Banding calculation
The detailed planning Banding calculation is useful for the kind of sales commissions and bonus calculations that depend on revenue performance within predefined targets (sometimes called "threshold" values).
The Banding calculation uses a pair of parameters to set a range. A third parameter provides an input value for the calculation to compare to the range. If the input value falls within the range, the Banding calculation automatically returns the value of a fourth parameter, otherwise the calculation returns 0.
Adjustments are not allowed.
Tip: Using a series of Banding calculations, it is possible to create sophisticated stepped calculations.
Parameters
- Source value: Defines the value that is compared to the pre-defined range. Select Value to enter a numeric value; selecting any of the other options presents a list of the currently defined objects of that type. The options are Value, Attribute, Calculation, Global Vector.
- Upper band: The value that Source value must be less than. Provides the same options as Source value.
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Lower band: The value that Source value must be greater than or equal to. Provides the same options as Source value.
Note: If Lower band contains a greater value than Upper band, the calculation returns a result of 0.
- Applied value: Tthe value that becomes the calculation result. Provides the same options as Source Value.
Example
The following example shows how banding can be used to calculate employee bonuses. Source value represents company performance; the Upper band and Lower band represent the target range; the Applied value contains the pre-defined amount that the calculation returns if the Source value falls within the range (note that in Mar2017 the Source value equals the value in Upper band, and the calculation returns 0):
| Jan2017 | Feb2017 | Mar2017 | ... | Jan2018 | |
|---|---|---|---|---|---|
| Source value (Company Revenue) | 5,000 | 9,000 | 10,000 | 9,999 | 9,500 |
| Upper band | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 |
| Lower band | 9,000 | 9,000 | 9,000 | 9,000 | 9,000 |
| Applied value | 7,500 | 7,500 | 7,500 | 7,500 | 7,500 |
| Calculation Result | 0 | 7,500 | 0 | 7,500 | 7,500 |