What is excess earnings in SAP ICM - Incentive and Commission Management (ICM)?

SAP Term: excess earnings

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management The difference between the amount fixed in the guarantee agreement and the higher amount that an agent actually earns in the agreement period. The excess earnings are not paid out immediately, but are offset against any sub-threshold earnings.

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• Key Concepts:
  Excess earnings is a term used in ICM Incentive and Commission Management (ICM). It is the amount of money earned by an employee or salesperson that exceeds the amount of money they were expected to earn. This excess amount is usually paid out as a bonus or commission.
  
  How to use it:
  Excess earnings can be used to reward employees or salespeople for exceeding their goals. It can also be used to incentivize employees to reach higher goals. The amount of excess earnings can be determined by the company and can vary depending on the performance of the employee or salesperson.
  
  Tips & Tricks:
  When setting up an incentive program, it is important to consider how much excess earnings should be paid out. Too little may not be enough to motivate employees, while too much may lead to overspending. It is also important to consider how often excess earnings should be paid out, as this will affect the budget and overall success of the program.
  
  Related Information:
  Excess earnings are closely related to other incentive programs such as bonuses, commissions, and rewards. It is important to understand how these programs work together in order to create an effective incentive program that will motivate employees and increase sales.