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Introduction

What is the Incentives and Paybacks (IP) module?


The IP module is an embedded SAP R/3 add-on that identifies, computes and
settles all types of incentives and paybacks related to Logistics (Sales &
Distribution, Material Management) business processes. The module is designed to
accommodate all possible scenarios that a business is typically challenged with
during its purchases and sales activities.
The following applications are supported by the IP module:
Chargebacks (CB)
Sales Commission and Incentive Compensation (SI)
Billbacks (BB)
Sales Rebates (SR) *formerly known as Customer Rebates (CR)
Purchasing Rebates (PR)
Purpose of the IP Module.
Incentive Compensation is a business approach that companies use to encourage
their bottom line to perform to their best potential. This in turn, assists the
company to enhance their statistics and meet their pre-set goals.
Chargeback and Billback management are business activities that involve
payments from one party to another based on mutual agreements between them.
These processes typically involve persistent negotiation and complicated
settlements between both the parties.
Sales Rebate and Purchase Rebate Plans are fruitful strategies to promote a
company's products and services but they can be highly complex in nature. If not
handled in an appropriate manner, rebate management becomes a cumbersome
activity for the company.
The IP module was designed to facilitate the processing of the above activities in
an efficient and comprehensive manner. It aims towards elimination of
spreadsheets and manual estimation of incentives and paybacks. Thus, the IP
module assists the executive team to streamline their focus on pursuing the
business objectives rather than be occupied with time-consuming and archaic
calculation methods.

Integration
For sound business practices, it is often imperative to extend the typical 'order to
cash' and 'procure to pay' processes in order to accommodate several equally
important functions.
For example, a fundamental sales transaction involves the creation of a sales
order, delivery of goods/services, preparation of customer invoice andreception of
customer payment. However, in practicality this process needs to be extended
to cover additional functions such as rebates, chargebacks and sales incentives.

With the IP Module, the concept of an 'order to cash' process has been extended
to introduce an additional document called the IP (Incentive and Payback)
document. As a result, it is no longer necessary to incorporate the calculations
and additional functions for rebates, chargebacks and sales incentives within the
customer billing document. The customer invoice has limited flexibility in terms of
changing information for chargeback and incentive calculations, especially for
retroactive calculations. Thus, it is beneficial to have a separate IP document that
has all the details of the incentive or payback process displayed in an orderly
manner.

For example, the customer billing document governs the transaction between
the distributor and the customer and the IP Chargeback document governs the
transaction between the distributor and the manufacturer.

Approaches
The IP Module can be processed with two different approaches, Transaction
IP and Composite IP.
Transaction IP
The calculation, accrual and settlement of the incentive or
payback is done on 'per document' basis.
The IP document has its own life-cycle.
IP Processing does not depend on any targets or quotas of
the company.
Composite IP
Individual IP document amounts are aggregated into
matrices as actual performance data and are compared
against targets and quotas for the calculation of incentive
amounts.
IP documents do not get individually accrued or settled.
Accrual and Settlement take place at Participant level.
Transaction IP and Composite IP can co-exist within the same IP Application.

Master Data in the IP Module

The following organization data and master data are reused in the IP Module.
Since the IP module it is embedded in the R/3 system, it is not necessary to
redefine the data.
Organization Data:
Organization structures such as Company Code, Sales Areas and Plant can be
accessed via the menu path,
SPRO
SAP reference IMG
Enterprise Structure.
Customer Master:
Customer Master can be accessed via the menu path,
Logistics
Sales and Distribution
Master Data
Partners
Customer.
Material Master:
Material master can be accessed via the menu path,
Logistics
Material Management
Material Master

Business

Material.

Vendor Master:
Vendor master can be accessed via the menu path,
Logistics
Purchasing
Master data
Vendor.

Prerequisites
Assignment
of roles /IRM/IPBB_ANALYST , /IRM/IPCB_ANALYST, /IRM/IPSI_ANA
LYST, /IRM/IPCR_ANALYST and /IRM/IPPR_ANALYST are necessary to
gain access to the transactions referred to in this guide.
Knowledge of Sales Orders, Deliveries and Billing Documents is required.
Customizing activities have to be carried out using transaction /IRM/IPSPRO

Release Information
All the functionality of the IP Module covered in this documentation pertains to
release versions 40C and 60C.

Chargebacks
In this guide, the Chargeback application of the IP module is explained in detail.

Definition
A Chargeback is an amount claimed by a distributor from a manufacturer or
vendor for the difference between their initial acquisition price and the actual
agreed upon price for products/services sold to a specific end customer or partner.

