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

SAP Term: settlement rule

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management Describes the settlement in . The settlement rule is stored in the settlement agreement. It defines which types of remuneration are settled. Each settlement rule refers to a single settlement type.

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• Key Concepts: 
  Settlement rules are used in ICM Incentive and Commission Management (ICM) to define the conditions under which a commission or incentive is paid out. They are used to determine the amount of commission or incentive that is due to a salesperson or other employee based on their performance. 
  
  How to use it: 
  Settlement rules are used to define the criteria for when a commission or incentive is paid out. This includes setting the amount of commission or incentive that is due, as well as any other conditions that must be met before the payment is made. The rules can be set up for individual employees, groups of employees, or even entire organizations. 
  
  Tips & Tricks: 
  When setting up settlement rules, it is important to consider the goals of the organization and how they will be affected by the rules. It is also important to consider any potential conflicts of interest that may arise from the rules. Additionally, it is important to ensure that the rules are fair and equitable for all employees involved. 
  
  Related Information: 
  Settlement rules are closely related to other ICM features such as performance metrics, bonus plans, and reward programs. It is important to understand how these features interact with each other in order to ensure that the desired outcomes are achieved. Additionally, it is important to understand how settlement rules interact with other financial systems such as payroll and accounting in order to ensure accuracy and compliance with regulations.