By definition, discrepancy is a sudden change in the transaction value. In Incentives management, a discrepancy is observed when the sale terms for which commissions/ earnings are generated had a positive or negative change, requiring rebalancing of the payouts.

Irrespective of the plan type (transaction or quota attainment), when the event is triggered, the incentives app will start the commission computation. Based on the plan type, the commission will be sent for approval and a payout will be generated for eligible recipients. upon approval. As per the company’s payroll schedule, these approved payouts will be shared with the finance team to process commissions.

At this juncture, if the customer returns the product, opts for exchange, cancels the production, or denied payment, the sale value will either be modified to a higher or lower value or completely become null. In which cases, commissions have to be adjusted or denied by issuing a clawback.

Clawback is a way to recover the payouts when the sale becomes nullified

Imagine for a sale of USD 40,000, a 5% commission payout was generated. It would have been either sent for approval or approved itself. In the upcoming payroll schedule, this USD 2000 will be added to their salary. If the customer returned the product, the sale is logically failed. To cover such cases, configuring the clawback criteria will help stop the commission from being processed.

To determine discrepancy handling and enforce clawbacks, you need to mention the discrepancy processing window in days and say from when this window must be opened.

This window in context is the return or replacement window businesses might have for customers. Products that were returned within the said number of days, a business could handle discrepancies, and clawback those generated payouts retroactively.

To manage this accurately, you can also apply cri      teria for clawbacks.