Supplement to distill essence of examples in Metalink Doc ID

232008.1

HOW FORMULA OPTIONS DRIVE

OIC CALCULATIONS

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 Formula Options
Formula Valid Tips
Option Parameters
Process Individually Refers to how transactions are processed. Calculation
or Group By creates Group By Interval transactions to store
Interval earnings and not on each incoming transaction.
Consider reporting ramifications. See Example #1.
Accumulate Y or N Refers to whether or not to accumulate input
expressions. Works with Interval option.
Interval Period, Determines when to reset accumulated input
Quarter or expressions and ITD sub ledger values.
Year
Split No Split, Non Determines how rates are applied when transaction
Proportional, cross a tier. If Non Proportional or Proportional, must
Proportional specify which input expression is split on and whether
to aggregate.
ITD N or Y ITD=N except in rare cases, Example #5,6. If ITD=Y,
Accumulate must =Y. ITD=Y refers to whether higher
Rate Table Result uplifts prior transactions. Counter
intuitive. Rarely used.

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Base Scenario Date Trx # Trx Amount
Jan 3 T1 $100
Jan 5 T2 $200
Feb 2 T3 $300
Feb 4 T4 $400
Mar 12 T5 $500

Rate Table
$0-$500 1%
$500-$1000 2%
$1000+ 3%

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 Formula Options Date Trx# Trx Amount
Jan 3 T1 $100
Jan 5 T2 $200
Feb 2
Process=
T3 $300
Indiv/GroupBy
Feb 4 T4 $400
Mar 12 T5 $500

Rate Table
$0-$500 1%
$500-$1000 2%
$1000+ 3%
ITD=Y/N
Accumulate=Y/N Y is rare. Recovers higher
Resets @Interval rate for prior trx

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 Formula Options – Talking Points
• The ‘Process’ formula option refers to how incoming transactions are
processed; whether they are processed Individually or Grouped By.
Transactions processed Individually are assigned Earnings at the transaction
level. Transactions processed Grouped By are summed across an interval
but Earnings are determined on a new Group By transactions created during
calculation. We will be discussing that further in one of the examples.
• The ‘Accumulate’ formula option refers to whether the Input Expression is
accumulated prior to being passed into the rate table. This works in
conjunction with the Interval option which determines when the accumulated
Input Expressions and ITD sub ledger values are reset.
• The ‘ITD’ formula option refers to whether the Output Expression’s Rate
Table Result applies only to the transaction amount (ITD=N) or needs to
recover Earnings due to a higher rate for prior transactions in the same
interval (ITD=Y). Note that ITD typically is N and is rarely Y. OIC Calculation
recovers additional Earnings from prior transactions by determining the rate
for the accumulated Input Expression, applying this rate across ITD Inputs,
and subtracting all prior earnings for the same interval. This is counter
intuitive and is rarely used! Do NOT use unless your business requirements
following this methodology.

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 Formula Options - Splits
How Rates are Applied when Trx Crosses a Tier

Apply RTR to Apply RTR as per Apply RTR

Entire Amt Step Tiers Proportionally

R R R
a a a
t t t
e e e

T3 T3 T3

Split= Split= Split=

No Split Non Proportional Proportional
(most common w Accum=N) (Most common w Accum=Y)

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 Sloped Tiers: Split=Proportional
Apply RTR Proportionally
Payout Curve
• Realistically for Amount
type RTs (not % type RTs)
• For example: A
• 0-$500 =>$10, m
$500-1000 =>$20, o
$1000-2000 =>$30 u
• Formula Options n
t
• Process=xx
• Accumulate=xx
• Split=Proportional
• ITD=N
• Interval=xx Trx Amount

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 Common #1 - Accum to get rate, Process Indiv
Earnings = area under payout curve ‘Just Like Taxes’
Payout Curve
• Formula Options 4%
• Process=Individually 3%
• No extra GroupBy trx
3%
• Accumulate=Y R
• Accumulate Input Expression
a 2%
to get rate t 2%
• Interval=Qtr e 1%
• Defines when to reset totals 1%
• Split=Non Proportional 0%
T3

