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

SAP Term: liability rule

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management Influences how liability is handled on the basis of the liability model that applies. The liability rule is used to define a liability type in order to reference the attributes of a liability model. The liability rule is made up of a tool of the logical service for liability OTC 03 and its parameters. &EXAMPLE& Rule 1: LIFO liability, linear calculation of non-liable remuneration => Tool: LIABILITY_LIFO Rule 2: LIFO liability, non liable remuneration based on condition technique => Tool: RESPONSIBILITY_STANDARD Rule 3: FIFO liability, linear calculation of non-liable remuneration => Tool: LIABILITY_FIFO

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• Key Concepts: 
  The liability rule in SAP ICM Incentive and Commission Management (ICM) is a feature that allows companies to set up rules that define how much of a commission or incentive should be paid out to an employee or partner based on their performance. The liability rule is used to ensure that the company is not overpaying for performance and that the employee or partner is receiving the correct amount of compensation. 
  
  How to use it: 
  The liability rule in SAP ICM can be set up by defining the criteria for payment, such as the amount of sales or number of leads generated. The rule can also be set up to include a maximum amount of commission or incentive that can be paid out. Once the criteria and maximum amount have been set, the system will automatically calculate the amount of commission or incentive that should be paid out based on the performance of the employee or partner. 
  
  Tips & Tricks: 
  When setting up a liability rule in SAP ICM, it is important to ensure that the criteria and maximum amount are set correctly. This will ensure that the company is not overpaying for performance and that the employee or partner is receiving the correct amount of compensation. Additionally, it is important to review and update the liability rule periodically to ensure that it is still relevant and accurate. 
  
  Related Information: 
  The liability rule in SAP ICM is part of a larger suite of features designed to help companies manage their incentive and commission programs. Other features include payment rules, bonus rules, and reporting capabilities. Additionally, SAP ICM integrates with other SAP products such as SAP ERP and SAP CRM, allowing companies to manage their incentive and commission programs across multiple systems.