In this topic ,we will discuss about Incentive & Commission process ,Configuration in SAP Sales & distribution
Let understand concept ,Incentive & Commission management widely know as ICM
Incentive / Commission is a variable remuneration for employees and partners.
These are to realize enterprise strategic goals like improved sales performance or quality, cost reductions or other types of value creation to the organization and can be monetary or non-monetary in nature
Purpose of ICM
Incentive & Variable compensation is a very effective level for aligning behavior such as sales performance with Corporate Goals. In highly competitive markets businesses need a highly motivated sales force. Flexible and Performance related compensation is the steering instrument for increasing performance. It is used to align sales force and employee performance to Organizational business goals. In dynamic world, Companies organizational structure, sales channels, and product offerings often changes and calculation rules also changes proportionately and rapidly. when changes occur compensation is a significant cost element in businesses. Accuracy in calculations and cost control is important. To keep pace with that we need a flexible tool to calculate compensation types. Incentive and Compensation Management (ICM) is focused on calculating variable awards for co
Whether you sell cars, insurance policies, or e-commerce services, incentive compensations and commissions play an essential role in your sales management
Used as a strategic tool, incentives and commissions help you to improve employee performance and reduce costs.
ICM is used to address this complex business process.
History of ICM
Systems as a partner. The target was to build an industry-specific solution in a first step and to make this available throughout different industries in a second step. The first step was focused on the insurance industry, targeting the high end of market requirements.FS-CS (Financial Services –Commission System) was developed together with 4 charter
Clients in Release4.51. The second step building ICM as a cross-industry follow-up of
FS-CS started in 2001. One focus in this step were the CRM and HR integration. Further focus was the enhancement of the commission modeling and calculation capability.
In 2003 and 2004, ICM began to gain ground in further target markets. Together with the hereditary ones, the targeted markets are:
- Automotive
- Banking
- High Tech & Electronics
- Insurance
- Media
- Telecommunications
- Trade & Wholesales
Basic understanding of ICM
ICM is a control tool which is used to realize strategic enterprise goals for monetary and non-monetary incentives, for example, improved sales performance or quality, cost reductions or other types of value creation for your organization.. The flexible nature of ICM allows you to react swiftly to changing circumstances. When the enterprise strategy is changed, this can be reflected immediately in ICM.
Depending on business, market situation and enterprise structure, the business requirements vary, and this is reflected in the different levels of complexity offered by ICM. Since the various branches of industry are very different from each other, SAP provide the option of designing customers own commission management system according to your industry-specific requirements by selecting ICM packages. Thus ensuring of creating a commission management system that matches business requirements exactly. SAP also provided option of adding customer specific rule definitions to the preconfigured ICM packages
Packages & Component
Business Process Overview
SAP Solution Integration
Master Data Component
To continue
