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

SAP Term: retention rule

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management Defines how retention is determined. The retention rule allows the use of retention in various scenarios. Examples of retention scenarios: Retention without recall clearing such as the reserve Retention with recall clearing such as the cancellation reserve Retention of excess earnings such as guarantee offsetting

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• Key Concepts: 
  Retention rule is a feature of ICM Incentive and Commission Management (ICM) that allows companies to set up rules to retain a portion of the commission earned by sales representatives. This feature helps companies to ensure that sales representatives are incentivized to stay with the company and continue to perform well. 
  
  How to use it: 
  Retention rules can be set up in ICM by defining the percentage of commission that should be retained for each sales representative. The retention rule can be applied to all sales representatives or only to specific ones. The retained amount can be paid out at a later date or used as an incentive for future performance. 
  
  Tips & Tricks: 
  When setting up retention rules, it is important to consider the impact on sales representatives’ motivation and performance. It is also important to ensure that the rules are fair and consistent across all sales representatives. 
  
  Related Information: 
  Retention rules are just one of the features of ICM Incentive and Commission Management (ICM). Other features include commission calculation, payment processing, reporting, and analytics.