1. SAP Glossary
  2. Incentive and Commission Management (ICM)
  3. difference valuation


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


difference valuation - Overview

  • Component: ICM

  • Component Name: Incentive and Commission Management (ICM)

  • Description: Incentive and Commission Management An estimation of the additional value created as a result of a business transaction from the company's point of view, such as when the volume of a customer contract is increased. The difference valuation takes account of preceding business transactions and documents what has changed since the last valuation.


difference valuation - Details


  • Key Concepts: Difference valuation is a feature of ICM Incentive and Commission Management (ICM) that allows users to compare the actual performance of a salesperson or team against their target performance. This comparison is done by calculating the difference between the actual and target values, and then assigning a monetary value to that difference. This allows users to quickly identify areas where performance is exceeding or falling short of expectations.
    How to use it: To use difference valuation, users must first set up a target performance level for each salesperson or team. This can be done by setting a specific value or percentage for each metric that will be used in the comparison. Once the targets are set, users can then enter the actual performance data for each metric. The system will then calculate the difference between the actual and target values, and assign a monetary value to that difference.
    Tips & Tricks: When setting up targets for difference valuation, it is important to ensure that they are realistic and achievable. Setting overly ambitious targets can lead to unrealistic expectations and can discourage salespeople from performing at their best. It is also important to ensure that all metrics used in the comparison are relevant and meaningful, as this will help ensure accurate results.
    Related Information: Difference valuation is just one of many features available in ICM Incentive and Commission Management (ICM). Other

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difference valuation - Related SAP Terms

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