What is valuation agreement in SAP ICM - Incentive and Commission Management (ICM)?

SAP Term: valuation agreement

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management An agreement in the commission contract that is a prerequisite for calculating remuneration on the basis of specific remuneration rules. In the standard delivery of Incentive and Commission Management, valuation agreements are defined as global agreements and are consequently valid for each commission application and for all standard commission contracts.

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• Key Concepts: 
  A Valuation Agreement is a contract between a company and its sales representatives that outlines the terms of how sales commissions will be calculated and paid. It is used in SAP ICM Incentive and Commission Management to define the rules for calculating commissions for sales representatives. 
  
  How to use it: 
  In SAP ICM, a Valuation Agreement is created to define the rules for calculating commissions for sales representatives. The agreement includes details such as the commission rate, the commission period, and any additional conditions that must be met in order for the commission to be paid. Once the agreement is created, it can be used to calculate commissions for sales representatives based on their performance. 
  
  Tips & Tricks: 
  When creating a Valuation Agreement in SAP ICM, it is important to ensure that all of the details are accurate and up-to-date. This will ensure that the correct commission rate is applied and that all conditions are met in order for the commission to be paid. Additionally, it is important to review the agreement periodically to ensure that it is still valid and up-to-date. 
  
  Related Information: 
  SAP ICM Incentive and Commission Management provides a comprehensive solution for managing sales commissions. It includes features such as automated commission calculations, flexible payment options, and detailed reporting capabilities. Additionally, SAP ICM provides an easy-to-use interface for creating and managing Valuation Agreements.