What is threshold value for reserve in SAP ICM - Incentive and Commission Management (ICM)?

SAP Term: threshold value for reserve

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management Indicates the lower limit of the total of all settlement items of a period for which a reserve is formed.

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• Key Concepts:
  Threshold value for reserve is a feature of SAP ICM Incentive and Commission Management (ICM). It is used to set a minimum amount of commission that must be earned before it can be paid out. This ensures that the commission is not paid out too quickly, and that the company has enough money in reserve to cover any potential losses.
  
  How to use it:
  The threshold value for reserve can be set in the ICM configuration. It is important to ensure that the threshold value is set at an appropriate level, as it will affect how quickly commissions are paid out. The threshold value should be set high enough to ensure that there is enough money in reserve to cover any potential losses, but low enough so that commissions are not held back for too long.
  
  Tips & Tricks:
  When setting the threshold value for reserve, it is important to consider the company’s financial situation and the amount of commission that will be paid out. If the company has a large amount of commission to pay out, then the threshold value should be set higher. On the other hand, if the company has a small amount of commission to pay out, then the threshold value should be set lower.
  
  Related Information:
  The threshold value for reserve is just one of many features of SAP ICM Incentive and Commission Management (ICM). Other features include commission calculation rules, payment methods, and reporting capabilities. For more information about ICM, please refer to SAP’s official documentation.