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How to setup immediate recoverable payment plan with sample data flow (Doc ID 1088212.1)

Last updated on DECEMBER 05, 2019

Applies to:

Oracle Incentive Compensation - Version 12.1.0 and later
Information in this document applies to any platform.


Payment plans are an optional way to set up advance or deferred payments (sometimes referred to as draws) and to define minimum and maximum payments.

This document shows a test case scenario of the affect of applying an immediate recoverable payment plan to payrun worksheets. The data flow examples will demonstrate how the process works.

Data Scenario
Resource has a payment plan to pay an immediate recoverable minimum of $250 each period.

System Profile Current Setting
OIC: Pay by Transaction = No
OIC: Reset Balances Each Year = Yes

Transactions Flow
1. Setup immediate-recoverable payment plan
2. Assign the payment plan to the resource
3. Create manual transactions, load, and calculate JUN-00 period. Total commision is $100.
4. Create payrun for JUN-00 generates payment plan adjustment for $150 so total payment is $250.
5. Commission calculated for JUL-00 period is $1200.
6. Create payrun for JUL-00 with no payment plan since commission earned is greater than $250.
    However, payment total is $1050 which is $1200 - $150 (recovered from Jun-00 payment plan).
7. Commission calculated for AUG-00 period is -$20 (negative).
8. Create payrun for AUG-00 generates payment plan adjustment for $270 so total payment is $250.
9. Commission calculated for SEP-00 period is $110.
10. Create payrun for SEP-00. Commission calculated is only 110 (short by 140 to make 250 minimum).
      However, payment plan amount is 410 which is 140 + 270 (carry over from Aug-00 payment plan).
11. Commission calculated for OCT-00 period is $50.
12. Create payrun for OCT-00 . Commission calculated is only 50 (short by 200 to make 250 minimum).
      However, payment plan amount is 610 which is 200 + 410 (carry over from Sep-00 payment plan).
      Note: the payment plan continues to cumulate because there is not enough commission to recover yet.
13. Commission calculated for NOV-00 period is -$380 (negative)
14. Create payrun for NOV-00 . Commission calculated is negative 380 (short by positive 630 to make
      250 minimum). Payment plan amount is 1240 which is 630 + 610 (carry over from Oct-00 payment plan).
15. Commission calculated for DEC-00 period is -$30 (negative)
16. Create payrun for DEC-00 . Commission calculated continues to be negative 30 (short by positive 280
      to make 250 minimum). Payment plan amount is 1520 which is 280 + 1240 (carry over from Nov-00
       payment plan).
17. Commisison calculated for JAN-01 period is $10.
18. Create payrun for JAN-01. Payment plan ended in year 2000 so not effective for the new year 2001.
      The commission calculated is only 10. There’s no effective payment plan. The system wants to recover
      the FULL amount 1510 from year 2000 instead of continuing to carry over. Payment total is negative
      1510 (-1520 from Dec-00 payment plan plus - 10 from Jan-01 commission).

Note: The net effect is that the payment plan amount will be recover in the next payrun. If there are not enough commission earned to cover the recovery amount, then the payment plan will compensate for that amount.

View full screenshots and complete sql output data flow: 1211ImmediateRecoverableTestCase.pdf


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