Purpose
Consumer product manufacturers engage in contracts with distributors to offer
special or discounted pricing to specific end customers or end customer groups
(retailers, operators). This special pricing creates bigger market share, product
recognition and customer loyalty for both the manufacturer and the distributer.
Since distributors do not normally procure special stock or inventory for specific
end customers and because they must provide documented proof to the
manufacturer that they actually sold the product to an end customer that qualified
for the discount, the distributor ends up selling the product at or below their
normal acquisition price and in turn must then file a claim with the manufacturer
to recoup the money for the difference.
The Chargeback application of the IP Module enables distributors to execute their
claim process efficiently and comprehensively.

Implementation Consideration
The Chargeback application of the IP Module is ideal for distributors that engage in
voluminous special pricing contracts with manufacturers and end customers.
The end customers and business partners play an essential role in the companys
growth and profits and in todays competitive times it has become a must for
manufacturers to engage in special pricing contracts to increase sales and remain
competitive in the market place.
The chargeback process can be very manual, time consuming, inaccurate and
costly if handled using archaic and manual approaches. The process must be
managed effectively, efficiently and comprehensively in order to reap absolute
benefits and obtain maximum compensation. If the process is implemented using
archaic and manual approaches, the benefits of the process may be overweighed
by inflexibility and by the labor-intensive nature of these methods.
Implementation of the Chargeback application ensures maximum benefit and
would prove highly advantageous and lucrative for any company managing
chargeback transactions.

Source Documents
The chargeback process initiates only after the distributor sells a product to the
customer at the price below his cost.

This involves creation of a sales order, the outbound delivery of goods and
preparation of a billing document. These constitute the Sales Documents and thus
serve as proof of sale.
During the chargeback process, we must have source documents based on which
we can create the chargeback document. The source documents used in this case
are Sales Orders and Billing documents.

The information which is derived from these source documents is:


General information about the sale (Sales Org., Distr. Channel, Div.,
Company Code etc.).
All parties involved in the sales transaction (Partners).
The product pricing for the distributor (Cost price and Selling price).
Basic Material Information (Quantity, Rate, Currency, Unit).

Partner Roles
Generally, a sale transaction involves several parties namely Sold-to-party, Shipto-party, Bill-to-party and Payer. In addition to this, every item in the sales
transaction has a manufacturer party, which may be same or different for all the
items in the transaction.
During the chargeback process, the partners involved are manufacturers and
distributors. The chargeback documents are created as per manufacturer. Thus,
the number of Chargeback Documents created for a particular sale will be less
than or equal the number of manufacturers involved in the sale.
It is important to understand that a chargeback process will take place with
a manufacturer only if there exists a valid agreement between the parties for at
least one item in the source document. Thus, the chargeback document sent to a

particular manufacturer would only contain those items that belong to the sale as
well as to an agreement between the manufacturer and distributor. If there is no
agreement between the parties, then the question of a chargeback does not arise
at all and thus there is no chargeback document.

Example 1- If there are 3 manufacturers involved in the sale and there were
valid agreements for at least one item for each manufacturer, then we will have 3
chargeback documents. This represents a case where number of chargeback
documents is equal to the number of manufacturers.

Example 2- Consider that there are 3 manufacturers involved in the sale as


shown. CB Document 1 will be sent to Manufacturer 1 for items 1 and 2 as there
were valid agreements for both items. No CB Document is created
for Manufacturer 2 as no agreement is maintained for item 3. CB Document 2 will
be sent to Manufacturer 3 for items 5 and 6 only as there was no agreement for
item 4. This represents a case where number of chargeback documents isless
than the number of manufacturers.

Chargeback Agreements - GUI


Definition
Before the distributor initiates a chargeback process, there must be an agreement
set up with the manufacturer on the chargeback conditions of the items. The
agreement summarizes the pricing conditions of the items and the settlement
parameters. Each agreement can pertain to many customers or just one customer.
Agreements can be national, local or limited to a specific customer location.
Agreements are highly flexible, enabling one or more chargeback pricing factors,
such as % cost support, protect to cost, contract cost, flat dollar amount, or a
combination of the above, to change frequently and be modified retroactively.

Access
The agreements for the Chargeback application can be accessed by following the
path: CB-Agreements and Settlement Chargebacks agreements.
The transaction code is /IRM/IPCBASP.

Structure

The Workbench has a main toolbar, a main menu and is organized into two
sections:

Main Toolbar - Top


o

The

button is used to display and hide the Search and Work list.

The
button is used to minimize the Search and Work list so the
screen is comprised of two sections (Search and Work list on the left
side and the Agreement on the right side).