• ITD=N

Accumulated Trx Amounts

Accum to get rate & apply to each trx

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Common #1– Just Like Taxes:
Accumulate transactions to get split rate, Process Individually
Date Trans Trx Rate Table Earnings
1. Accumulate transactions to get # Amount Result
rate
Jan T1 $100 Accum@0 100 * 1% = $1
2. Apply split rate to transaction 3 Split 100=>1%
amount Jan T2 $200 Accum@100 200 * 1% = $2
5 Split 200=>1%
Notice: Calculations are identical to
Example #7 Feb T3 $300 Accum@300 200 * 1% + 100 *
2 Split 300=> 2% = $4
200@1%+
100@2%
Feb T4 $400 Accum@600 400 * 2% = $8
4 Split 400
=>400@2%
Mar T5 $500 Accum@1000 500 * 3% = $15
12 Split 500
=>500@3%
Total $30

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 Common #2 = Example #2
Earnings represented by area under payout curve
Payout Curve
• Formula Options 4%
• Process=Individually 3%
• No extra GroupBy trx 3%
R
• Accumulate=N 2%
a
• Input Expression not
accumulated
t 2%
e 1%
• Interval=Period
• Split=No Split 1%
T3
• ITD=N 0%

Individual Trx Amounts

Get rate for each trx & apply to each trx

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Common #2 = Example #2
Treat each transaction Individually
1. Get rate for each transaction Date Trans # Trx Rate Table Earnings
Amount Result
2. Apply rate to each transaction Jan 3 T1 $100 1% 100 * 1%
= $1
Jan 5 T2 $200 1% 200 * 1%
= $2
Feb 2 T3 $300 1% 300 * 1%
= $3
Feb 4 T4 $400 1% 400 * 1%
= $4
Mar T5 $500 2% 500 * 2%
12 = $10
Total $20

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Note: Calc examples provided are corner cases used to illustrate
how Formula Options affect calculation. These are NOT commonly
used but will increase your understanding of how to design plan
elements to match business requirements.

CALC EXAMPLES FROM

METALINK DOC ID 232008.1

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Base Scenario Date Trx # Trx Amount
Jan 3 T1 $100
Jan 5 T2 $200
Feb 2 T3 $300
Feb 4 T4 $400
Mar 12 T5 $500

Rate Table
$0-$500 1%
$500-$1000 2%
$1000+ 3%

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 #1 Group Trx Amounts by Interval
Earnings represented by area under dotted line
Payout Curve
• Formula Options 4%
• Process=GroupByInterval 3%
• Creates extra GroupBy trx
3%
R
• Accumulate=Y
a 2%
• Accumulate Input Expression
to get rate t 2% GRP By

e 1%
• Interval=Qtr
• Defines when to reset totals 1%
T3
• Split=No Split 0%
• ITD=N

Accumulated Trx Amounts

Sum trx to get rate & apply to sum

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Example #1
Group Trx Amounts by Interval to Get Rate and Apply to Sum
1. Sum transactions in the interval Date Trans # Trx Rate Table Earnings
Amount Result
2. One group by transaction created Jan 3 T1 $100 --- $0
to get rate based on interval total
Jan 5 T2 $200 --- $0
3. Apply rate to interval total Feb 2 T3 $300 --- $0
Feb 4 T4 $400 --- $0
• Also used to accumulate
achievements in place of Mar T5 $500 --- $0
interdependent PEs, though 12
slower calc perf
Mar GRP --- 1500=>3% $1500 *
31 3%
= $45

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 #2 Treat each Trx Individually
Earnings represented by area under payout curve
Payout Curve
• Formula Options 4%
• Process=Individually 3%
• No extra GroupBy trx 3%
R
• Accumulate=N 2%
a
• Input Expression not
accumulated
t 2%
e 1%
• Interval=Period
• Split=No Split 1%
T3
• ITD=N 0%

Individual Trx Amounts

Get rate for each trx & apply to each trx

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Example #2
Treat each transaction Individually
1. Get rate for each transaction Date Trans # Trx Rate Table Earnings
Amount Result
2. Apply rate to each transaction Jan 3 T1 $100 1% 100 * 1%
= $1
Jan 5 T2 $200 1% 200 * 1%
= $2
Feb 2 T3 $300 1% 300 * 1%
= $3
Feb 4 T4 $400 1% 400 * 1%
= $4
Mar T5 $500 2% 500 * 2%
12 = $10
Total $20

