Application 

Initial situation in the company

Managing commissions in the applications that are currently available is a difficult task for many enterprises. The systems are often unwieldy and sometimes interwoven with operational systems (such as in-force business management systems, or collection systems).

Adapting rules and commission rates often goes hand in hand with difficult software adaptations, which is reflected in high costs and time delays. In the dynamically growing market place, this is an additional weak spot when developing new products and adapting modern sales control using monetary and non-monetary incentives. The trend towards a one-stop financial services market is forcing many companies to think seriously about implementing a commission system. Independent and flexible solutions are needed to guarantee quick reaction times.

Capabilities of Commission Management

With SAP Incentive and Commission Management, you can control the sales activities in a company using monetary incentives and you can manage all the necessary transactions, agreements and data.

It deals with all usual forms of sales remuneration such as commission, brokerage, profit sharing, bonuses and cancellations. The commission system can be used across all industries and lines of business. This is particularly important if you are thinking about one-stop financial services in the future.

The system meets the wide range of requirements using freely definable valuation and calculation rules, distribution and disbursement rules, and auditable transactions in the commission contract. This provides a high degree of flexibility.

The clear encapsulation of the commission application and the simple option of setting up your own fully-maintained interfaces to upstream and downstream systems mean that the application can be implemented in many areas, thus increasing its beneficial value.

The following graphic shows the functions of Incentive and Commission Management.

The customer must have a system for managing commission-relevant processes. This system supplies the relevant data to Incentive and Commission Management. The commission case must be reported by this system to Incentive and Commission Management with all the relevant data for the business case. This includes the primary staff members and the business partners (in other words, those directly involved in the business case).

Integration

Incentive and Commission Management is fully encapsulated and can only be supplied with data through the commission interface (posting business transactions). Data is transferred through the following interfaces, both of which use batch and RFC-enabled:

·         Report interface (raw data interface)

·         Settlement interface (disbursement program)

 

The commission system uses ICM-specific enhancements to the SAP business partner (SAP BP).

 

Incentive and Commission Management can be called up by any other systems that process business transactions (for example, collections systems, sales systems, accounts receivable systems and integrated SAP systems, SAP remote systems, as well as systems from other providers).

The calculated commission is transferred individually to the appropriate disbursement system for the commission recipient. The following SAP systems are available:

 

●     Collections and Disbursements (FS-CD)

●     Payroll (HR-PY)

●     Financial Accounting (FI-AP)

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Interfaces based on the BTE method  are provided for these SAP systems.

You can, of course, transfer the commissions to non-SAP systems.