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

SAP Term: LOFO liability

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management The remuneration line with the lowest liability value is used first in the liability case.

Smart SAP Assistant

• Key Concepts:
  LOFO liability is a term used in SAP ICM Incentive and Commission Management. It stands for “Liability on First Occurrence” and is used to track the amount of money that is owed to a salesperson or other commission recipient for a particular sale. This amount is tracked in the system and can be used to calculate the total amount of money owed to the recipient.
  
  How to use it:
  In order to use LOFO liability, you must first set up the system to track the amount of money owed for each sale. This can be done by setting up a commission plan that includes the LOFO liability field. Once this is done, you can enter the amount of money owed for each sale into the system. This will then be tracked and can be used to calculate the total amount of money owed to the recipient.
  
  Tips & Tricks:
  When setting up a commission plan with LOFO liability, it is important to make sure that all of the fields are filled out correctly. This will ensure that the system is accurately tracking the amount of money owed for each sale. Additionally, it is important to make sure that all sales are entered into the system in order to ensure that all amounts are tracked correctly.
  
  Related Information:
  LOFO liability is just one of many features available in SAP ICM Incentive and Commission Management. Other features include commission calculation, payment processing, and reporting. Additionally, there are many other terms related to commission management that may be useful for understanding how LOFO liability works.