Compensation Plan
What is a Compensation Plan
A Compensation Plan defines the rules, criteria, and formulas used to calculate incentives, bonuses, and commissions within the Apparound SPM (Sales Performance Management) platform.
Each plan represents a logical and temporal configuration that establishes:
- Who participates in the plan (participants and partners of the organization)
- Which transactions are considered in the calculations
- How performance is evaluated
- How earnings and payouts are calculated
- When the plan is active (periodicity and validity dates)
Conceptual Model of a Compensation Plan
Add and Edit a Plan
In workspace SPM - Compensation plans - Plan you can create a new plan by clicking on "Add plan" and edit an existing one by click on the pencil icon next to a plan. There are three main sections/tabs:
- General Settings
- Filters
- Formulas
General Settings
This section contains the general information and metadata of the plan.
| Field | Description |
|---|---|
| Code | Unique and unchangeable plan identifier (e.g., demo_showcase_compensation_plan) |
| Name | Descriptive name of the plan (e.g., "Demo Compensation Plan 2025") |
| Start Date | Plan start date |
| End Date | Plan end date |
| Periodicity | Calculation frequency (Weekly, Biweekly, Monthly, Quarterly, Annual) |
A button allows you also to define wheter you want to execute automatic scheduling for that plan. These parameters define the plan's duration and execution frequency.
Filters
Filters determine which data are considered in formula calculations. They are divided into two main categories:
| Type | Description |
|---|---|
| Contributors | Choose which type of contributor is used in this plan (Participants or Partners). |
| Transactions | Specifies which transactional data are included in the plan (e.g., sales, energy configurations) |
Each filter includes:
- Code (e.g.,
participants,sales_records,energy_configuration) - Last modification date and modifying user
- Buttons for adding, deleting, or viewing version history
Formulas
Formulas are LUA code blocks defining the logic for incentive calculations. Each formula processes conditions and variables related to sales volume, products, thresholds, or performance.
Formulas are organized into three sequential execution groups:
| Group | Description | Examples |
|---|---|---|
| Performance | Calculates result metrics or preliminary counts | Number of L1 F1 contracts, Number of L3 F6 contracts |
| Earnings | Calculates commissions or monetary compensation | Commission L1 F5 (€), Commission L3 F2 (€) |
| Payouts | Determines totals or final disbursements | Total new activations (€) |
Each formula displays:
- Name and Code (e.g.,
commission_L2_F3) - Last modification date
- Modifying user
- Enable or Disable formulas
- Buttons for version history, delete, and add formula
Formulas within each group run in parallel, while groups follow a fixed order:
Performance → Earnings → Payouts
Overall Workflow
- Define the plan → Create the record with code, name, period, and periodicity
- Apply filters → Limit the set of contributors and transactions
- Execute LUA formulas → Calculate metrics, commissions, and payouts
- Save and schedule → The plan can be executed automatically according to the set periodicity or manually via Runs (Schedules / Executions)
Roles Involved
| Role | Responsibilities |
|---|---|
| SPM Admin | Creates and manages plans, defines formulas and rules |
| Finance / HR | Validates calculation criteria and checks payout results |
| IT / Developer | Supports data integration and LUA formula development |
Available Actions
| Action | Description |
|---|---|
| Add filter / Add formula | Adds a new item to the corresponding section |
| Version history | Shows previous versions of a formula |
| Delete | Deletes the selected formula or filter |
| Save | Saves changes made to the plan |
| Clear / Apply | Clears or applies active filters |
| Cancel | Cancels current changes |
Technical Notes
- LUA formulas are interpreted by the Apparound ICM engine, which calculates outputs based on input variables provided by filters
- Input data comes from transaction and component objects defined in the system configuration
- Scheduled plan executions are managed via an internal job scheduler that respects the set periodicity