Revenue Form Type Incentive Template Setup

In this article, we will review how to create a revenue form type incentive template. Incentive Templates can be found under the Account Management section.

Incentive Template Purpose

Incentive templates are where you set up the boundaries for how an incentive form can be paid out. When creating an incentive form, you assign profit share percentages, pools, pool percentages, and elective accounts. You can use as many incentive templates as you would like in a single payout.

The revenue form type can be used when you know your project's, contract's, or specific time period's revenue and profitability percent. The profitability percent will be multiplied by the revenue to find the actual profit. The actual profit will then be multiplied by the profit share percent to determine the bonus amount available for distribution.

Revenue, Profitability, Actual Profits

Revenue Form Type Incentive Template Setup

When creating an incentive template name, choose something that will represent the incentive forms that will be created in it. Some example revenue incentive template names could be General Projects, General Contracts, or Support Staff.

If you ever want to stop using an incentive template, switch the Active toggle off and you will no longer be able to select that incentive template when creating an incentive form.

When the Performance Management Applies toggle is turned on, all bonuses distributed from that incentive template will be affected by the team members' performance management score. When this toggle is turned off, bonus distributions created with this incentive template will not be affected by team members' performance management scores. A typical scenario where you would turn this toggle off would be an incentive template used for your sales team that is commissioned solely based on contract amounts and not performance.

The Allow Manual Form Creation toggle was created to help minimize possible duplications by allowing form importing and manual form creation for the same comp card. The toggle is on by default and anyone with permission to create incentive forms can manually create an incentive form for this incentive template. When the toggle is turned off, incentive forms can only be created with this incentive template if they are imported through a CSV file or integration. Admins in the account will still be able to manually create a form with that incentive template. 

The 1-Step Approval/Finalize toggle was created to reduce the number of steps it takes to for an incentive form to become eligible for a payout. Some clients complete their accounting review before entering their profit numbers into incentive forms in which case, the third step of finalizing becomes redundant. When this toggle is turned on, keep in mind that the form approvers will now have the ability to approve and finalize the incentive form.

Form Number ID 1 Label is a form label that can be customized to an identifier that fits best within each organization. If an organization uses projects or contracts, they could label this field as Project Number or Contract Number.

Form Number ID 2 Label (Optional) is an optional label that could be used for further identification of your forms. An organization could label this field as a task or phase.

Default Form Profit Share % can be set as Locked, Unlocked, or Unlocked with Approval.

  • When the profit share percent is Locked, the only way the percent can be changed is by an admin changing it at the incentive template level. If an admin changes the profit share percent and there are already incentive forms assigned to that incentive template, they will have the option to change all incentive forms assigned to the incentive template that aren't initialized for payout yet, or only change the profit share percent on any future incentive forms assigned to that incentive template.
  • When the profit share percent is set as Unlocked, the form manager can change the profit share percent to be anything they see fit.
  • When the profit share percent is set as Unlocked with Approval, the form manager can change the profit share percent to what they see fit and the form approver will be notified of the change. The form approver must either accept or reject the profit share percent change before the incentive form can be finalized.

Profitability % is the percent of revenue an organization anticipates to be the actual profit. This percent will be multiplied by the total contract amount and then multiplied again by the profit share percent to reach the bonus amount to distribute.

Form Type options

Pools

When adding pools in an incentive template, you can create new pools and roles within the incentive template or use any previous pools and roles created. Pools should be created around the different teams or roles and responsibilities to give the form manager boundaries when distributing incentive percentages.

Elective Accounts

When adding elective accounts in an incentive template, you can create new elective accounts or use any previous elective accounts created. Elective accounts can also be hidden from the incentive form view by selecting the eye icon highlighted in the image below. Enabling this makes it so no one can see what percentage or dollar amount is assigned to that elective account when reviewing the incentive form.

Elective account options