RESOURCES · GUIDES
Glossary.
The plan terms used on this site, in plain words.
- Plan version
- An approved set of rules for a period. A fix is a new version; the old one stays as it was.
- Building block
- One of the 26 parts a plan is made from: earn, shape, protect or adjust.
- Measure
- What a rule reads: revenue, units, margin, attainment and so on, per period, year to date or a rolling window.
- Credit
- The share of a sale counted towards a seat. One sale can credit several seats.
- Payout split
- Sharing an amount already earned between seats by percentage. Separate from credit.
- Quota
- The target a seat is measured against, approved and locked before it pays.
- Attainment
- Result divided by quota, used by curves, tiers, gates and accelerators.
- Tier
- A band on a measure. Marginal pays each band’s rate on its part; whole value pays the reached band’s rate on all of it.
- Accelerator
- A multiplier above an attainment threshold.
- Cap and floor
- An upper or lower limit on pay, per period, per year or per plan.
- Draw
- Pay up to a set amount when earnings are lower; recoverable draws are paid back from later earnings.
- Clawback
- Taking back pay when a sale is returned or cancelled, at the rate that paid it.
- Holdback
- Part of the pay held and released later, in instalments or on vesting.
- Proration
- Pay scaled to the part of the period a person held the seat.
- Gate
- A condition that must hold, or nothing pays.
- Run
- One calculation of a plan for a period. A test run posts nothing.
- Run proof
- The checks a run passes before approval: every sale counted, every rate line re-calculated, totals reconciled.
- Posting
- Making an approved run’s lines part of the record. Posted lines are never changed.
- Reversal
- A new line that cancels an earlier one, so the history stays.
- Payment run
- Approved lines gathered into payroll and AP files. A line is paid once.
- Dispute
- A question raised on a statement line; the answer and any fix stay on the record.
- Seat
- A position in a plan (a person in a role, for a period) that credit and pay attach to.