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Incentive & Commission Management
Analytics ReportingPlanning &
Forecasts [-]Simulation [-]
Business Logic ValuationEntitlements & Claims
Payments & Schedules Liabilities
Targets & Bonuses Assignments & Segmentations
Partnerships, Agencies & Channels Transfers
Accounting Settle2PayReserves Accruals [-] Flat Rates & GuaranteesContract Accounts Business Accounts
[-]
Solution Integration SAP for Insurance my SAP ERP mySAP CRM
User Productivity WorkflowWorkcenter Self Services [-]
Service Architecture CalculationsDeterminations Audit SupportModelling & Construction Mass Services
Licenses & Qualifications [-]
Contracting & Correspondence
[-] Future Focus
Risk Analysis [-]
Adjustments
Focus AreasICM 2005
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FS-PM e.a.
ICM / FS-CSPFO
Basis like Tools
Licensing
Planning&
Analytics
Partner skills, credentials, potentials
[future scope]
Assigned tasksin details
Partner motivation, incentives
Built on Netweaver,
Decoupledfrom ERP/ECC
Interfaces Services
What-if scenarios,analytical content
[future scope]
ICM and Its Context
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Complex TargetAttainment Calculations
ICM Package Landscape & Dependencies (ERP2005)
Kernel PackageCACS00
CondTechniqueCACSSD
Settlement SchedulesCACS25
Actual CommissionCACS27
Settlement HR-PYCACSHR
Settlement FS-CDCACSCD
Settlement FI-AP/ARCACSFI
Drilldown ReportingCACSRC
SAP for InsuranceFSCS01
mySAP CRMCRM001
Portfolio AssignmentPFO100
PartnershipsCACS42
Target AgreementsCACS26
Complex ValuationCACSTX
Simple CalculationCACSM2
BW SupportCACSBW
TransfersPFO110 / CACS41
Transfer FWCACSOA
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Partnership: ScopePartnership: Master DataPartnership: Commission CasePartnership: Customizing & Configuration
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Requirements: Teams and Partnerships
TEAM: Group of commission contract holders that are to work together on a contractual basis by
Sharing knowledge Exploiting synergies regarding their expertise and customer poolUsually no limitation with respect to the duration of the contract
PARTNERSHIP: combination of (usually two) agents, A senior and a junior, with the aim of Gradually transferring responsibilities and expertise
COMMISSION: Will be distributed toAgent responsible for the business Remuneration group
REQUIREMENTS:Dependence of distribution of remuneration on criteria computed at runtime and automatically determine team members at runtime
LIMITATIONS:, Support of “activity participation” only (valuation is distributed)No “Nesting” of teams of partnerships
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Scope: Summary of Functions
“Partnerships” is the name of the new ICM functions to fulfill these requirements by:
Grouping commission contracts in a contract bundle
Allowing a member of the partnership or the partnership itself to act as a placeholder for the whole partnership within acommission case
Providing functions to distribute remunerations among themembers according to the partnership-specific rules stored in the bundle
Allowing members to be treated like direct participants incommission case in certain respects (e.g. regardingdetermination of indirect participants)
Extending existing concepts of determination of (direct/indirect)participants
©SAP AG 2005
Partnership: ScopePartnership: Master DataPartnership: Commission CasePartnership: Customizing & Configuration
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Master Data I: Elements
What makes up a partnership?
Prerequisites (Contract types etc.)
A partnership consists of:
A contract bundle of a certain type
Member contracts (ordinary commission contracts)
Exactly one group contract
Configuration (master data of partnership)
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Master Data II – Group Contract
The group contract:
Represents the legal aspects of the partnership
Is (almost) an ordinary commission contract
Must be in a one-to-one correspondence with the partnership (and can be used only once)
Needs a standard contract based on special contract type (torepresent partnerships)
The underlying standard contract May have any agreement (possible uses: correspondence, bonus points for group achievements, …) Must have at least a participation agreement (and has, automatically, a valuation agreement)
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Master Data II: Creating a Partnership
How do I create a partnership?
(Assuming the commission application is already configured to support partnerships)
Create commission contracts of partnership members (if necessary) and save as active
Create the group contract for the partnership, save as active
Create the contract bundle for the partnership(*)
Enter configuration data specific to this partnership
(*) The entry screen for creating the bundle may be called automatically after creating any group contract. In this case the field for the group contract will be pre-assigned with the group contract you have just created
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Master Data III: Creating a Partnership, Screenshots
Alternatively (if [group] contracts already exist):
Go to CACS Menu, choose:Master Data -> Contract Bundle -> Create
Enter bundle description as usual
Choose required preconfigured bundle/partnership type (F4)
Note: not every bundletype is a partnership
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Master Data III: Creating a Partnership
Members of the partnership (commission contracts, existing bundle functionality) Note: no bundles/partnerships allowed!
