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

SAP Term: liability agreement

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management A contractual element of the commission contract. This is a combination of the liability rules in the general contract conditions. A commission contract partner is liable for the results of his or her actions carried out on behalf of the company. If remuneration is paid and the performance for which it is paid is diminished in some way, the company can demand that the remuneration be paid back in part or in full this partial recall of funds is controlled by liability rules.

Smart SAP Assistant

• Key Concepts: 
  A liability agreement in SAP ICM Incentive and Commission Management (ICM) is a contract between a company and its sales representatives that outlines the terms of the commission they will receive for selling the company’s products or services. The agreement defines the commission rate, payment terms, and other conditions that must be met in order for the sales representative to receive their commission.
  
  How to use it: 
  In SAP ICM, liability agreements are created and managed in the “Liability Agreement” tab. Here, companies can create new agreements, view existing agreements, and edit or delete existing agreements. Companies can also set up payment terms for each agreement, such as when payments will be made and how much will be paid out.
  
  Tips & Tricks: 
  When creating a liability agreement in SAP ICM, it is important to ensure that all of the terms are clearly defined and agreed upon by both parties. This will help to avoid any misunderstandings or disputes that may arise in the future. Additionally, it is important to review all of the terms of the agreement regularly to ensure that they are still applicable and up-to-date.
  
  Related Information: 
  For more information on liability agreements in SAP ICM, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/ICM/7.0/en-US