Calculating Commissions using BRF+
Commission Calculation is a complex processs with various business rules embedded into the process in code form.
In Incentives and Commissions Management ( FS-ICM ) till EHp4 SD Pricing Tool was used to determine commission rate and then apply it to incoming base amount to calculate commission.
With Ehp5, there is an alternative provided for the same in the form of Business Rules Framework +.
With the help of BRF+, now sales managers and compensation plan designers have the freedom to quickly change the rates calculation formulae without having to depend on ABAP coders to write the calculation logic.
How it is realized:
a) Usage of Expresssion of type Decision Tables to arrive at Commission Rates:
We’ve used Decision Tables in almost the same way as Condition Tables ( SD ) were used in commission rate determination. Users at the time of design of Commission Application can select fieldsattributes which they want as a context for their BRF+ application and then they can choose fields from this context to create their own decision tables.
Decision Tables are then linked to agents contract so that they are picked and processed for determination of commission rate.
b) Usage of Expression of Type Formula to design the calculation logic for Commission.
A sample commission calculation formula may look like this:
Commission Amount = Base Amount * Commission Rate / 100.
But, nothing is simple in this world :(, so commission formulae can vary, and at times can become very complex.
Now in normal scenarios using SD, compensation analyst would have to sit with developers and create a formula and link it then to SD calculation procedure, but with BRF+; Compensation analyst have the flexibility to design the formula without any coding using intuitive BRF+ formula buider UI.
As with decision table, this formula is then linked to individual sales agent contract and is invoked during commission calculation.
c) Creation of Portal Workcenter for management of BRF+ objects like Decision Table, Formula etc.
For management of formulae decision tables ICM has provided users with a portal workcenter. Here one can create display change commission formulae or decision tables.
The potential benefit of using BRF+ along with ICM is immense as majority of the commission calculation rules can be easily and quickly realized by business users, the way they want it.