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

SAP Term: knockout criterion

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management Indicates the criterion that excludes certain factors from the valuation for target agreements. An elementary valuation is identified as the knockout criterion in the valuation aggregation for target agreements. The result of the elementary valuation must be 0 or 1. This value is multiplied by the weighted total of the other valuations.

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• Key Concepts: 
  Knockout criterion is a feature of ICM Incentive and Commission Management (ICM) that allows users to set conditions that must be met in order for a commission to be paid out. This criterion can be used to ensure that certain criteria are met before a commission is paid out, such as a minimum sales target or a certain number of sales.
  
  How to use it: 
  To use the knockout criterion feature, users must first define the criteria that must be met in order for a commission to be paid out. This can include setting a minimum sales target, or setting a certain number of sales that must be achieved before the commission is paid out. Once the criteria have been set, users can then configure the system to automatically apply the knockout criterion when calculating commissions.
  
  Tips & Tricks: 
  When setting up the knockout criterion, it is important to ensure that the criteria are realistic and achievable. Setting too high of a target may discourage sales staff from achieving their goals, while setting too low of a target may result in commissions being paid out too easily. It is also important to ensure that the criteria are clearly communicated to all relevant parties so that everyone understands what needs to be achieved in order for commissions to be paid out.
  
  Related Information: 
  The knockout criterion feature is closely related to other features of ICM Incentive and Commission Management (ICM), such as performance targets and bonus structures. It is important to understand how these features work together in order to ensure that commissions are paid out accurately and fairly.