Pro rata rebates
The Pro Rata function is suitable if you are paying or claiming the rebate on a yearly basis, but you want to see how rebates are likely to track for the year when you are only part-way through the year.
The Pro Rata setting for a rule becomes available in the rule setup screen when the Calculation Type is set to Absolute, the bracket Amounts Per is set to Year and Retrospective is set to Yes.
This conditional availability is illustrated in the following diagram.
There are three pro rata options:
Off: This is the default setting; the Pro Rata function is NOT used when calculating the rebate amount throughout the year.
Linear: This is the standard method for calculating a rebate over a year (12 months).
Each month is weighted equally to estimate the bracket in which a rebate is likely to fall by the end of the year. Your actual results are multiplied by the number required to 'make' 12 months, then the brackets are applied accordingly to calculate the results.
This option is suitable when it is likely your targets will not be met until late in the year. It allows you to estimate the monthly or quarterly the level of rebate that you will be paying or receiving.
Seasonal: This method calculates pro rata projections based on a seasonality calendar.
Each month is weighted differently when calculating the results. For example, suppose in January you expect only 5% of yearly sales, whereas in July you expect 20% of all sales.
This option is suitable if there are seasonal variations in your business, as it allows you to factor in that seasonality and therefore, estimate the rebate amount more accurately. For example, if you have a slow start of the year, the first months of the year will lead to under estimations about the performance and if you used the linear Pro Rata method, the bracket applied might not be representative of the year overall; the results would be skewed.
If you have more than one seasonal calendar, the Calendar setting displays, from which you need to select the applicable calendar.