive, the Waiver Date and a Reason, and choose OK.

The amount must be positive and cannot exceed the Outstanding Balance of that component (BAA-DRAW-WAIVER-BALANCE). The waiver is appended as a Waiver entry; the original advance is never deleted.

How draws net in settlement

A draw or guarantee produces normal earnings on its component: an advance is a positive earning and a recovery a negative earning in the period it is taken. These earnings flow through eligibility, balances and settlement like any other earning, so a settlement shows commission and the draw result together. The draw ledger is a separate record of the advance position. See Settle commission and Commission reports.

What's next

See the other models in the module: Advanced models.