Target Values, Actual Values, and Correction Values 

Definition

You use target values to define the target that you aim to achieve within the defined period. Actual values represent the target that is actually achieved in the given period. And with correction values you can correct the actual values of the target that was actually achieved, if necessary.

Use

Target values, actual values and correction values can be defined in different value types, such as:

●     Currency amounts: production target USD 10,000

●     Absolute amounts: number of new contracts

●     Percentage rates: increase of customer base by 4%, cancellation rates

You must define exact actual values and target values for the individual target types to be able to measure the levels of target achievement (LoT) and to derive the remuneration amounts from these. You can also specify correction values for individual actual values. The target correction values reference the master data object (commission contract or commission contract group).

Features

Target values

Target values are considered to be an element of the legal agreement between a company and a commission contract partner. Consequently the following applies for target values:

●     Versioning of target values to guarantee auditability

●     Definition of target values in the commission contract There are three different methods:

○     For an individual commission contract in the target administration system

○     For a target rule by choosing in the SAP Easy Access menu Incentive and Commission Management ® Administration ® Current Administration ® Edit Target Rules.

○     When ICM is called as the target administration system, by means of a Business Add-In (BAdI). You will find this BAdI in Customizing for Incentive and Commission Managementunder Basic and Master Data ® Standard Commission Contract ® Target Agreements ® Business Add-Ins (BAdIs) ® Dynamic Values ® BAdI: Dynamic Reading of Actual and Target Values.

●     For each elementary target type that is defined, a target value must exist in a valid period for a commission contract

Actual values

Actual values are transaction data. They should be determined algorithmically and should only be entered by the user in exceptional cases. The determined actual values are made persistent for easier comprehension.  The same applies to actual values as to target values (see above).

Correction values

Correction values are transaction data. The definition of correction values is versioned. For better auditability, changes are recorded with the user name or the process and time stamp.

Correction values can be positive or negative. The system interprets a non-existent correction value as a zero value. They are only entered by the user and can only be defined for the individual contract and not for contract groups. Correction values can be automatically adjusted or corrected in the next period.

You enter correction values as follows:

...

       1.      In the commission contract, select a standard agreement on the Target Agreements tab page.

       2.      Then select a complex target type. The Target Agreements, Periods and Target Rules screen is displayed.

       3.      Select a period and an elementary target type.

       4.      Choose Correction Values and enter your values.

       5.      Save your entries.