What is distribution category in SAP ICM - Incentive and Commission Management (ICM)?

SAP Term: distribution category

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management Describes how the commission is divided up between the commission participants during commission calculation. An insurance company, for example, does this by using splitting, difference commission and extra commission.

Smart SAP Assistant

• Key Concepts: 
  Distribution category is a component of ICM Incentive and Commission Management (ICM). It is used to define the rules and criteria for distributing commission payments to sales representatives. It allows companies to set up different commission structures for different types of sales representatives, such as those who are based in different regions or who specialize in different product lines. 
  
  How to use it: 
  To use the distribution category, companies must first define the criteria for each category. This includes setting up rules for how much commission each type of sales representative will receive, as well as any other criteria that may be relevant. Once the criteria have been set up, companies can then assign sales representatives to the appropriate distribution category. 
  
  Tips & Tricks: 
  When setting up distribution categories, it is important to ensure that the criteria are fair and equitable for all sales representatives. Companies should also consider how changes in the market or in their own business may affect the commission structure and adjust accordingly. 
  
  Related Information: 
  The distribution category is just one component of ICM Incentive and Commission Management (ICM). Other components include incentive plans, performance metrics, and reporting tools. Companies should consider how all of these components work together to ensure that their commission structure is effective and efficient.