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

SAP Term: target commission

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management In contrast to actual commission, target commission can be paid before the activity in question has actually been realized.

Smart SAP Assistant

• Key Concepts: 
  Target commission is a feature of SAP ICM Incentive and Commission Management (ICM) that allows companies to set commission goals for their sales teams. It enables companies to define the amount of commission they want to pay out for each sales transaction, and then track the progress of their sales teams towards achieving those goals.
  
  How to use it: 
  To use target commission, companies must first define the commission goals they want to set for their sales teams. This can be done by setting a target amount of commission for each sales transaction, or by setting a target percentage of the total sales revenue. Once these goals have been set, companies can then track the progress of their sales teams towards achieving those goals.
  
  Tips & Tricks: 
  When setting target commissions, it is important to consider the overall performance of the sales team. If the team is performing well, it may be beneficial to set higher targets in order to incentivize them to continue performing at a high level. On the other hand, if the team is struggling, it may be beneficial to set lower targets in order to give them more time to improve their performance.
  
  Related Information: 
  SAP ICM Incentive and Commission Management (ICM) also offers other features such as performance-based commissions, bonus payments, and incentive plans. These features can be used in conjunction with target commissions in order to create a comprehensive incentive system for your sales team.