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

SAP Term: cancellation liability

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management Influences the complete or partial recalculation of a business transaction for which remuneration has already been disbursed. &EXAMPLE& If, in business transaction "Customer Contract Acquisition", a commission was disbursed and then cancelled, this cancellation or partial cancellation can result in a new liability and the remuneration that was already disbursed may be completely or partially recalled in the liability process.

Smart SAP Assistant

• Key Concepts: 
  Cancellation liability is a term used in SAP ICM Incentive and Commission Management (ICM). It refers to the amount of money that must be paid back to a customer when a contract is cancelled. This amount is calculated based on the terms of the contract and the amount of time that has passed since the contract was signed. 
  
  How to use it: 
  In SAP ICM, cancellation liability is calculated automatically when a contract is cancelled. The system will take into account the terms of the contract, such as the length of time since it was signed, and calculate the amount that must be paid back to the customer. This amount will then be deducted from the total amount due to the customer. 
  
  Tips & Tricks: 
  When calculating cancellation liability, it is important to ensure that all relevant information is taken into account. This includes any discounts or incentives that were offered at the time of signing, as well as any changes in market conditions since then. 
  
  Related Information: 
  Cancellation liability is closely related to other terms such as early termination fees and liquidated damages. These terms are all used to describe the amount of money that must be paid back to a customer when a contract is cancelled. It is important to understand how these terms differ in order to ensure that customers are not overcharged for cancelling their contracts.