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 #3 Accum to get rate, Process Individually
Earnings a little bigger than area under payout curve
Payout Curve
• Formula Options 4%
• Process=Individually 3%
• Accumulate=Y 3%
R
• Accumulate Input Expression
to get rate a 2%
t 2%
• Interval=Qtr
e 1%
• Defines when to reset totals
• Split=No Split 1%
T3
• ITD=N 0%

Accumulated Trx Amounts

Accum to get rate & apply to each trx

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Example #3
Accumulate transactions to get rate & Process Individually
1. Accumulate transactions to get Date Trans # Trx Rate Table Earnings
rate Amount Result
Jan 3 T1 $100 100=>1% 100 * 1%
2. Apply rate to each transaction = $1
Jan 5 T2 $200 300=>1% 200 * 1%
= $2
Feb 2 T3 $300 600=>2% 300 * 2%
= $6
Feb 4 T4 $400 1000=>3% 400 * 3%
= $12
Mar T5 $500 1500=>3% 500 * 3%
12 = $15
Total $36

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 #4 Invalid Formula Options
ITD=Y must Accumulate
Payout Curve
• Formula Options 4%
• Process=Individually 3%
• Accumulate=N 3%
R
• Accumulate Input Expression
to get rate a 2%
t 2%
• Interval=Qtr
e 1%
• Defines when to reset totals
• Split=No Split 1%
• ITD=Y 0%

Accumulated Trx Amounts

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 #5 Accum to get rate Process Individually
ITD=Y Recovers Higher Rate for Prior Trx
Payout Curve
• Formula Options – same as 4%
#3 except ITD=Y 3%
• Process=Individually 3%
R
• Accumulate=Y a 2%
• Accumulate Input Expression
t 2%
to get rate
e 1%
• Interval=Qtr
• Defines when to reset totals 1% T T
1 2 T3
• Split=No Split 0%
• ITD=Y
• Rarely used
Accumulated Trx Amounts
Accum to get rate & apply to each trx

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Example #5
Accumulate transactions to get rate, Process Individually, Recover
higher rate for Prior transactions
1. Accumulate transactions to get Date Tran Trx Rate Table Earnings
rate s# Amount Result
Jan 3 T1 $100 100=>1% 100 * 1% - (0)
2. Apply rate to interval total – Prior = $1
Earnings
Jan 5 T2 $200 300=>1% 300 * 1% - (1)
= $2
Feb 2 T3 $300 600=>2% 600 * 2% -
(1+2) = $9
Feb 4 T4 $400 1000=>3% 1000 * 3% -
(1+2+9) =
$18
Mar T5 $500 1500=>3% 1500 * 3% -
12 (1+2+9+19) =
$15
Total $45

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 #6 Accum to get rate Process Individually
ITD=Y Recovers Higher Rate for Prior Trx
Payout Curve
• Formula Options – same as 4%
#5 except Interval=Period 3%
• Process=Individually 3%
R
• Accumulate=Y a 2%
• Accumulate Input Expression
t 2%
to get rate
e 1%
• Interval=Period
• Defines when to reset totals 1%
T3 T4
• Split=No Split 0%
• ITD=Y
• Rarely used
Accumulated Trx Amounts
Accum to get rate & apply to each trx

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Example #6
Accumulate transactions to get rate, Process Individually, Recover
higher rate for Prior transactions (Reset every Month rather than Qtr)
1. Accumulate transactions to get Date Tran Trx Rate Table Earnings
rate s# Amount Result
Jan 3 T1 $100 100=>1% 100 * 1% - (0)
2. Apply rate to interval total – Prior = $1
Earnings from the same interval
Jan 5 T2 $200 300=>1% 300 * 1% -(1)
= $2
Feb 2 T3 $300 300=>1% 300 * 1% -(0)
= $3
Feb 4 T4 $400 700=>2% 700 * 2% - (3)
= $11
Mar T5 $500 500=>2% 500 * 2% - (0)
12 = $10
Total $27

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 #7 Accum to get Split rate Process Indiv
Never use since same as ITD=N (See Common #1)
• Formula Options – same as Payout Curve
#5 except Split=Non 4%
Proportional 3%
• Process=Individually R
3%
• Accumulate=Y a 2%
• Accumulate Input Expression t 2%
to get rate e 1%
• Interval=Qtr
• Defines when to reset totals
1%
T3
• Split=Non Proportional 0%
• ITD=Y
• Should RARELY use because same as
ITD=N (Common #1) but counter intuitive Accumulated Trx Amounts
& slower
Accum to get split rate & apply to each trx

