Holds Costs and Draws Glossary

Held

The payment of a calculated commission event has been held or not yet released. Payments are held either because the payment frequency is less frequent than the calculation frequency (e.g. calculate monthly but pay quarterly). For this type of payment, releases are automatic. Payments can also be held and require a manual release. This is applicable if you build Hold/Release rules within the Payment setup of the plan wizard. These deals can be released manually or through an import.

Holdback

A holdback occurs when some of the payment until another event is completed.

Hold Balance

The sum of all held commissions. Note: this amount can span calendar years if there are still outstanding holds.

Holds

The concept of calculating commissions but not yet releasing them to a sales rep. Payments are held either because the payment frequency is less frequent than the calculation frequency (e.g. calculate monthly but pay quarterly). For this type of payment, releases are automatic. Payments can also be held and require a manual release. This is applicable if you build Hold/Release rules within the Payment setup of the plan wizard. These deals can be released manually or through an import.

Cost of Sales

A relative measure of internal costs per each sale. The internal costs are generally those that are directly related to making the sale.

Costing

Costing is an analysis done to estimate the cost of the sales compensation plan(s). This is also known as modeling or cost modeling.

Net Price

Net price is the list price minus discounts and allowances.

Draw

Payees who receive advances on future commissions. Typically this type of rule is used when hiring a new sales rep and assists with ramping the sales rep to their full earning potential. Within Xactly Express, draws are defined at the person level and can either cover the gap between earned and the draw amount or pay an absolute amount. Additional rules are used to define the recovery (if applicable) of the draw amount).

Draw Balance

The amount of draws paid out to a specific rep has not yet been recovered. Note: The Draw Balance can be manually reduced (or zeroed out) by the Admin or will decrease as the Sales Rep starts earning commission and automatic recovery occurs (depending on the recovery rules that are defined).

Guarantee (aka Non-recoverable Draw, Bridge)

A guarantee is a cash advance for a participant when specified in an offer letter and is non-recoverable.