What is brokerage in SAP ICM - Incentive and Commission Management (ICM)?

SAP Term: brokerage

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management Remuneration that a broker receives for the brokerage of business. The amount is specified for the broker, mostly a percentage or per mille value of the business that he or she brought. Free-lance brokers stock exchange, insurance do not usually have fixed brokerage rates - these are agreed upon individually for each case. The brokerage differs from the acquisition commission in that the same percentage of the contribution or another basis amount is paid yearly throughout the entire duration of the contract. This applies for as long as the contract is valid or the contract customer is paying contributions and the broker is managing the contract in agreement with the sold-to party. Brokerage is remunerated for a period-based activity. &EXAMPLE& An insurance broker provides a life insurance. For this business, the broker receives a brokerage of 40%. If the contract is cancelled during the liability period, the broker must repay the relevant proportion of the b

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• Key Concepts: 
  Brokerage is a type of commission that is paid to an intermediary for services rendered in the sale of goods or services. In SAP ICM, brokerage is used to calculate and manage commissions for sales representatives, brokers, and other intermediaries. 
  
  How to use it: 
  In SAP ICM, brokerage is used to calculate and manage commissions for sales representatives, brokers, and other intermediaries. The system allows users to define commission plans, set up commission rules, and track payments. It also provides reporting capabilities to help users analyze their commission data. 
  
  Tips & Tricks: 
  When setting up a commission plan in SAP ICM, it is important to consider the different types of commissions that may be applicable. For example, some plans may include a flat fee or a percentage of the sale price. It is also important to consider the different types of intermediaries that may be involved in the sale. 
  
  Related Information: 
  SAP ICM also provides features such as incentive management, performance management, and analytics. These features can be used to track and analyze sales performance and identify areas for improvement. Additionally, SAP ICM can be integrated with other SAP solutions such as SAP ERP and SAP CRM to provide a comprehensive view of sales performance across the organization.