Glossary (Sales Compensation)

This page lists specific terms, vocabulary, and definitions that are used in the context of the Sales Compensation package.

Term	Description
Baseline	Refers to the Baseline field in Transactions Datamart used as a baseline for calculation, e.g. Net Price or Quantity.
Baseline Value	Value of the specified baseline (usually sum etc.), e.g. 5000 (EUR), or 1000 (pieces).
Commission	Always in cash form, commission is an income payment. It could be a percentage of a product or service sold.
Compensation	A term used in the system as a final reward. In reality, it could be for some companies just a bonus, for other commission and in some cases incentives.
Incentive	An amount of money or non-monetary reward to motivate someone to achieve something.
On-Target Earnings (OTE)	Refers to an employee's pay mix made of basic salary and the additional variable component such as commission as their compensation.
Pay mix	The ratio of base salary to target compensations that make up On-Target Earnings (OTE).
Quota	Minimal amount of sales needed to be eligible for compensation.
Sales Agent	A person who actually sells and is also the main recipient of compensations. It could be an alternative name for a Sales Representative, SalesRep or Salesperson.
Sales Compensation Administrator	A person who is responsible for the smooth working of all elements. This person takes the plan from the company’s representatives and ensures that individual Sales Managers are able to create agreements. The person makes sure all people are in the system and individual compensation types and calculation logics which the company uses are present in the system. Sales team changes, adjustments or running plans, contract revisions for a new cycle or global reporting are activities in their agenda. Typically, this person is from Finance or SalesOps department closely cooperating with Sales Managers, HR and legal team.
Sales Compensation Plan	It outlines sales agent’ base salary as well as the company’s commission and incentive program with strategy. Commission, bonus and incentive structure incentivize sales force to reach their objectives in order to earn a deserved reward. In other words, sales compensation itself is the amount of money a salesperson is paid in the end. Sales compensation encourages the positive behaviors in the sales teams that are necessary to achieve the overall organizational goals and results.
Sales Manager	A person who is responsible for the actual creation of individual Compensation Agreements. The person enters conditions into agreements, negotiates details with Sales Agents and watches progress towards set goals. Sales Manager can also generate reports for those who are not able to access the system on their own. It could be an alternative name for Team Lead.
SPIFF	Sales Program Incentive Funds. In this accelerator, it refers to one of the Compensation Types and it allows you to select (as a payee) a seller group from Master data.
True Up	Also called Catch Up. Refers to an adjustment made to a previous estimate to match it with the actual figures.