Dedicated Commission Contracts 

Definition

A dedicated commission contract is a contract that is only permitted for your own business or for a maximum of one partnership.

Use

This concept allows the system to uniquely determine a partnership on the basis of a commission contract. You can activate the setting for your commission application globally by setting the Dedicated Commission Contracts switch in Customizing for Incentive and Commission Management under Basic and Master Data ® Partnerships ® Set Switch for ‘Dedicated Commission Contracts'.

You should set the Dedicated Commission Contracts switch before making any settings for a new commission application. If you have already worked with the application, you should only set the switch if you are sure that no commission contract is a member of multiple partnerships.

Integration

Depending on whether the switch is active or inactive, there are certain advantages and disadvantages with the way Incentive and Commission Management works:

·        Switch is active:

Commission contracts can only be members in one partnership, or none.

¡        Advantage:

You only have to specify the contract number to identify a partnership. A business partner can be involved in several partnerships as the owner of several commission contracts, while pursuing his or her own business at the same time.

¡        Disadvantage:

A separate commission contract must be created for each membership in a partnership as well as for the business partner’s own business. A commission contract cannot be assigned to more than one partnership.

·        Switch is inactive:

Allows flexible use of commission contracts. You can use one contract in multiple partnerships.

¡        Advantage:

Less administrative effort since you only have to create commission contracts for the business partner's own business and for each membership in a partnership.

¡        Disadvantage:

When it comes to the settlement of a business in a partnership, you must specify the partnership details.