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

SAP Term: index-linking

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management The planned increase, laid down in the insurance policy, of insurance benefits or of the premium. This is usually done on a yearly basis according to fixed percentage rates, or is linked to an index for example the cost of living index or increases in the state pension insurance.

Smart SAP Assistant

• Key Concepts: 
  Index-linking is a feature of SAP ICM Incentive and Commission Management (ICM) that allows users to adjust commission rates based on external factors such as inflation or currency exchange rates. This feature allows users to ensure that their commission rates remain competitive and up-to-date. 
  
  How to use it: 
  To use index-linking, users must first set up an index in the ICM system. This index can be based on any external factor, such as inflation or currency exchange rates. Once the index is set up, users can then link their commission rates to the index. This will allow the commission rate to automatically adjust based on changes in the external factor. 
  
  Tips & Tricks: 
  When setting up an index, it is important to choose an external factor that is relevant to your business. For example, if your business operates in multiple countries, you may want to link your commission rates to currency exchange rates. Additionally, it is important to regularly review your index-linked commission rates to ensure that they remain competitive and up-to-date. 
  
  Related Information: 
  For more information about index-linking in SAP ICM, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/SAP_ICM/7.0/en-US/f3d8f9a2b6c14e8a9f3d7c2b5f9e4d1a.html