The
button is used to maximize the Search and Work list so the
screen is comprised of one section (Search and Work list ONLY).

The
button is used to switch between the Work list view and the
Calendar view.
o The Views available in the Calendar view are:
o Agreement Type
o Owner
o Agreement Group
o Campaign
o Status
o My View
o The Periods available in the Calendar view are:
o Yearly
o Quarterly
o Monthly
o Weekly
o Daily

The
button is used to view the agreement review sheet. This is a
standard clean and concise overview screen of the agreement. It lists
all of the header and item master data in one sheet. Each section
can be expanded or collapsed. It also allows for quick links to the
different sections of the document.

The
button is used to switch from display mode to change mode,
and vice versa, to carry out further processing of the agreement.

The
button is used to copy an agreement. The copy feature for
the agreement allows for a reference agreement as the starting point
for a new agreement.
o An agreement can be copied from change or display mode.
o A copy of an agreement can be saved as an agreement, an
agreement with preview first, an agreement request or an
agreement request with preview first.
o An agreement preview allows for changes to be made to
the agreement before it is saved.
o An agreement request allows for a formal review process
before the copy is saved as an agreement.
o The agreement request preview function allows for
changes to be made to the request before it is saved.
o Agreements can copy within agreement types or to a different
agreement type.

o
o

Selection of rules are limited to select rules within a rule sheet


from being copied.
An agreement can be copied into multiple contracts.
o For example, a template contract for a group can be split
into multiple contracts for each of its individual members
with one transaction. Agreements can be split at the
header of the contract or based on any individual rule on
the contract.

The
button is used to delete the agreement.
o Available in change mode only.

The
button is used to terminate an agreement. An agreement
can be terminated as of a certain date. Rules will be automatically
changed to end as of the termination date specified. If a rule is not
currently active, it will be blocked. Once an agreement is terminated,
the agreement status can be either released for continued processing
before the termination date or blocked for no further processing at
all.
o Available in change mode only.

The
button is used to check the rules on the agreement. It will
inform the user what rules are missing required fields.
o To see the errors, the user would have to view them on the
Rules tab itself or by attempting to save the agreement with a
rule error on it.
o Available in create and change mode.

The
button is used to check the overlap rules. This ensures that
multiple agreements do not have the same rules for the same dates.
This can be configured to be a warning or an error. The check can be
called on demand or at save.
o Available in create and change mode.

The

The
button is used to view the agreement hierarchy with access
to each agreement in the hierarchy.

button is used to view the agreement posting summary.

Main Menu - Top


o The Edit > Text menu option is used to add text to the agreement by
searching for text objects.
o Available in change mode only.
o Searching for text objects can be done independent of the
agreement workbench by going to transaction /IRM/GTC.
o For more information, refer to the Guide for Text
Classification IMG document in /IRM/IPSPRO.
o The Edit > Template menu option is used to assign a template to the
agreement.
o This is what enables the agreement to have clauses assigned to
it on the Clauses tab.
o The Edit > Close Out Agreement menu option is used to close
out at the spend type level or close out at the agreement
level after the expected accrual and actual accrual have been
posted.

This means you want to take the difference between the


expected and actual accruals and zero it out. It creates a
claim for the difference; it is an accounting entry. When
you choose to close it out, it will give you a pop-up and
ask you what claim type you want to use. If you close
out at the agreement level, it changes the agreement
status.
o Closeout process requires that claim types are
configured at the agreement type level and a condition
type is assigned for calculation of amounts.
The Edit > Create Agreement Request menu option is used to
create an agreement request from an agreement.
o For example, if a change has been made to an
agreement, the request allows for a formal review
process before the changed agreement is saved as an
agreement.
o If an agreement request is created to make a revision to
an agreement, the request information is captured on
the Revisions tab in the agreement.
o Available in change and display mode.
The Edit > Create Program menu option is used to create a
program (i.e. a template agreement). These agreements, or
programs, are then used as the starting point for agreements
given to customers.
o For example, a template is defined for marketing for a
particular product. All agreements related to that
product need to be initiated from that template. This
process was managed by creating a unique agreement
type and controlling it through authorizations. To
develop tighter controls, the program agreement was
created.
o In configuration for the agreement, there is a flag
marked "program" that needs to be checked to use this
functionality.
o Programs behave as agreements, but are managed in
different workbenches and are not taken into account
during pricing.
o Available in change and display mode.
The Goto > Notification menu option is used to generate the
agreement in an embedded word document.
o Available in change and display mode.
o

Search and Work list - Left Side


In this section, the agreement can be searched using multiple criteria.
o

The
button is used for a new search of agreements. The results
from this search will be displayed after clearing all the previous
search results. Multiple agreements can be searched; however,
information relevant only to one can be displayed at a time.

