Incentive and Commission
Management
Purpose
Incentive and Commission Management (ICM) is a cross-industry solution that enables you to map all types of variable remuneration for employees and partners. It provides up-to-date and clear information on earned and expected commission and incentives.
ICM is a control instrument 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.
Complexity Levels of ICM
ICM is made up of various ICM packages.
Depending on your branch of 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, we provide the option of designing your commission management system according to your industry-specific requirements by selecting ICM packages. Thus you can be sure of creating a commission management system that matches your requirements.
You can also add your own specific rule definitions to the preconfigured ICM packages. The ICM packages you select have a major influence on the complexity of your commission management system.
See Packages in Incentive and Commission Management.
Interfaces
ICM is fully encapsulated and is supplied with data through the inbound interface (posting business transactions).
It can be called by any other system that processes business transactions (such as sales, accounts receivable, collections) as well as any integrated SAP system, SAP remote system, or another provider’s system.
Data is transferred through a general report interface (raw data interface) or the settlement interface (disbursement program). These interfaces are batch-enabled and RFC-enabled.
The commission that is calculated is transferred to the respective disbursement systems, depending on the payee. See Link to Target Systems
Some components also have enhancement packages for their preconfigured integration; you can add additional components on a project basis using the relevant enhancement method and without modifications.
See Interfaces and Data Transfer in the Commission System
SAP Business Partner
The commission management system has defined ICM-specific enhancements to the SAP Business Partner. SAP Business Partner enables you to create and maintain business partners centrally. This is particularly useful if a business partner is important to an enterprise in different roles, such as a contract partner. The following roles exist in ICM:
· BP Role: Commission Contract Partner
· BP Role: Agent Without Own Commission Contract
SAP Organizational Management
Line relationships, project relationships and other types of relationships in a commission management system result in the distribution of remuneration, or they influence responsibilities. ICM uses SAP Organizational Management for this purpose.
See Use of Organizational Management
Further Integration and Use of Components
ICM also uses other components, depending on the level on which you intend to use ICM; for more information see the corresponding documentation.
Features
For information on the functions of ICM, see the relevant sections of the documentation under Application and Administration.
Difference to Other Specialist Areas
ICM does not calculate or save profit and loss data for the enterprise, but it can store references to these types of transactions. Portfolio assignment is a tool to help you manage these references.
ICM does not map customer data since it is based solely on the relationship between the company and its service providers. However it can store relevant references to a customer database.
ICM does not settle any expenses since this is normally covered by the HR system and is subject to additional rules (such as business entertainment and travel expenses, expenses for customers or guests, and similar expenses).
ICM does not manage the portfolio of other components. However it may accept portfolio from other components or take a snapshot of commission-relevant data in other systems, and temporarily save and document this data for the purposes of settling commissions.
Note that you can only use the ICM packages in your production system if you have bought the product. For more information, see the SAP price list or contact your sales team.
To use ICM, you must first activate the component. See Setting the Activation Switch.