Plan Configuration Engine

Understanding Compensation Plans

A compensation plan in SFIM defines the rules that determine how a payee earns variable compensation. Plans are the core of the system — everything else (crediting, calculation, reporting) revolves around them.

Plan Structure

Every plan consists of these layers:

1. Plan Document

The Plan Document is the human-readable agreement sent to payees for acknowledgement. It includes:

• Plan period (annual, semi-annual, quarterly)
• Assigned roles and positions
• Commission structures and rates
• Quota targets and attainment thresholds
• Terms and conditions

2. Commission Rules

Rules define the calculation logic:

IF attainment >= 100% AND attainment < 150%
  THEN commission_rate = base_rate * 1.5
ELSE IF attainment >= 150%
  THEN commission_rate = base_rate * 2.0
ELSE
  commission_rate = base_rate

3. Rate Tables

Rate tables define tiered commission structures:

Attainment Level	Commission Rate
0% – 50%	2%
51% – 80%	4%
81% – 100%	6%
101% – 120%	8% (Accelerator)
121%+	10% (Super Accelerator)

4. Quota Targets

Quotas can be:

• Revenue-based — total sales amount
• Unit-based — number of deals or items sold
• Activity-based — calls, meetings, demos
• Composite — weighted combination of metrics

Plan Builder Walkthrough

SFIM’s plan builder allows administrators to:

1. Select a template — start from pre-built industry templates or blank
2. Define compensation elements — add rules, rate tables, and conditions
3. Set effective dates — plans can overlap with version control
4. Assign positions — link plans to org hierarchy roles
5. Run simulations — test with historical data before activation

What-If Modeling

What-if modeling lets you answer questions like:

• “What happens if we increase the accelerator threshold from 100% to 120%?”
• “How much would it cost to add a 5% SPIFF for Q4?”
• “What if we change territory assignments mid-year?”

The simulator uses historical transaction data to project outcomes without affecting live plans.

Plan Versioning & Effective Dates

SFIM supports multiple plan versions running simultaneously:

• Effective dating ensures the right plan applies to the right period
• Mid-period changes are handled gracefully with prorated calculations
• Audit trail tracks every change with timestamps and user attribution

Best Practices for Plan Design

1. Keep plans simple — complexity breeds errors and disputes
2. Use templates — standardize across roles where possible
3. Test thoroughly — always run simulations before going live
4. Document everything — clear plan documents reduce disputes by 40%
5. Review quarterly — plans should evolve with business strategy

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