Get Started with Line-by-Line Rules
Learning Objectives
After completing this unit, you’ll be able to:
- Explain line-by-line rules.
- Build a line-by-line rule for your payout plan.
- Describe how line-by-line rule calculations work.
- Explain the purpose of using summary fields.
What Are Line-by-Line Rules?
Salesforce Spiff is a leading sales compensation software that automates and simplifies the process of calculating and managing sales commissions. Using Salesforce Spiff ensures accurate, timely, and transparent commission payments, motivating sales teams and driving performance. If your commission calculation comes from a datasheet, that calculation applies to a collection of records from your data filter. Your commission total will be the sum of the output values for each record, making it a line-by-line rule.
Why build line-by-line rules? They provide more data for your reports, such as commission earned per deal, the deal’s commission rate, deal annual recurring revenue (ARR), close date, and deal type. This granular data is only available in the report if the rule is structured as a line-by-line rule. Whether you use custom reports or expense reports, having record-level detail in reports is always helpful.
Let’s go through two examples to understand line-by-line rules better.
Example 1
A common filter is deals closed by a rep in a period. Let’s say each deal amount gets multiplied by 10%. If a rep has four deals in their closed-in period data filter, this calculation is applied to the four deals individually. The output of each of these calculations is summed up to get the rule total.
Example 2
A common scenario is that reps earn a set amount for each new subscription they sell. Every deal flagged as a new subscription in the data filter receives the commission. Let’s say the rep earns $25 for each new subscription. If the rep has four new subscriptions in their closed-in period, they earn $100 in commission for this rule.
Most, if not all, commission plans are much more complex than these examples. However, understanding the concept can help you decide on the approach you need to take when building your own rules.
Build a Line-by-Line Rule
One of the essential features of a line-by-line rule is that you select a data filter for which you wish to apply the calculation. If you build a ClosedInPeriodRenewal data filter, this filters all records from your synced/uploaded object and return deals that have been closed-won by a specific rep, in a specific statement period, which have also been flagged as a renewal.
Line-by-line rules employ a Spiff datasheet. A datasheet is like a data filter, where you can continue to add new customerfields and calculations.
Here’s how you build a line-by-line rule. To begin, create a new datasheet. Once done, from the menu on the right sidebar, select the object that contains the desired filter and choose the data filter itself. This ensures that the commission calculation is applied to the specific deals returned by the filter.
Initially, the datasheet appears empty, but you can display relevant fields such as DealAmount. Click the plus icon and type DealAmount in the field search to add the field to the datasheet and view the corresponding values. You can display additional fields from your source data, such as CloseDate, DealName, Owner ID, and ARR.
While working with the datasheet, hover over a field name and click the dropdown menu to access additional options: Insert or remove columns, sort data, apply filters, or freeze columns for better viewing.
Line-by-Line Calculations in Action
Having added relevant fields to your datasheet, create the calculation for the commission payout. Click the plus icon to add a new field and provide a name for it. This field represents the final commission payout that is referenced on the rules page.
Once the field is created, type =DealAmount*10% to enter the calculation in the formula bar, or the field itself. To save the calculation, click the check mark.
As this is a line-by-line rule, Spiff applies the commission calculation to each deal within the ClosedInPeriodRenewal filter. You can observe the commission amount for each record in the rule. For easier comparison, you can drag the DealAmount field next to the new commission field.
To ensure the commission payout appears on the statement, add the payout rule and the associated payout amount to the plan page. Simply double-click the empty cell under Payout Amount and enter the name of the commission field you created.
Sum It Up
And that’s it. You’ve created a line-by-line rule that calculates the commission based on deal renewals. You can adapt this process according to your specific needs and the data filters you’re working with.
It can be handy to sum a commission field in your summary row. This let’s you know at a glance the commission payout for the rep and period you selected at the top. Don’t assign this summary field as your payout amount! Assign the commission field to your payout rule so you can see the commission calculated for each deal individually. Assigning the sum of the commission field causes you to lose all of this valuable line-by-line or per-deal data. You won’t be able to trace into commission logic for a specific deal or generate a report with deal information.
The primary purpose of a line-by-line rule in the context of commission calculations is to apply a calculation to a specific data filter. Thanks to line-by-line rules in Spiff, you get more insights into your data.