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

SAP Term: target rule

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management Consists of target values and actual values and the corresponding calculation rule. The target rule can apply to one or more commission contract partner. Example Target rule for 2004: Target type: Year-end closing Target value: Business volume USD 100,000; this target value can be achieved within the following categories: Life insurance: at least USD 60,000 Occupational disability: at least USD 40,000 Target rule for 2005: Target value: Business volume USD 120,000; this target value can be achieved within the following categories: Life insurance: at least USD 80,000 Occupational disability: at least USD 40,000

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• Key Concepts: 
  Target rules are used in ICM Incentive and Commission Management (ICM) to define the goals and objectives of a sales team or individual. They are used to set targets for sales performance, such as revenue, number of sales, or customer satisfaction. Target rules can also be used to define the rewards and incentives associated with achieving these targets. 
  
  How to use it: 
  Target rules can be created in ICM by defining the target criteria, such as revenue or customer satisfaction, and setting the target value. The target value can be set as a fixed amount or as a percentage of the total sales. Once the target rule is created, it can be assigned to a sales team or individual. 
  
  Tips & Tricks: 
  When creating target rules, it is important to consider the impact of incentives on sales performance. Incentives should be set at an appropriate level to motivate sales teams and individuals without creating unrealistic expectations. 
  
  Related Information: 
  For more information on using target rules in ICM, please refer to the SAP Help Portal.