Getting Started with SAP SuccessFactors Incentive Management


After completing this lesson, you will be able to:

  • Name the features and functions of Incentive Management.
  • Describe the incentive compensation process.

Features and Functions of Incentive Management

SAP SuccessFactors Incentive Management is a cloud based, stand-alone sales performance management solution. Using a no-code user interface, your organization’s compensation team can create scalable plans and rules to automate the incentive compensation process from sales order to payment for your sales force.


SAP SuccessFactors Incentive Management was formerly known as SAP Commissions. Some of the elements of this training, including images, videos and simulations, may include references to the legacy name; in these cases, the names can be considered interchangeable.

Incentive Management has two general users. The Administrator is a business user that can create and manage compensation plans and rules; update payee quotas, territories and rates; run compensation calculations and review results; design end-user dashboards; distribute and track plan documents; and model future incentive payouts.

A Payee is the recipient of the payments generated by SAP SuccessFactors Incentive Managements. A typical payee may be a sales representative, account executive, sales manager, or any other entity who is compensated based on performance. A Payee can view dashboards, accept distributed compensation plans, and raise disputes and inquiries.

Administrators can:

  • Create and manage compensation plans and rules
  • Update payee quotas, territories, and rates
  • Run compensation calculations and review results
  • Design end-user dashboards to be displayed to sales representatives and sales managers
  • Send out plan documents and design corresponding approval process
  • Model changes in the incentives payouts for a given change in a compensation plan

Payees can:

  • View Dashboards
  • Accept compensation plans
  • Raise compensation disputes

The Incentive Compensation Process

To describe the incentive compensation process, let’s start with what compensation means. Compensation is defined as the total amount of monetary payment provided to an employee, for work performed. Compensation Plans calculate and compensate each payee based on their performance measurements. This is called Variable Incentive Compensation. The components of compensation are detailed in a compensation plan. This plan contains a set of rules that specify how to compensate each payee.

Bikes in Motion is a fictional company that sells different type of bikes, cycling apparel and gear, and replacement parts. It sells to sporting goods stores, general retailers, and specialty shops globally through a team of Sales Representatives. Each Sales Rep uses a Customer Relationship Manager (CRM) such as SAP Cloud for Customer to enter and track their opportunities. Once an opportunity is won and the sale is final, it moves into Incentive Management and becomes a Transaction.

The Compensation Administrator manages the compensation process in the user interface by managing Compensation Plans, Rules, and other compensation elements to ensure each Sales Rep is compensated accurately for their sales.

As compensation is calculated, the Sales Rep can track their progress by viewing their results in a Dashboard. 

At the end of the compensation period, the payments are sent to a payroll or accounts payable team for processing.

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