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

SAP Term: commission

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management Enterprise measure to provide specific incentives to its employees and partners to become active for the enterprise. Used as a control instrument to realize enterprise strategic goals by using monetary and non-monetary incentives. Commission is remunerated as a result of a transaction-based activity. &EXAMPLE& A sales employee receives a commission of 10% of the net value for each customer contract that is signed.

Smart SAP Assistant

• Key Concepts: 
  Commission is a form of payment made to an individual or organization for services rendered. In the context of SAP ICM Incentive and Commission Management, commission is a payment made to sales representatives or other employees based on their performance in achieving sales goals. 
  
  How to use it: 
  SAP ICM Incentive and Commission Management allows companies to set up commission plans that are tailored to their specific needs. The system allows users to define commission rates, set up payment schedules, and track performance against goals. It also provides reporting capabilities to help companies analyze their commission plans and make adjustments as needed. 
  
  Tips & Tricks: 
  When setting up a commission plan, it is important to consider the goals of the company and the performance of the sales representatives. It is also important to ensure that the commission plan is fair and equitable for all involved. 
  
  Related Information: 
  SAP ICM Incentive and Commission Management is part of the SAP ERP suite of products. It can be used in conjunction with other SAP modules such as Sales and Distribution (SD) and Financial Accounting (FI) to provide a comprehensive solution for managing commissions.