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

SAP Term: commission guarantee

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management Usually an agreement for a particular period of time where a certain minimum amount of commission is guaranteed per month. If the commission earned does not amount to the commission guarantee, the difference is paid out. This amount does not usually have to be paid back. Commission earnings over and above the commission guarantee can be disbursed.

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• Key Concepts: 
  Commission guarantee is a feature of SAP ICM Incentive and Commission Management (ICM) that allows companies to guarantee a minimum commission payment to sales representatives. This feature helps to ensure that sales representatives are compensated for their efforts, even if their sales do not meet the company's expectations. 
  
  How to use it: 
  To use the commission guarantee feature, companies must first set up a commission plan in SAP ICM. This plan should include the minimum commission payment that will be guaranteed to sales representatives. Once the plan is set up, the commission guarantee feature will automatically calculate and pay out the minimum commission amount to sales representatives when their sales do not meet the company's expectations. 
  
  Tips & Tricks: 
  When setting up a commission plan in SAP ICM, it is important to consider the company's budget and goals when determining the minimum commission payment that will be guaranteed. Additionally, it is important to ensure that the commission plan is regularly reviewed and updated as needed. 
  
  Related Information: 
  SAP ICM also offers other features such as performance-based commissions, bonus payments, and incentive payments. Additionally, SAP ICM can be used to track and manage sales performance data, allowing companies to better understand their sales representatives' performance and make informed decisions about their compensation plans.