Compensation Templates
Compensation Templates allow you to define how participants get paid on files. You can specify up to 6 payees per compensation template. Companies can have multiple compensation templates that you can use depending on the qualifications of the particular file being submitted. When used, payment schedules will reflect the debit transactions and then corresponding credit transactions a few days later for funds being credited to a payee's bank account.
Add New or Edit an Existing Template
Location: Admin Tab > Companies (Navigation Bar) > Company (green arrow at the end of the row for the corresponding company) > Compensation Template (Navigation Bar)
Create New Template - Create a new template for the company
or
Edit Existing - Select a Compensation Template that has already been created from the drop down menu on the navigation bar all the way to the left.
Initial Options:.
1. Template Name - Enter a concise name describing the type of template (we will call ours standard, in this example).
2. Template Type - Flat Amortization, Variable Amortization or Formula Based. This gives you different options for how the transaction amount will be scheduled and calculated.
3. Template Availability - This sets whether the template will be available for only contacts assigned to "This Company" or if it will be available to contacts under "All Companies". You may have a global template setup so that it can be used by anyone, or if you manage a group of affiliates who each need to have their fees split differently you would setup individual templates for each.
Template Types
Flat Amortization - Sets simple calculations for each fees split.
Example 1 - In the first example we have an enrollment plan with 2 Fees. Fee 1 is an enrollment fee and Fee 2 is a monthly fee. We are splitting these fees between 2 Payees. The enrollment fee (Fee 1) is being split 50/50 and the monthly fee (Fee 2) is being split 25/75.
Example 2 - In the second example we have an enrollment plan with 2 Fees. Fee 1 is an enrollment fee and Fee 2 is a monthly fee. We are splitting these fees between 2 Payees. The enrollment fee (Fee 1) is being split so that $100 goes to Payee 2 and the rest of the funds go to Payee 1 (100% of Fee minus $100). The monthly fee (Fee 2) is again being split 25/75.
Variable Amortization - Similar to the Fixed Amortization template, but you are able to set fee splits based on the payment number of a fee, allowing you to:
Example 1 - In this example we have 2 fees with 2 payees and we have set so that 100% of Payment 1 for Fee 1 (1-1) is going to the first Payee and the remaining payments (2-4) for Fee 1 are split 25/75 between the 2. Fee 1's length only extends to 4 payments. Then for Fee 2 we are splitting the payments 50/50.
Example 2 - In this example we have 2 fees and 3 payees. We have 100% of Payment 1 of Fee 1 going to the the first payee. The remaining payments, 2 thru 4, are split 3 ways; $100 going to Payee 2, $50 going to Payee 3 and the remaining funds going to Payee 1 (100% minus $150). For Fee 2 we are splitting the fee between payees 2 and 3; Payee 3 gets $100 and Payee 2 gets the remaining amount (100% minus $100).
Formula Based - This allows you to enter formulas that are used to calculate the portion of the payment going to the payee. You are able to use document tags as part of the calculations, as you will see in the example below.
Example 1 - In the first example we have 1 Fee and 2 Payees. Payment 1 of Fee 1 the entire amount is going to Payee 1. For the remaining payments (2-300) Payee 2 is getting $25 for each debt and Payee 1 is getting the remaining amount. You can see we are utilizing the tags for the fee amount {FEE1_AMOUNT} and number of debts {NUMDEBTS} in the formula.
Payee Selection
When setting up compensation templates and selecting the payees on the template, you are able to select specific Payee or have the payee assigned based on its relationship to the contact. In the above example we have assigned 'Example' payees on each which would mean when using the compensation template the credit transaction would always be tied to those payees. But, what if you wanted the credit to go to the payee of the assign company, or law firm or a user's payee? These are options you will find when setting up the Payee on a compensation template. You may do this if as a company operating with affiliates. In this case, you will want a template setup that always includes credits for the parent company and then credits for the company assigned to the contact.
Example - In the example below we have a single fee setup with an 80/20 split. For Payee 1 we have chosen "Example 1" as the Payee, this means credit transaction will always be created for this payee. For Payee 2 we have selected "--Assigned Company" this means credits will be scheduled for the default payee of the assigned company when saving the template onto a contact.
With the example client below, the credits will be scheduled so that the payee "Example 1" is getting a 20% split of the fee and the payee for "Partner Example" will have credits scheduled for 80% of the fee.
Once the client has been enrolled you will see the payment schedule includes the debit transaction and 2 corresponding credit transactions going to the respective 2 Payees; "Example 1" and "Partner Payee".
