Incentive & Commission

[Former Member]

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

[Former Member]

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?

[Former Member]

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

[Former Member]

Hello Rahul,

a) if i setup employees incentive thorugh SD rebate agreements then can it be settled in employee salary. means creation of debit memo which will post the incentive in incentive GL but how to transfer it in employee salary ? cant trace the link

b)When i run customer rebate settlement system diretly settle the discount achieved by customer. I want a check that if customer could not achieve his target then during rebate settlemnt system MUST give an error saying that Customer could not achieve his target and cant get the discount.

[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

[bcrao]

http://help.sap.com/bp_bblibrary/600/html/G63_BB_EN_US.htm

http://help.sap.com/bp_bblibrary/600/html/G64_BB_EN_US.htm

http://help.sap.com/bp_bblibrary/600/html/G72_BB_EN_US.htm

[gilmarluiz_puntel]

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.

[gilmarluiz_puntel]

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

[bcrao]

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

[Former Member]

Hello,

Can you please share the config guide with me for Extended rebate for calculating target based discount and target based incentive ?

[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..

[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..