New bundle functionality (partnerships only):
Read-only data from Customizing (specific for partnership type)
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Master Data III: Creating a Partnership
New bundle functionality (partnerships only):
Individual agreement for partnership, available entries specific for partnership type
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Master Data III: Creating a Partnership
New bundle functionality (partnerships only):
Distribution of valuation in commission case depending on selection criteria
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Master Data III: Creating a Partnership
Split values depend on contract IDs (and may also depend on “lead”)Selection criteria
are defined by customer and are specific for partnership type
Split values may be entered as percentages or ratios. In an exit a validity check may be performed (e.g. if percentages add up to 100%)
©SAP AG 2005
Partnership: ScopePartnership: Master DataPartnership: Commission CasePartnership: Customizing & Configuration
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Partnerships in Commission Case I
General:
From the perspective of “ordinary” participants, a partnership in the commission case is treated as just another direct participant
Contract 16 is an ordinary commission contract
Contract 157 represents a PS with group contract PS_GRP003
Owner of contract 16 doesn’t need to care whether owner of contract 157 represents a partnership
Note: If “dedicated contracts” has been switched on, specification of the group contract is not necessary
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Partnerships in Commission Case II
The partnership is resolved during computation of the commission case, that is:
The partnership is derived from the data at the interface (if not supplied)
All members of the partnership are determined
Valuation is computed for the contract provided at the interface (157 in this case)
The part of the valuation assigned to the PS is split among the members of the partnership according to the agreement in the partnership and assigned to the members with entitlement category 6
Entitlement object ID is the direct participant representing the partnership
The members of the partnership compute according to their individual contracts
© SAP AG 2005
Remuneration Within a Partnership
Partnership
+ Case data
+ Comparison with partnership master data
• Contract 157 will get 83.33% of70% of the valuation
• Contract 156 will get 16.66% of70% of the valuation
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Further Functions: Indirect Participants
After resolution of the partnership within the commission case, the group contract and the members are known to the commission case as participant with entitlement category 6 “Partnership”:
Part ContrNo … Role DirShar IndShar … GroupContResp1 157 802 70 60 PS_GRP003
Part PartPos PersResp ContrNo Role DirShare IndShare EntitlCat. EntitleOjId1 1 157 802 70 30 1
… … … … … ... … … …1 6 PS_GRP003 802 6 1
7 156 802 6 18 X 157 802 6 1
To participants with entitlement category 6, indirect participants may bedetermined in the same way as for those with entitlement category 1 (setting of the Partnership Type).
Four different switches are available (settings “on” or “off”):Determination of indirect participants:
1. In organizational hierarchy for group contract2. In organizational hierarchy for (all) member contracts3. By contract relationship for group contract4. By contract relationship for (all) member contracts
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Remuneration of Indirect Participants
Remuneration of indirect participant differs for entitlements originating from entitlement categories 1 (direct participants) and 6 (partnerships):
Entitlement category 1 Entitlement category 6
Dir. Part
Direct Share Indirect Share
40% 55%
Ind. PartRemType XY1RemType XY5RemType AB3
XY1, XY5with 40%weighting
AB3with 55%weighting
RemType XY7
Dir. Part
LOB = LIFE,--- Role = AGT, LEAD
40% 55%
Ind. Part RemType XY1RemType XY5RemType AB3
?
? ?
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Partnership: ScopePartnership: Master DataPartnership: Commission CasePartnership: Customizing & Configuration
© SAP AG 2005
Customizing and Configuration
Creating and configuring a commission application for use with partnerships:Include ICM package CACS42 in your applicationDecide on the setting of switch for dedicated contractsDefine structure of selection tables for partnership and enhance structure:
Structure <APPL>_S_PS_SCCD must contain all customer defined key fields contained in any of the selection tables:
© SAP AG 2005
Customizing and Configuration
Create contract type for group contracts, roles and constellations
Create standard participation agreement and standard contract for group contracts (minimum requirements)
Define partnership types (Customizing activity Maintain Contract Bundle Types)
Create Customizing for general partnership (separation rules, characteristics combinations)
Configure partnership types: Assign separation rules and selection criteria table to partnership typeDefine behavior for determination of indirect participantsAssign tool of logical service to partnership type (“Partnership_Standard” tool is supplied)
© SAP AG 2005
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