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

SAP Term: difference commission

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management Unlike the absolute commission, this type of commission indicates the amount that the commission of each participant differs from the commission of the other participants in the commission case.

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• Key Concepts: 
  Difference commission is a type of commission that is calculated based on the difference between the target and actual sales performance. It is used to incentivize sales teams to reach their targets and reward them for exceeding them. It is a feature of SAP's ICM Incentive and Commission Management (ICM) module.
  
  How to use it: 
  The ICM module allows users to set up difference commission plans for their sales teams. The plans can be customized to include different target levels, commission rates, and other parameters. Once the plan is set up, the ICM module will automatically calculate the difference commission for each salesperson based on their performance.
  
  Tips & Tricks: 
  When setting up a difference commission plan, it is important to consider the target levels and commission rates carefully. Too low of a target or too high of a commission rate may not be effective in motivating sales teams to reach their goals.
  
  Related Information: 
  The ICM module also includes features such as quota management, performance tracking, and reporting capabilities. It can be used in conjunction with other SAP modules such as Sales and Distribution (SD) and Materials Management (MM).