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

SAP Term: valuation type

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management Defines a method of determining the valuation of a business object. The determination type determines the rules and parameters for calculating the valuation. It also determines the business object categories for which the remuneration type is applied. &EXAMPLE& Valuation type: Leasing contracts Ten valuation points are awarded for every 100 euros of the leasing rate. Valuation type: Purchase contracts 10% of the contract amount is taken to be the valuation amount.

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• Key Concepts:
  Valuation type is a feature of ICM Incentive and Commission Management (ICM) that allows users to define the way in which they want to calculate the value of a particular incentive or commission. It is used to determine the amount of money that will be paid out for a given incentive or commission. Valuation types can be based on different criteria such as quantity, value, or percentage.
  
  How to use it:
  Valuation types are used to define the calculation method for an incentive or commission. To set up a valuation type, users must first define the criteria that will be used to calculate the value of the incentive or commission. This can include quantity, value, or percentage. Once the criteria has been defined, users can then select a valuation type from the list of available options.
  
  Tips & Tricks:
  When setting up a valuation type, it is important to consider how it will affect the overall cost of an incentive or commission. For example, if a user selects a valuation type that is based on quantity, then they should ensure that they have enough inventory to cover the cost of the incentive or commission.
  
  Related Information:
  Valuation types are closely related to other features of ICM Incentive and Commission Management (ICM) such as pricing rules and payment terms. It is important to understand how these features interact with each other in order to ensure that incentives and commissions are calculated accurately and efficiently.