What is early cancellation liability in SAP ICM - Incentive and Commission Management (ICM)?

SAP Term: early cancellation liability

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management A special form of cancellation liability that occurs in customer contracts with long terms. It has an influence on the complete or partial recalculation of a business transaction that is cancelled before the end of its term.

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• Key Concepts: 
  Early cancellation liability is a feature of SAP ICM Incentive and Commission Management (ICM) that allows companies to manage the financial impact of early cancellations of contracts. It helps companies to accurately calculate the amount of money they are owed for early cancellations and to ensure that they are not overpaying for services that have been cancelled.
  
  How to use it: 
  Early cancellation liability can be used to calculate the amount of money owed for early cancellations of contracts. This is done by taking into account the terms of the contract, such as the length of the contract, the amount of money paid upfront, and any other fees associated with the contract. The calculation will then be used to determine the amount of money that is owed for the early cancellation.
  
  Tips & Tricks: 
  When using early cancellation liability, it is important to ensure that all relevant information is taken into account when calculating the amount of money owed. This includes any fees associated with the contract, as well as any discounts or incentives that may have been offered. Additionally, it is important to ensure that all calculations are accurate and up-to-date in order to avoid any discrepancies or disputes.
  
  Related Information: 
  Early cancellation liability is just one feature of SAP ICM Incentive and Commission Management (ICM). Other features include commission tracking, incentive management, and performance tracking. Additionally, SAP ICM can be used to manage customer relationships and loyalty programs.