Formulas

On the Define Formula tab of the Calculation Wizard in IBM^® Cognos^® Incentive Compensation Management, you can create multipliers (or a more complex formulas) for the calculation.

Any numeric value can be pulled directly from the sources tree into the formula window.

You can use various formulas (for example, SUM, MIN, MAX, IF, AND, OR, and NOT) to set up the calculation that you want.

In addition, you can click the Preview button to examine the results of each formula before you proceed.

Important: Each formula must satisfy only a portion of the requirements of the entire compensation calculation. For example, consider a compensation plan that requires the following calculations: totaling product sales for the month, determining the appropriate compensation rate based on the sales amount, and then calculating the compensation payout. This plan might be conceptually understood more easily in three calculations than in a single step. You can create three separate calculations that build on each other to obtain the final result.