What is effective date in SAP ICM - Incentive and Commission Management (ICM)?

SAP Term: effective date

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management The date on which an object must be effectively valid. The effective date determines the date on which all objects used in a process, such as the commission contract, remuneration type, and standard contract, must be effectively valid. The effective date always refers to the time zone of the system clock on the database server.

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• Key Concepts: 
  Effective date is a term used in SAP ICM Incentive and Commission Management (ICM). It is the date when a particular commission or incentive plan becomes active and can be used to calculate commissions or incentives. This date is set by the administrator of the ICM system and can be changed at any time. 
  
  How to use it: 
  The effective date is used to determine when a particular commission or incentive plan will become active. The administrator of the ICM system can set the effective date for each plan. This date can be changed at any time, allowing the administrator to adjust the plan as needed. 
  
  Tips & Tricks: 
  When setting an effective date for a commission or incentive plan, it is important to consider the timing of when the plan will become active. For example, if a plan is set to become active on January 1st, it may be beneficial to set the effective date for December 31st so that it will become active on the first day of the new year. 
  
  Related Information: 
  The effective date is just one of many features available in SAP ICM Incentive and Commission Management (ICM). Other features include commission calculation rules, incentive calculation rules, and reporting capabilities. All of these features can be used to create an effective commission or incentive plan that meets the needs of your organization.