Glossary
Contributor
Participants and Partners are what can be defined as "contributors".
- Participant: is the individual for whom results and compensation are calculated within the plan.
- Partner: is the organization for whom result and compensation are calculated within the plan.
Compensation Plan
The compensation plan defines the rules used to calculate variable pay for contributors. It includes performance, earning and payout formulas, components, and thresholds.
Transactions
Transactions represent the quantitative inputs used to calculate contributors’ performance. They may include sales, orders, appointments, contracts, or other relevant events. Each transaction has one or more properties (e.g., date, value, channel) and can be filtered or aggregated through formulas.
Components
Components represent sections or logical modules of the compensation plan, often associated with a specific formula or objective (e.g., “quarterly bonus,” “base commission,” “premium incentive”). They are used to break down the calculation of earnings and payouts into independent blocks.
Filters
A mechanism that allows selecting only a subset of input data to be used in formulas. For example, transactions can be filtered by date, channel, or product type.
Formula
Formulas are expressions written in the Lua language. They are used to calculate:
- Performance: performance indicators based on transaction data.
- Earning: the amount accrued based on performance.
- Payout: the amount to be paid to the contributor, possibly after applying thresholds or caps.
Formulas can access the properties of transactions, components, and contributors and are executed for each contributor during the plan calculation.
Plan Execution Schedules
Schedules automate the execution of the plan at specific times (e.g., end of month, first day of the quarter, etc.).
Plan Execution
An execution represents a temporal instance in which a plan is calculated for a given reference period (e.g., "January 2025"). During execution, filters are applied, transactions are read, formulas are evaluated, and results are stored for each contributor.
Execution Pipeline
The execution pipeline is the structured process that defines the sequential steps of plan calculation. It consists of three main steps:
- Initialization – Data loading and preparation of the execution context.
- Filter – Apply filters on transactions and contributors to determine who and what should be included.
- Formula Execution per Participant – Each participant is processed in parallel: formulas are executed to calculate performance, earning, and payout.
Plan Periodicity
The periodicity is the "heartbeat" of your plan. It defines the basic time interval for which you want to calculate compensation (e.g., monthly, quarterly, yearly).
Options include: weekly, biweekly, monthly, quarterly or annual.
This choice is crucial because it identifies the intervals (e.g., "January 2025", "Q1 2025") for which aggregated results are shown.