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

SAP Term: valuation factor

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management In the case of commission, these are contractually fixed percentage surcharges or reductions on the valuation total relevant for the amount of commission, or, directly, on the standard commission rate. In production, valuation factors help to weight the commission case to facilitate the formation of a valuation total across different lines of business.

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• Key Concepts: 
  Valuation factor is a component of ICM Incentive and Commission Management (ICM). It is used to calculate the value of a commission or incentive based on the performance of an individual or team. The valuation factor is determined by the company and can be based on a variety of factors such as sales volume, customer satisfaction, or other metrics. 
  
  How to use it: 
  The valuation factor is used to calculate the value of a commission or incentive. It is determined by the company and can be based on a variety of factors such as sales volume, customer satisfaction, or other metrics. The value of the commission or incentive is then calculated by multiplying the valuation factor by the performance metric. 
  
  Tips & Tricks: 
  When setting up a valuation factor, it is important to consider how it will affect the incentives and commissions that are being offered. It is also important to ensure that the valuation factor is fair and equitable for all employees. Additionally, it is important to review the valuation factor periodically to ensure that it is still relevant and up-to-date. 
  
  Related Information: 
  For more information about ICM Incentive and Commission Management (ICM), please visit SAP’s website at https://www.sap.com/products/incentive-and-commission-management.html. Additionally, there are many resources available online that provide more detailed information about setting up and using valuation factors in ICM.