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Example #7
Accumulate transactions to get Split rate, Process Individually, Recover
higher split rate for Prior transactions
Date Trans Trx Rate Table Earnings
1. Accumulate transactions to get # Amount Result
rate
Jan T1 $100 Split 100 * 1% - (0) = $1
2. Apply split rate to interval total – 3 100=>1%
Prior Earnings (in the same Jan T2 $200 Split 300 * 1% - (1) = $2
interval) 5 300=>1%
Feb T3 $300 Split 600=> 500 * 1% + 100 * 2%
2 500@1%+ -(1+2) = $4
100@2%
Feb T4 $400 Split 1000 500 * 1% + 500 * 2%
4 =>500@1% - (1+2+4) = $8
+ 500@2%
Mar T5 $500 Split 1500 500 * 1% + 500 * 2%
12 =>500@1% + 500 * 3% -
+500@2% (1+2+4+8) = $15
+500@3%
Total $30

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 #8 Accum to get Prop rate Process Indiv
Never use since same as ITD=N
• Formula Options – same as Payout Curve
#7 except 4%
Split=Proportional 3%
• Process=Individually 3%
R
• Accumulate=Y a 2%
• Accumulate Input Expression t 2%
to get rate
e 1%
• Interval=Qtr
1%
• Defines when to reset totals T3
0% T3
• Split=Proportional
• ITD=Y
• Proportional Split realistically
used with Amount type RT (not % Accumulated Trx Amount
type RT)
Accum to get proportional rate & apply to each trx
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Example #8
Accumulate transactions to get Proportional rate, Process Individually,
Recover higher split rate for Prior transactions
Date Trans Trx Rate Table Earnings
1. Accumulate transactions to get # Amount Result
rate
Jan T1 $100 Split 100 * 1% - (0) = $1
2. Apply proportional rate to 3 100=>1%
interval total – Prior Earnings Jan T2 $200 Split 300 * 1% - (1) = $2
5 300=>1%
Feb T3 $300 Split 600=> 500 * 1% +
2 500@1%+ 100*2%*(100/500) -
100@2% (1+2) = (5+.4)-3
slope = $2.4
Feb T4 $400 Split 1000 500 * 1% + 500 * 2%
4 =>500@1% - (1+2+2.4) = (5+10)-
+ 500@2% 5.4 = $11.6
Mar T5 $500 Split 1500 500 * 1% + 500 * 2%
12 =>500@1% +
+500@2% 500*3%*(500/1000) -
+500@3% (1+2+2.4+11.6) =
slope $5.5
Total $22.50Page 28
 Tips to understanding calculation results
• Note: rates in CN_COMMISSION_LINES for transactions
that cross rate tiers are blended and are determined after
earnings are calculated. E.g., rate = earnings/trx_amount

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Note: Calc examples provided are corner cases used to illustrate
how Formula Options affect calculation. These are NOT commonly
used but will increase your understanding of how to design plan
elements to match business requirements.

ADDITIONAL CORNER CASE

CALC EXAMPLES TO METALINK
DOC ID 232008.1
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 Additional Examples #9 – Process Trx
Independently
Payout Curve
• Same as Example #2 except 4%
Split=Non Proportional
3%
• Formula Options 3%
R
• Process=Individually a 2%
• No extra GroupBy trx t 2%
• Accumulate=N e 1%
• Accumulate Input Expression
to get rate 1%
T3
• Interval=Period 0%

• Split=Non Proportional
• ITD=N
Accumulated Trx Amounts

Process each trx independently

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Additional Example #9– Process each Transaction Independently:
Process transaction independently, get rate and apply
Date Trans Trx Rate Table Earnings
1. For each transaction, use input
expression (without # Amount Result
accumulating) to get a rate Jan 3 T1 $100 100=>1% 100 * 1% = $1
Jan 5 T2 $200 200=>1% 200 * 1% = $2
2. Apply rate to transaction amount
Feb 2 T3 $300 300=>1% 300 * 1% = $3
Feb 4 T4 $400 400=>1% 400 * 1% = $4
Mar T5 $500 500=>1% 500 * 1% = $5
12
Total $15

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