What is commission based on index-linking in SAP ICM - Incentive and Commission Management (ICM)?

SAP Term: commission based on index-linking

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management Correponds to acquisition commission for an increase as part of index-linking.

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• Key Concepts: 
  Commission based on index-linking is a feature of SAP ICM Incentive and Commission Management (ICM) that allows companies to link commission payments to an external index. This index can be used to adjust the commission rate based on market conditions, allowing companies to better manage their incentive and commission payments. 
  
  How to use it: 
  To use this feature, companies must first define the external index they wish to use. This can be done in the ICM configuration settings. Once the index is defined, companies can then set up a commission plan that links the commission rate to the external index. This will allow the commission rate to be adjusted automatically based on changes in the external index. 
  
  Tips & Tricks: 
  When setting up a commission plan that uses index-linking, it is important to consider how often the external index will be updated. This will determine how often the commission rate needs to be adjusted. It is also important to consider how much of an impact changes in the external index will have on the commission rate. 
  
  Related Information: 
  For more information about using ICM Incentive and Commission Management, please refer to SAP's official documentation. Additionally, there are many online resources available that provide tips and tricks for using ICM.