Draws - Draws tab

A draw is a cash advance for a participant when specified in an offer letter and may either be recoverable or non-recoverable. Draws are usually used for ramping up new sales reps. It ensures the rep will have a steady income during the training period. Express offers two types of Draws to be recoverable or non-recoverable.

NOTE: Draws happen after payments have been calculated. Draw amounts will not show up on the Payments tab in Express.

Draw Type 1:

If a draw of $5000 is established and $2000 in commission is earned, a draw amount of $3000 will be paid to get the rep to the agreed $5000 minimum.

In the below example, this is a Draw Type 1. Jackson had a payment of 234.12 in the January period and has a draw of 5000. The draw that was paid is 4765.88 because the total amount that Jackson should be paid is 5000.

Another way of thinking of Draw Type 1 is:

Draw Type 2:

If a draw of $5000 is established and $2000 in commission is earned, a draw amount of $5000 will be paid resulting in a $7000 payment.

In the below example, this is a Draw Type 2. Tom had a payment of 702.36 in the January period but has a draw of 5000. The draw that was paid is 5000 for the total amount that Tom should be paid out for this period to be 5702.36.

Another way of thinking of Draw Type 2 is:

How to set up Draws in Express:

1. Express > Results > Manage Results > Draws
2. Click on the "Add a Draw" button > Select the User

   

   NOTE: Draws can only be added for the current period moving forward. No adjustments on past period draws can occur.

   

3. You will need to enter in the draw amount > click on Save

   Month: The period of the draw. The dark gray box indicates the current period.

   Draw Amount: The amount of the draw.

   Start Recovery: Recovery is the amount of the draw balance being subtracted from the current payout. When an Admin clicks "Start Recovery", the system will start to have the rep pay the company back for the draw amount. Please Note: Draw recovery starts the period after the check box has been chosen. Recovery will continue until the Draw balance = 0. There is no way to turn this off once it has been turned on.

   For example, if a rep has a Draw Balance of 5000 and in the current period has earned a Commission of 7000, if Start Recovery is selected, the rep will only be paid 2000 as the other 5000 has been paid back to the company.

4. Go to Results > Run Calculations > Show Steps > Re-run Step 3 only (i.e Finalize Payment). This will update the draws on the Dashboard and the Commission Statement.

Draw Results toggle:

The system defaults to having the radio button "Draw Results" as selected. This shows the current period overview.

Payment Prior to Draw: This is the amount of commissions (i.e. current period payment) that the rep has received before receiving the draw amount has been applied.

Draw Paid: This indicates how much the draw was paid out to the rep in the current period only. 

Total Payout: This is the sum of Prior to Draw (i.e. Commission/Payment) + Draw Paid

Draw Balance: This provides a balance of how many draws were given out year-to-date.

Recovery Results toggle:

When an Admin clicks the radio button called "Recovery Results" this will show details of payment + draw recovery. This toggle will also allow Manual Draw Adjustments to be made on the draw balance.

Eligible Payout: This amount is before the recovery has occurred. This is the amount the rep would have received without the draw recovery.

Recovery: This is the amount that is being recovered in the current period. This option can be adjusted. (see Manual Draw Adjustments)

Total Payout: This is the sum of Prior to Draw (i.e. Commission/Payment) + Draw Paid

Draw Balance: This provides a balance of how much draws were paid back year-to-date. This option can be adjusted. (see Manual Draw Adjustments)

Recovery Rule:

This allows Admins to exclude different types of Payment Categories from the recovery amount. For example:

A rep has earned in the current period:

5000 in Commission

2000 in Bonuses

1000 in Contest

Total Payout: 8000

Draw Balance: 9000

Without excluding any payment category, the rep would get a payout of 0 and there would still be a 1000 draw balance.

However, Admin's can decide to exclude certain types of payment rules. If the admin excludes Bonuses the payout would instead be:

2000 in Bonuses (excluded from recovery)

Total Payout: 2000

Draw Balance: 3000

How to Set Up Recoverable Draws in Express

Recoverable draws allow administrators to deduct advances from future payouts when a rep earns enough to cover the balance. Follow the steps below to configure and recover draws:

Steps to Recover Draws:

1. Navigate to the Plan Section:

   • Go to Plan, then to Step 1: Define Plan, and click on Add a Draw.
   • 

2. Access Recovery Results:

   • Switch to the Recovery Results toggle to enable the recovery setup view.
   • 

3. Edit the Recovery Amount:

   • In the Recovery column, click the Edit button for the relevant month.
   • 
   • Enter the desired recovery amount to deduct from the total payout.

4. Save Recovery Adjustments:

   • Once you input the recovery amount, click Save and Close to finalize the adjustment.
   • 

5. Start Recovery:

   • In the Start Recovery column, check the checkbox for the applicable month to initiate recovery.
   • Note that this starts the recovery process from the following period onwards.

6. Save All Changes:

   • After completing the setup, ensure to save all changes made to the draw and recovery configurations.
   • 

By following these steps, you can ensure recoverable draws are properly configured and applied, enabling a seamless adjustment of payouts while managing draw balances effectively.

Moving to a New Fiscal Year

When moving to a new fiscal year, any remaining draw balances will still show within the Results > Manage Results > Draws section of Express, but you will have to toggle between years to see the draw amounts. So the amount will be there, it just won't display in the UI without changing the year. It is technically automatically carrying over, you just have to toggle the years to see the previous year's draw amounts.