What is 'guarantee' in SAP ICM - Incentive and Commission Management (ICM)?

guarantee - Overview

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management A non-performance related remuneration that is awarded for a specific period of time. The guarantee is a basic remuneration that is calculated periodically. The guarantee amount that is calculated can be offset against other remuneration forms, such as performance-related remuneration. The amount of remuneration and the period are individually agreed upon with the commission contract partner.

guarantee - Details

• 
  Key Concepts: 
  A guarantee in SAP ICM Incentive and Commission Management (ICM) is a type of incentive that is paid out to a salesperson or other employee when they meet certain performance criteria. The guarantee is typically set up as a fixed amount or percentage of the total sales made by the employee. 
  
  How to use it: 
  Guarantees can be set up in SAP ICM by creating a new incentive plan and setting the type of incentive to “guarantee”. The criteria for the guarantee can then be set, such as a minimum number of sales or a minimum amount of revenue generated. Once the criteria are met, the guarantee will be paid out to the employee. 
  
  Tips & Tricks: 
  When setting up a guarantee in SAP ICM, it is important to consider the impact that the guarantee will have on overall performance. For example, if the guarantee is too high, it may lead to employees focusing on meeting the guarantee rather than maximizing their sales performance. 
  
  Related Information: 
  SAP ICM also offers other types of incentives such as bonuses, commissions, and rewards. These incentives can be used in combination with guarantees to create an effective incentive plan that motivates employees and encourages them to reach their full potential.