Helpful Xactly Best Practices

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Using Xactly Draws

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Draw Types – listed below are 4 draw types available for setup in Xactly:

  • Recoverable – amount given in addition to any earned commissions and would need to be paid back in the future. For example, person A qualifies for a $100 draw, however person A also earned $200 in commissions. The resulting payment would be $300 & Draw Balance owed next month will be $100
  • Non-Recoverable – amount given in addition to any earned commissions and does not need to be paid back
  • Recoverable Guarantee – amount given net of commissions earned and would need to be paid back in the future. Taking the same example from above where person A qualifies for a $100 draw and is also earning $200 in commission. The resulting payment would be just the $200 earned from commission, no draw is given as commission amount exceeds draw amount. Balance owed next month would be 0. However, if person A only earned $50 in commission, then the resulting payment would be $100 ($50 from earned commission + 50$ draw payment). Balance owed next month will be $50
  • Non-Recoverable Guarantee – essentially exactly the same as Recoverable Guarantee, however any draw payment added does not need to be paid back

Note: Think of Guarantee type draws as essentially a guarantee by the company that person A will make a certain amount either in a form of a draw payment, commission payment, or a combination of draw + commission.

SetUp: Draws are set up under Plan Design -> Draws & you would need to add each position (person) to the created draw type by clicking “Add Position” -> Searching for Position -> OK -> Enter amounts.


Tips & Best Practice:

  • Draw Name – as best practice I would suggest using the “YYYY – Draw Type – Currency” naming convention to standardize your draws and make it easier to maintain them YoY (For example, “2015 – Recoverable Guarantee – USD”)
  • Draw payments/balance recovery occur when period is finalized (closed)
  • Draw Balance is recovered in a period in which the person is NOT eligible for a draw payment. For example, person A has a -10,000 draw balance in January, yet person A earned $5,000 in commission in February and is eligible for a $5,000 Recoverable Guarantee. Person A will receive a payment of $5,000 in commission (no draw given since he earned the guaranteed amount), and $0 would be recovered as person A was still eligible for a draw even though it was not paid. Balance recovery will start only when there is no more draw eligibility
  • Draw Balances do not automatically carry over into next year. To carry over balances you would need to set up 0 amount draw for the position. For example, by December 2014 Person A still carries -$10,000 draw balance and would need to continue recovering this balance in 2015. Depending on the draw type originally set up, you would need to create a 2015 Draw Type under Plan Design -> Draws (same process as outlined under “SetUp”), and add position for person A with all $0 amounts for periods
  • Draw Balance is recovered after Balance Carry Forward (BCF) is fully recovered. In the event a person has both a balance owed from a debook/clawback in an earlier period and a Draw Balance, the BCF balance is recovered first, and then draw balance is recovered. For example, person A carries a -$5,000 balance carry forward for a debook which occurred in a prior month and a -$10,000 Draw Balance in January. Next month person A earned $2,000 in commission, he would then recover $2,000 from BCF owed and would owe -$3,000 BCF and -$10,000 Draw Balance

1 Comment

  1. Hang Lee says:

    Thanks Alex. Your example is very clear which helps me understand the 4 types of draws. Can’t wait till your next posting!

    Liked by 1 person

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