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

SAP Term: FIFO liability

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management A liability model whereby the remuneration that was awarded first is also recalled first in the event of a cancellation or a reduction of the valuation of a business object. FIFO = first in => first out The first remuneration to be recalled is the first remuneration that is no longer subject to liability.

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• Key Concepts:
  FIFO liability is a term used in SAP ICM Incentive and Commission Management (ICM). It is a type of liability that is created when an invoice is issued to a customer for goods or services that have been delivered. The FIFO liability is the amount of money that the customer owes to the company for the goods or services they have received.
  
  How to use it:
  In SAP ICM, FIFO liability is used to track the amount of money that a customer owes to the company for goods or services they have received. The FIFO liability is created when an invoice is issued to the customer and it is updated as payments are made. The FIFO liability can be viewed in the SAP ICM system and can be used to track customer payments.
  
  Tips & Tricks:
  When creating an invoice in SAP ICM, make sure to include the FIFO liability amount in order to accurately track customer payments. Additionally, it is important to regularly review the FIFO liability report in order to ensure that all payments are being tracked correctly.
  
  Related Information:
  FIFO liability is related to other terms such as Accounts Receivable (AR) and Accounts Payable (AP). AR and AP are used to track money owed by customers and money owed by suppliers, respectively. Additionally, FIFO liability can be used in conjunction with other financial terms such as revenue recognition and cost of goods sold.