Agreements in the Commission Contract (SAP Library - Incentive and Commission Management)

Agreements in the Commission Contract

Use

You use agreements to map the individual relationships to the business partner.

Features

Each commission contract can contain a number of agreements. There are three types of agreement:

· Global

· Standard

· Individual

The following graphic illustrates the relationship between the standard commission contract, the commission contract and the various types of agreements.

The arrows indicate where the information relevant to the agreement type is defined and accessed.

This graphic is explained in the accompanying text

Agreement Type: Global

A global instance of agreements that only exists once in the company.

Global agreements are assigned to standard commission contracts, but there is only one valid agreement throughout the company. The assignment is necessary if the relationship has a time limit. In addition, this gives you the option of being able to use a global agreement as the standard agreement in individual cases.

Example

Valuation of sales activity

Valuation agreement: Ruling on the valuation types that can be used within a company. To ensure that the valuation is not dependent on the commission contract partner, the valuation agreement is a global agreement.

Agreement Type: Standard

Standard instance of the agreements of a commission contract that can be used as a basis when you are working out the contents of individual contracts.

With standard agreements that are contained in the standard commission contract, you must stipulate the extent to which they can be changed in the commission contract, meaning that they are in effect proposals. You must ensure that the consistency of the overall agreement is not adversely affected by individual entries.

Example

Standard agreement for performance-related remuneration.

For the sale of product A, the commission contract partner receives a remuneration of 12%. This information is defined in the standard commission contract as a standard agreement. When the remuneration is calculated, the commission contract references the respective agreement in the standard commission contract.

For the sale of product B, the commission contract partner receives a remuneration of 9%.

Agreement Type: Individual

You use individual agreements to tailor-make commission contracts for individual commission contract partners. You can assign a standard commission contract as template to an individual commission contract.

Example

Payment terms, terms of notice, and so on.

The standard agreement (8%) was overridden by an individual agreement (9%) in the commission contract. In the remuneration calculation, the individual agreement in the commission contract is taken into account.

The following agreements are fixed in the commission contract as standards:

· General Information

¡ Contract Data

§ Date, internal title, and so on

§ Assignment of commission contract partner to a position in the organizational structure

§ Contract currency

§ Notice agreement

¡ Activity filter (defines which activity types a commission contract partner may perform)

· Contract Relationship

¡ Higher level

¡ Lower level

¡ Lets commission contract partners build teams on the level of the commission contract and each team member participates the commission payment resulting from something like a contract acquisition.

· Global Agreement

¡ Valuation Agreements

¡ Participation Agreement

· Performance-Related Remuneration Agreement

¡ Direct and indirect remuneration

· Remuneration Clearing Agreement

· Guarantee Agreement

· Liability Agreement

· Agreement for Additional Commission Cases

· Settlement and Payment Agreement

¡ Reserve agreement

· Agreement for Settlement Scheduling