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

SAP Term: Incentive and Commission Management

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management A cross-industry application that calculates and represents all types of variable remunerations for employees and partners. It provides up-to-date information for employees, partners and managers on earned and expected bonuses. A differentiation is made between transaction-based remunerations commissions and period-based remunerations incentives. This information is clearly displayed, evaluated and made available for settlements.

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• Key Concepts: 
  Incentive and Commission Management (ICM) is a component of the SAP software suite that helps organizations manage their incentive and commission programs. It enables companies to create, manage, and track incentive and commission plans for their sales teams. ICM also provides a comprehensive view of the performance of each salesperson, allowing companies to make informed decisions about their incentive and commission plans. 
  
  How to use it: 
  ICM can be used to create incentive and commission plans for sales teams. It allows users to define the criteria for each plan, such as the type of incentive or commission, the amount of the incentive or commission, and the duration of the plan. ICM also provides tools for tracking performance, such as tracking sales goals and performance metrics. 
  
  Tips & Tricks: 
  When creating an incentive or commission plan, it is important to consider the goals of the organization. For example, if the goal is to increase sales, then a plan that rewards salespeople for meeting certain targets may be more effective than a plan that rewards them for simply making more sales. Additionally, it is important to consider how long the plan should last in order to ensure that it remains effective over time. 
  
  Related Information: 
  Incentive and Commission Management is part of SAP's Sales Performance Management suite. Other components of this suite include Sales Performance Analytics, Sales Performance Planning, and Sales Performance Optimization. These components provide additional tools for managing sales performance and optimizing incentives and commissions.