Function documentationAgreements

 

You use agreements to map the individual relationships between the sold-to party and the commission contract partner.

Contractual relationships are mapped in the system with the following three modules:

  • Contract templates (standard commission contract)

  • Agreements

  • Agreement rules

You create an individual contract by assigning agreements and agreement rules to the contract template (standard commission contract).

The agreements made in contractual negotiations between sold-to party and commission contract partner become contractual elements of the individual contract.

This lets you create commission contracts quickly and in a flexible manner.

The ICM analyst can change the standard commission contract as required (version management). See Standard Commission Contract in SAP NetWeaver Portal

The structure of the contract provides a wide range of options for defining the characteristic attributes and links. The characteristic attributes of the agreements are determined by the assigned commission contract type. You configure these in Customizing.

Features

  • Standard Commission Contract

    The commission contract type allows you to differentiate functionally between the contract templates (standard contracts) in which global enterprise agreements can be defined. Different standard agreements (agreement types) can be assigned to the standard contract. You can also define which agreements are valid for the whole organization. The global agreement is used for this purpose.

  • Global Agreement

    A global agreement is valid for each commission application and for all standard commission contracts.

    In the standard delivery of ICM, valuation agreements are defined as global agreements and they are consequently valid for each commission application and for all standard commission contracts. You cannot change global agreements in Customizing.

  • Standard Agreement

    An agreement type that is valid for a specific commission application and that can be assigned to several standard contracts. It can be adapted for each standard contract.

    Example Example

    Standard Agreement for Performance-Related Remuneration

    For the sale of product A, the commission contract partner receives a remuneration of 5%. This information is defined in the standard commission contract as a standard agreement and it is taken from the standard commission contract for the remuneration calculation.

    If the commission contract partner agrees on a commission of 6% in his of her commission contract, the remuneration calculation takes account of what was defined in the individual contract.

    End of the example.

  • Universal Agreement

    A special standard agreement that is identified as a universal agreement in Customizing and that is assigned to each standard commission contract of a commission application.

    The universal agreement cannot be changed after it is assigned to a standard commission contract.

  • Individual Agreements

    You use individual agreements to tailor-make commission contracts for commission contract partners.

    Example Example

    Payment terms, terms of notice, and so on

    End of the example.

There are various control options governing the adjustment level of the agreements and also the quality of the link options. The following link types are available in ICM:

  • Link Types

    The link type determines the manner in which a standard agreement (agreement template) is linked to a standard commission contract (contract template).

    Link types determine the way in which an agreement type (standard agreement) can be used in the standard contract.

    The following link types are possible:

    • Must-Agreement

      Each standard contract must have an agreement of this type.

    • May-Agreement

      A standard contract may use this type of agreement, but it is not mandatory.

    • Should-Agreement

      It is recommended that this link type is selected.

      Should-agreements and may-agreements are available in SAP NetWeaver Portal. If, during standard contract editing, an agreement type with the should attribute is not selected, a warning is issued in the consistency check.

    Must-Not Agreement

    This type of agreement must not be used in the standard commission contract. The agreement has the "must-not" link attribute.

You also have the option of determining the adjustment level of an agreement.

The adjustment level of an agreement is determined by the adjustment level of the assigned rules.

It is possible to define different levels of deviation from a standard agreement.

Depending on its adjustment level, an agreement can be unchangeable, changeable or requiring adjustment.

  • Unchangeable Agreement

    This type of agreement is copied to the commission contract in the exact way that it is defined in the agreement template.

    No changes to the characteristic attributes of the individual contract are allowed.

  • Changeable Agreement

    This type of agreement can be copied to the commission contract in the exact way that it is defined in the agreement template.

    Changes to the characteristic attributes of the individual contract are allowed but are not necessary.

    If no changes are made, the agreement remains the same as the template definition.

  • Agreement Requiring Adjustment

    This type of agreement cannot be included in the commission contract in the exact way that it is defined in the agreement template.

    It must be adjusted. The characteristic attributes of the commission contract have to be changed.

    It is not possible to activate the commission contract without defining characteristic attributes for the selected agreement.

The following agreement types can be used in ICM:

  • Activity Agreement

  • Participation Agreement

  • Target Agreement

  • Remuneration Agreement

    This is a contractual element of the commission contract.

    The remuneration agreement determines which remuneration is paid for which commission activities, according to the participation role.

    • Agreement for Performance-Related Remuneration

      This can be direct or indirect remuneration.

    • Guarantee Agreement

    • Remuneration Clearing Agreement

      A grouping of one or more remuneration clearing rule in a clearing procedure. The flow of this procedure is determined by the sequence number in the remuneration clearing rule. The system works through the clearing rules when commission is determined. Unlike other agreement types in ICM, you can use both a global and a standard remuneration clearing agreement in the commission case.

    • Agreement for Flat-Rate Remuneration

  • Retention Agreement

  • Settlement Release Agreement

  • Communication Agreement

Activities

You make the settings for agreements in Customizing for Incentive and Sales Force Management under Incentive and Commission Management Start of the navigation path Basic and Master Data Next navigation step Standard Commission Contract End of the navigation path.