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Former Member

Incentive & Commission

My client offers the sales target based incentive/commission & performance based awards to its sales force. It also offers target based discounts to its customers.

Scenario

Volume based Target of Product P was decided for an Employee A. He is going to sell:

Quantity of P = 100 LTR in Quarter 1

Quantity of P = 300 LTR in Year(cumulative target including quarter 1)

a) If Employee A achieves his quarter based target of 100 LTR, he can claim his incentive and payment will be given to him. If he could not achieve his quarterly target then he cant claim any incentive.

b) If Employee A achieve his yearly based target of 300 LTR then he can claim his incentive of 300 LTR and payment will be given to him. If he could not achieve his yearly target then he cant claim any incentive.

Questions

a) Can this requirement be fulfilled through SAP Rebates agreement ?

b) Can this requirement be fulfilled through Incentive and Commission Management Component of SAP?

Further Questions

a) Does SAP Incentive & Commission management component covers the Target based discounts for Customer and target based incentive of employees ?

b) Does SAP incentive & Commission management component covers the performance based rewards( in the form of cash or trip to employees)?

c) Any help document of Incentive and commission management component available ?

Would highly appreciate earliest response.

Edited by: Asif Siddique on Aug 10, 2010 6:10 PM

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6 Answers

  • Aug 10, 2010 at 05:25 PM

    Hi,

    use Extended Rebate Processing with Customer (GX6) building block perioadic settlement-of rebates

    for ICM-yes-using ICM you will achieve your need too.

    icm config guide for DBM i am having- you can down load it from is-auto-dbm either from help.sap.com or market place

    Thanks

    Chidambaram

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    • Former Member

      chidambaram...could you please share the best practice for icm..i tried looking at is auto but cudnt find it? cud u please share the path for the same or paste the url..

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    Former Member
    Aug 11, 2010 at 03:17 AM

    Hi!

    Let me share something with you:

    We have a business scenario with a lot of more requirements, and in the 4.6 version, we customized all the comission application (Z programs).

    We are in an upgrade phase, and in ECC 6.0 we studied some new SAP funcionalities, specially ICM, but nothing was implemented yet (just technical upgrade).

    But, together with SAP consulting, the best solution we've find until this moment to our scenario, was Vistex.

    Apparently, your businnes scenario is simple, and with ICM possibly you will achieve 100% of your scenario.

    [Help on ICM|http://help.sap.com/saphelp_erp60_sp/helpdata/en/c2/55f7783ac311d3a6a00000e83dda02/frameset.htm]

    Take a look at this link:

    [Incentive and Commission Management - Business Scenario|http://www50.sap.com/businessmaps/110A53AB153E42608996386B45722F35.htm]

    I don't have any experience with ICM, but I really hope that these documentations helps you.

    [Incentive and Commission Management - Main Process|http://www50.sap.com/businessmaps/EAF02FDC3D674962981753550E9D0ABC.htm]

    Edited by: Gilmar Luiz Puntel on Aug 11, 2010 5:26 AM

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    Former Member
    Aug 11, 2010 at 03:27 AM

    Remember that ICM is a business function (enhancement) and need to be activated through customizing, and can't be undone, until where I know.

    [ICM Business Function - ICM|http://help.sap.com/saphelp_erp60_sp/helpdata/en/42/fbded750e61febe10000000a422035/frameset.htm].

    I don't have any experience with ICM, but I really hope that these documentations helps you.

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  • Aug 17, 2010 at 11:21 AM
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    Former Member
    Sep 03, 2010 at 06:44 PM

    a) If Employee A achieves his quarter based target of 100 LTR, he can claim his incentive and payment will be given to him. If he could not achieve his quarterly target then he cant claim any incentive.

    Ans - Assuming the employee is identified on the order or you can derive a relationship for the employee using some other partner functions on the order, you can calculate a periodic incentive for him using ICM targets. There are couple BADIs available which will allow you to do that. Part I didn't understand, why does he need to claim?

    b) If Employee A achieve his yearly based target of 300 LTR then he can claim his incentive of 300 LTR and payment will be given to him. If he could not achieve his yearly target then he cant claim any incentive.

    Ans- You can assign levels of achievements and deliver the same result based on 100 achievement or 300 achievement.

    ICM can pay "any entity" meaning, customer, vendor, partner, employee and can direclty be integrated to FI-AR (not to SD CMR/DMR), FI-AP, HR-PY, FI-CA, FS-CD or any other non-SAP payment system.

    Regards

    Rahul

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    • Former Member Former Member

      Hello Asif,

      We are talking about 2 different things. I am not talking about any functions within SD. But there is a separate SAP module called ICM (which does not use Rebate agreements, or credit memos). You would have to configure this module to enable the employee/customer payments using a single module.

      Regards

      Rahul

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    Former Member
    Sep 09, 2010 at 01:10 AM

    Hi,

    Even we have a scenario where we need to pay certain royalty to our customer based on sales generated from using their premises...

    now we are exploring two options...rebate functionality in SD and incentive and commission..my question is with rebate we can use accrual functionality wherein we reserve certain amount of royalty for customer once we make a sale and then post it together at end of month..

    can we use accrual functionality for Incentive as well?

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