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

SAP Term: retention

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management Monetary or non-monetary entitlement that is deferred instead of being passed on to the commission recipient. Retention is used in different scenarios in various forms: Retention without recall clearing example: reserve Retention with recall clearing example: cancellation reserve Retention of excess earnings example: guarantee offsetting

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• Key Concepts: 
  Retention in ICM Incentive and Commission Management (ICM) is a feature that allows companies to retain a portion of the commission earned by sales representatives. This feature allows companies to ensure that sales representatives are incentivized to stay with the company and continue to perform well. 
  
  How to use it: 
  Retention in ICM can be set up by defining a retention percentage for each sales representative. This percentage will be applied to the total commission earned by the sales representative, and the retained amount will be held in a separate account. The retained amount can then be used as an incentive for the sales representative to stay with the company. 
  
  Tips & Tricks: 
  When setting up retention in ICM, it is important to consider the impact that this feature will have on the overall commission structure. It is also important to ensure that the retention percentage is fair and reasonable for each sales representative. 
  
  Related Information: 
  Retention in ICM is closely related to other features such as bonus payments and performance-based incentives. It is important to understand how these features interact with each other in order to ensure that the overall commission structure is fair and effective.