1. SAP Glossary
  2. Incentive and Commission Management (ICM)
  3. absolute commission



What is absolute commission in SAP (ICM - Incentive and Commission Management (ICM))?



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SAP Term: absolute commission

  • Component: ICM

  • Component Name: Incentive and Commission Management (ICM)

  • Description: Incentive and Commission Management Unlike the difference commission, this type of commission indicates the amount of commission that is absolute for each participant, without taking account of any other participants in the commission case.


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  • Key Concepts: 
    Absolute commission is a type of commission in SAP ICM Incentive and Commission Management (ICM). It is a fixed amount of money that is paid to an employee or salesperson for achieving a certain goal or milestone. This type of commission is typically used when the goal or milestone is easily measurable and can be tracked over time. 
    
    How to use it: 
    In SAP ICM, absolute commission can be set up by creating a commission plan. This plan will define the goals and milestones that need to be achieved in order to receive the commission. Once the plan is created, it can be assigned to employees or salespeople who will then be eligible to receive the commission if they meet the criteria. 
    
    Tips & Tricks: 
    When setting up an absolute commission plan, it is important to make sure that the goals and milestones are achievable and realistic. This will ensure that employees or salespeople are motivated to reach their goals and will also help to ensure that the commission is paid out accurately. 
    
    Related Information: 
    SAP ICM also offers other types of commissions such as relative commissions, which are based on a percentage of sales or profits. Additionally, SAP ICM also offers bonus plans which can be used to reward employees or salespeople for achieving certain goals or milestones.
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