How Variables in SAP Commissions Can Generate Flexibility

How Variables in SAP Commissions Can Generate Flexibility 

Variables in SAP Commissions may be the feature users need to make calculations more flexible, creating more ways to use the solution than ever before. There are many reasons why variables should be used and how they can be used to help users get the most out of an SAP Commissions Solution. Read this blog to learn more about the benefits of variables and how to use them. 

Variables

What are Variables In SAP Commissions?

As defined for use in SAP Commissions, variables are placeholders in the calculation. They are used inside Rules, Formulas, or other objects to allow those objects to be used more generally. Available variable types include Fixed Values, Lookup Tables, Rate Tables, and Territories. The effective data on variables allows for the ability to modify certain elements for items such as year over year plan changes, or mid-year updates. 

Why use variables in SAP Commissions?

Variables are used to make the calculation more flexible.  Instead of creating a rule for each possible calculation at different rates, a variable can be used one time and the value can be changed at different levels of the calculation. Variables also allow for rules to be maintained as time progresses, and to update various compensation elements to keep up to date with organizational goals.

For Example, Here’s How Variables Work

For example, when the requirement is to multiply Revenue, by a Rate that varies for each Sales Role, you can build multiple Rules, one for each Rate. But that would take time, energy, and a lot of updating.

Or, you can build a Rule that multiplies Revenue by a Variable. Then you can use that rule everywhere you need to multiply Revenue by any Rate (%). This means a more efficient build, fewer Rules, and fewer updates to Rules when Rates change.

Variable Assignments

Here’s how they work

When a Value is assigned to a Variable at the Plan level, every Position on that Plan will use the same Value, unless a different Value is assigned at Title or Position Level.

When a Value is assigned at the Title level, every Position with that Title will use the same Value in the calculation, unless a different Value is assigned at the Position Level.  This overrides any Plan assignment.

When a Value is assigned at the Position level, only that Position will use that Value in the calculation. This overrides both Plan and Title assignments. All variables have an effective date which ensures calculations can be updated while maintaining historical versions. 

For Example, Here’s How Variable Assignments Work

If you have two Sales Reps, Bob and Amy. They can use the same Plan and the same Rules, but you can assign Bob a 2% Rate and Amy a 5% Rate.

Variables and Variable Assignments in SAP Commissions are Important to Your SAP Commissions Solution

By using Variables and Variable Assignments in SAP Commissions, users can save time, decrease the number of rules, increase efficiency, and limit the amount of updates needed to be made with time. Variables are useful when building a calculation so that fewer rules can be used for more purposes. Furthermore, Variables can have different values (objects) assigned at different levels of the calculation

Variables make SAP Commissions flexible for exception handling and year-over-year plan changes. 

Variables can make a positive impact on your SAP Commissions solution and should be utilized. If you have any questions about Variables, Variable Assignments, or SAP Commissions in general, please reach out to our expert team at canidium.com/contact, or click the contact button below.