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

SAP Term: pro rata liability

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management A liability model whereby all remunerations that are subject to liability are recalled proportionally in the event of a cancellation or reduction of the valuation of a business object.

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• Key Concepts:
  Pro rata liability is a feature of SAP ICM Incentive and Commission Management (ICM) that allows companies to manage their liabilities for incentive and commission payments. It enables companies to calculate the amount of liability they have for each payment period, based on the total amount of incentives and commissions earned by employees.
  
  How to use it:
  Pro rata liability can be used to manage the amount of liability a company has for incentive and commission payments. It allows companies to calculate the amount of liability they have for each payment period, based on the total amount of incentives and commissions earned by employees. This feature can be used to ensure that the company is not over-exposed to liability for incentive and commission payments.
  
  Tips & Tricks:
  When using pro rata liability, it is important to ensure that the total amount of incentives and commissions earned by employees is accurately tracked. This will help ensure that the company is not over-exposed to liability for incentive and commission payments. Additionally, it is important to ensure that the company’s accounting system is up-to-date with all relevant information regarding incentive and commission payments.
  
  Related Information:
  Pro rata liability is closely related to other features of SAP ICM Incentive and Commission Management (ICM), such as incentive calculation, commission calculation, and payment processing. Additionally, it is important to understand how pro rata liability works in conjunction with other accounting processes, such as accounts payable and accounts receivable.