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

SAP Term: entitlement category

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management Categorization of entitlement. A category defines exactly the basis for entitlement. Such a basis may be: Signing a contract Being responsible for the portfolio or customers A contractual agreement between a direct participant and the person responsible for the acquisition The result of organizational assignment, for example, manager or consultant Membership in a partnership that participates in a business transaction Entitlement categories differentiate between indirect and direct entitlement categories. Direct entitlement: Direct participants are involved directly in achieving a particular result. A direct participant bases his or her entitlement on the commission activities of the participation, irrespective of the relationship with the other participants. Indirect entitlement: This is where a person is involved indirectly in the commission case. Remuneration here is based on the relationship with one or more direct participants.

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• Key Concepts: 
  Entitlement categories are used in ICM Incentive and Commission Management to define the type of entitlement that a user has. Entitlements can be based on a variety of criteria, such as sales volume, customer segment, or product type. Entitlement categories are used to group entitlements together and make it easier to manage them.
  
  How to use it: 
  Entitlement categories are used to define the type of entitlement that a user has. When creating an entitlement, the user must select an entitlement category from the list of available categories. This will determine which entitlements are available for the user. Once an entitlement category is selected, the user can then select the specific entitlements that they wish to receive.
  
  Tips & Tricks: 
  When creating an entitlement category, it is important to consider how it will be used. For example, if you are creating an entitlement category for sales volume, you should consider how you will measure sales volume and what criteria should be used to determine eligibility for the entitlement.
  
  Related Information: 
  Entitlement categories are closely related to other ICM features such as eligibility rules and entitlements. Eligibility rules determine which users are eligible for a particular entitlement, while entitlements define what benefits or rewards a user will receive when they meet the eligibility criteria.