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

SAP Term: remuneration agreement

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management A contractual element of the commission contract. The remuneration agreement determines what remuneration is paid, depending on the participation role, for which commission activities.

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• Key Concepts: 
  A remuneration agreement is a contract between an employer and an employee that outlines the terms of the employee’s compensation. It typically includes details such as salary, bonuses, commissions, and other forms of payment. In SAP ICM, a remuneration agreement is used to define the rules and conditions for calculating and paying out incentives and commissions to employees.
  
  How to use it: 
  In SAP ICM, a remuneration agreement is created in the system by defining the rules and conditions for calculating and paying out incentives and commissions. This includes setting up the criteria for eligibility, defining the calculation formulas, setting up payment schedules, and more. Once the agreement is created, it can be used to calculate and pay out incentives and commissions to employees based on their performance.
  
  Tips & Tricks: 
  When creating a remuneration agreement in SAP ICM, it is important to ensure that all of the criteria for eligibility are clearly defined. This will help ensure that only eligible employees are able to receive incentives or commissions. Additionally, it is important to ensure that all of the calculation formulas are accurate so that employees are paid out correctly.
  
  Related Information: 
  SAP ICM provides a comprehensive solution for managing incentives and commissions. It allows employers to create remuneration agreements that define the rules and conditions for calculating and paying out incentives and commissions to employees. Additionally, SAP ICM provides tools for tracking performance metrics, managing payments, and more.