Create a commission plan

What this achieves

A commission plan sets what performance is measured against and how the commission rate steps up as attainment rises. One plan can serve a whole sales team, because individual targets are set separately against it.

Required role: Administrator.

Before you start

Create an active earning pay element for the commission to pay into. The element is what sets how the payout is taxed and whether it enters the social-insurance base, so a plan cannot be finished without one.

Steps

Go to Payroll → Commission Plans.
Select New plan.
Enter a Plan name.

Example: UK Sales Commission.
Set the Legal entity, or leave it as All entities.
Choose the Currency.
Choose what the plan is Measured on.
Choose the Attainment period and the Payout timing.
Choose the Pay element the commission pays into.
Under Who it reaches, set the criteria.
Build the Commission ladder, using Add band for each band.
Select Save plan.

Measured on

Option	Description
Revenue	Attainment is revenue against target. Commission is the rate percentage applied to revenue.
Units	Attainment is units against target, such as deals, renewals, or installs. Units carry no money on their own, so you also set what one unit is worth.

Example: HC Corp UK Ltd’s Sales department runs a revenue plan in GBP. A plan counting renewals instead would need a value per unit, because a renewal count is not an amount.

Period and payout timing

Option	Description
Monthly	Performance is scored against target every month.
Quarterly	Performance is scored against target every quarter.

Option	Description
Paid in the same period	The computed payout reaches the payslip for the period it was earned in.
Paid the following period	The payout reaches the next period’s payslip.
Paid at quarter end	The payout reaches a payslip at quarter end.

Currency decides who the plan can reach

Targets are set in the plan’s currency and payouts are paid in it. A plan only reaches employees paid in that same currency, because there is no exchange rate anywhere in Humavera. An entity-scoped plan takes its currency from its entity.

Example: a GBP plan reaches HC Corp UK Ltd’s sales team. It does not reach anyone employed by HC Corp Inc. and paid in USD — they need their own plan.

The commission ladder

Each band starts where the previous one ends, so there are no gaps, and the top band is always open-ended so over-performance always earns.

Example: a ladder reading 0–80% pays 2%, 80–100% pays 4%, and 100% and above pays 6% means a seller at 90% of target earns at 4%.

Humavera restates the ladder back to you as a sentence as you build it. Read that sentence before saving — it is the fastest way to catch a band that does not mean what you intended.

Scope and precedence

A plan naming an entity beats an all-entities plan inside that entity. Criteria under Who it reaches combine with AND, so every filter you set must be true of the employee, and setting none reaches everyone in scope paid in the plan’s currency.

What happens next

A plan pays nothing on its own. It defines the shape; each person’s target is set on the plan’s targets table, per period, and commission is only calculated once actual attainment is recorded against those targets. Deleting a plan leaves targets already set on record and changes nothing already paid.