Configure draw compensation plans

Set up a draw plan to pay reps a guaranteed amount during a ramp period. You build the plan from components — choosing one pay mechanism and optionally adding supporting components.

Overview

A draw plan pays reps a guaranteed amount during a ramp period. You build it from components: one pay mechanism (Draw Advance or Guaranteed Commission), plus optionally Draw Recovery (recoverable plans only) and Non-Negative Commission.

Two rules shape what you can add:

Draw Advance and Guaranteed Commission are mutually exclusive — adding one removes the other from the component menu, since a plan uses one or the other.
Draw Recovery appears only on recoverable plans.

Create a draw plan

Go to Compensation Plans.
Select + New, then choose Recoverable Draw Plan or Non-Recoverable Draw Plan.
On the Components tab, select Add Component and add the components you need.

Configure the components

On the Components tab, add each component you need, then set its fields. Every field is defined in Field reference below.

Draw Advance

Guaranteed Commission

Draw Recovery

Non-Negative Commission

Pays a fixed cash amount to the rep each period. Use when you want to issue a predictable cash advance (draw) irrespective of commission earned.

Draw Advance component configuration fields.

Ensures the rep receives at least a minimum commission amount each period. If earned commission is less than the guaranteed floor, the component tops up commission to the floor.

Automatically reclaims the outstanding draw balance from the rep’s earned commissions according to the configured Recovery Method and limits. Only available on Recoverable Draw Plans.

Form for draw recovery settings including calculation time and recovery methods.

Automatically reclaims the outstanding draw balance from the rep’s earned commissions according to the configured Recovery Method and limits. Only available on Recoverable Draw Plans.

Non-Negative Commission settings including calculation time, start date, and eligible users.

Field reference

All configurable fields across the draw components. The Applies to column shows which components use each field; fields scoped to Draw Recovery appear on recoverable plans only. Fields marked with * are required.

Field	Description	Applies to
Calculation Time	Select either Start of commission period or End of commission period.	All components
Start Date Field*	Select a People‑record date field (for example: Hire Date or other date field from your people data). This selects when the component’s window starts for each rep.	All components
Duration (Periods from Start)*	How many commission periods the component runs. End date = end of the Nth period from the start date (N=1 means the start period only).	All components
Termination/Role Change Date Field	Optional. Select a People date field. If populated and the termination/role change date falls within a period, the rep is prorated and the component may stop early.	All components
Eligible Users	Set filter criteria to define who is eligible for the draw (for example, Base Salary greater than 150,000).	All components
Prorate draw amount	When on, the component’s period amount is prorated by days worked within the commission period (inclusive of start and end dates). Use this when reps start or terminate mid‑period and you want the advance or recovery limited to days worked.	Draw Advance, Guaranteed Commission, Draw Recovery
Maximum Allowed Balance	Per‑component safety cap to limit outstanding balance so debt cannot grow without a limit. When enabled, enter a dollar cap.	Draw Advance, Guaranteed Commission
Draw Amount Per Period*	Fixed draw amount issued to the rep each commission period.	Draw Advance
Guaranteed Commission Floor*	Minimum commission the rep is guaranteed each period. If earned commissions are below the floor, the system pays the difference.	Guaranteed Commission
Recovery Method	Determines the recovery cap for a period. Options: Max dollar amount per pay period (fixed max per period) Percentage of the commission balance (1–100%) Any positive balance over a set dollar amount (recover earnings above a threshold)	Draw Recovery
Recovery Amount, either: Draw Recovery Amount Per Period* Recovery Percentage (%) Recovery Balance Threshold	Depending on Recovery Method, input the value as either: a fixed max dollar amount per period a percentage (1–100) of the commission balance to recover each period a dollar threshold for positive balance recovery	Draw Recovery
Forgive remaining balance on component end date	Any balance left on the component's end date is issued as a forgiveness.	Draw Recovery
Forgive remaining balance on termination date	Any balance left when a user is terminated is issued as a forgiveness.	Draw Recovery
Recover from prior draw balance	Extends recovery to a prior outstanding balance if the remaining commission balance after this period's recovery exceeds the threshold.	Draw Recovery
Forgive negative balances	Sets the forgiveness scope; any remaining negative commissions balance at the end of the specified period is forgiven (for example, All Periods (Including Prior)).	Non-Negative Commission

Processing order

Each commission period, Pay runs draw components in this order:

Draw Advance
Guaranteed Commission
Draw Recovery
Non-Negative Commission

How it looks in the ledger

What shows up in the commissions ledger depends on the plan type and pay mechanism — see Review draws in the ledger for worked examples of recoverable draws, non-recoverable draws, and Guaranteed Commission.

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