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

SAP Term: distribution rule

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management Governs the distribution of valuations or remunerations. You can use distribution rules in partnerships if a member of the partnership has concluded a business deal and the remuneration is to be split between the partners as well as in a specific commission case constellation. The distribution rule describes exactly how a certain value is to be divided up, for example, in the form of percentage rates that are assigned to the individual partners. &EXAMPLE& Partners: A B C New business 20% 30% 50% Follow-on business: 15% 25% 60%

Smart SAP Assistant

• Key Concepts: 
  A distribution rule is a set of criteria used to determine how commission payments are distributed among sales representatives in the ICM Incentive and Commission Management (ICM) module. The rule defines the criteria for how commission payments are allocated, such as by sales representative, product, or region. It also defines the percentage of commission that each sales representative will receive. 
  
  How to use it: 
  To use a distribution rule, first create a rule in the ICM module. This can be done by selecting the “Create Rule” option from the main menu. Then, enter the criteria for how commission payments should be distributed. This includes defining the percentage of commission that each sales representative will receive and any other criteria that should be taken into account when distributing payments. Once the rule is created, it can be applied to any commission payment that is made in the ICM module. 
  
  Tips & Tricks: 
  When creating a distribution rule, it is important to consider how it will affect the overall performance of your sales team. For example, if you set a high percentage of commission for one sales representative, it may lead to other sales representatives feeling undervalued and unmotivated. It is also important to consider how changes to the distribution rule may affect existing contracts with customers or vendors. 
  
  Related Information: 
  For more information on creating and managing distribution rules in ICM, please refer to SAP’s official documentation on the topic. Additionally, there are many online resources available that provide tips and best practices for setting up and managing distribution rules in ICM.