‘Targeted amount with turnover in units’ deal mechanism

Description

A mechanism where the earnings are a fixed amount, the size of this amount depends on the level of target achieved, and turnover is expressed as a number of units rather than the amount of money.

Example

A deal for which the earnings are £10,000 if turnover is less than 500,000 units, £20,000 if turnover is greater than or equal to 500,000 units but less than 750,000 units, or £30,000 if turnover is greater than or equal to 750,000 units.

Configuration approach

You will be required to:

• Configure one or more turnover bands, with a turnover target and an earnings amount for each (where each earnings amount is a monetary amount, in the currency of the parent scheme), as illustrated below for a GBP scheme:

• Select one or more items for each dimension that has been configured for you as included items for the deal.

DealTrack will select matching turnover lines for the deal, based on:

• The supplier to which the deal belongs.

• Your dimension item selections.

• The start and end date of the deal.

• The currency of the parent scheme.

To calculate an earnings result for the deal as a whole, DealTrack will compare the total for turnover units across the matching turnover lines with the turnover targets that have been configured for the deal to determine which turnover band, and therefore which earnings amount, applies.

To calculate an earnings result for each matching turnover line, DealTrack will use the entries for turnover units from the matching turnover lines to apportion the deal level result for earnings and derive an earnings result for each of the matching turnover lines.

Optional settings

For a deal that uses the Targeted amount with turnover in units plug-in, there are no optional configuration settings.