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

SAP Term: commission model

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management A context modeled by customers to efficiently describe and monitor an incentive model for your incentive and commission management or motivation strategy for certain business divisions, partners and employees. Depending on the requirements of the your solution, this commission model may represent a part of the corporate group that is a separate entity from a legal or operational point of view, or it may even represent the entire group. Examples of independent units in this sense are business areas, branch offices in a particular country, or hosted partner applications. To help you model your own commission application, SAP provides ISF packages to which you can add your own specific rules.

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• Key Concepts: 
  A commission model is a set of rules and parameters used to calculate commissions for sales representatives in the ICM Incentive and Commission Management (ICM) component of SAP. It defines the criteria for calculating commissions, such as the type of commission, the amount of commission, and the conditions under which it is paid. 
  
  How to use it: 
  The commission model is used to define the criteria for calculating commissions for sales representatives in ICM. It can be used to define different types of commissions, such as fixed or variable, and to set conditions for when they are paid. The commission model can also be used to define how much commission is paid out for each sale. 
  
  Tips & Tricks: 
  When setting up a commission model in ICM, it is important to consider the different types of commissions that may be applicable and to ensure that all conditions are clearly defined. It is also important to ensure that the commission model is regularly updated to reflect any changes in sales or market conditions. 
  
  Related Information: 
  For more information on setting up a commission model in ICM, please refer to the SAP Help Portal or contact your local SAP representative.