The
button is used to conduct a search that will not clear results
from a previous search. The new agreements found will append to
the current list of agreements.

The
button is used to illustrate the agreement color legend for
each agreement type and the meaning behind each color. For
example,

Available only when there is at least one agreement in the


Search and Work list.

The
button is used to compare agreements.
Two agreements that are in the search and work list can be
compared. The two selected agreements will be displayed side
by side for dual review.
Available only when there is at least two agreements in the
Search and Work list.

The
button is used to mass maintain an agreement.
This functionality allows for mass creation of rules, mass
change of rules and mass change of some Header data.
The Header data that can be changed here are:
Valid From
Valid to
Release Status
Owner Role
Owner
Revision No.
Revision Date
Revision Reason
Auth. Group
Priority
Agreement Grp
Fixed val. date
Add. value days
Completed
Information
Only available in Change mode.

The
button is used to create a Work List. The user can create
their Work lists from the selected documents for quick reference. The
Work List tab displays all the work list documents for the users.

The
list.

button is used to add the document to the users Favorites

Agreement Information - Right Side


o When an agreement is selected from the Search and Work list, the
agreement and all the information relevant to it is displayed on the
right side.

Navigation
The relevant information for the selected agreement is displayed in two sections,
the Header section and the Details section.

The Header section gives fundamental information about the agreement. It


contains the following fields:
Agreement Type specifies the type of agreement being used for the
particular IP Application. There may be one or more kind of agreements
for Chargebacks and the appropriate type is chosen while creating the
agreement.
Agreement specifies the agreement number. This is an internal number
for the company.
Description identifies the description of agreement (e.g. sales deal,
promotion).
Ext.description identifies the customer's own description of the
agreement.
Release Status determines under what scenarios condition records are
retrieved. It underlines the applicability of the agreement.
o If status is set to 'Release for Pricing Simulation' then the condition
records are retrieved only during pricing simulation and are
otherwise blocked.
Reason Code is the reason code to describe the reason for the Release
Status.
Cur. Usr Stat. is a key that informs you of the current status of a user.
o A status can either be activated internally (system status) or
externally (user status) for information and control purposes.
Valid From and Valid To indicates the validity period of the agreement.
Agreement Term illustrates how many days/weeks/months/years are in
the validity period. The Valid From and Valid To dates can drive the
Agreement Term or the Agreement Term can drive the Valid To date.
o Example of the Valid From and Valid To dates driving the Agreement
Term:
o When creating a new agreement and the Valid From is changed
from 01/01/20xx to 04/01/20xx and the Valid to is 12/31/20xx
(same year as the Valid From), this automatically changes the
agreement term from 365 days to 275 days.
o Example of the Agreement Term driving the Valid To date:
o When creating a new agreement and the agreement term is
changed from 365 days to 275 days, this automatically changes
the Valid to date from 12/31/20xx to 10/02/20xx (same year
as the Valid From).
o Can only be manually changed on the initial entry screen when
creating an agreement.
o When mass maintaining an agreement validity period, changing the
Agreement Term manually is not available. It can only be changed
via the automatic update from the Valid From and/or Valid To date
change(s).
Control Number is a free-form text field that is used for informational
purposes only.

For instance, a customer may have their own agreement identifier


that they want on the agreement, so this field provides a place for
such an identifier to be input on it.
Currency is the key for the currency associated with the agreement.
Reference 1 is the agreement reference type when copying an
agreement. The reference type is selected in the Basic Data section in
the Copy Agreement pop-up window.
o If a reference type is not selected, the field will default to
"Reference" on the new agreement.
o Examples of reference types: Annual Renewal and Customer Update
Reference 2 is the agreement number of the agreement that was copied.
o

The agreement number automatically defaults into this field upon


copying an agreement to a new agreement.
Agmt Status: This field reflects the settling activities for the agreement.
The default status is 'Open' which is subsequently set to a value by the
system.
o

The Detail section is commonly displayed in the following tabs:


1. General
2. Rules Overview
3. Rules
4. Funds
5. Organization
6. Terms / Settlement
7. Partners
8. Dates
9. Texts
10. Clauses
11. Confirmations
12. Notes
13. Status
14. Price Book
15. Sales Documents
16. Revisions
17. Territories
18. Actions
19. Additional Information 1
20. Additional Information 2
21. Admin Data
The information displayed under each aforementioned tab is explained in detail
below.
General
The fields within the General tab are primarily used for reporting purposes and do
not directly impact the performance of the agreement itself. The General tab is
divided into four sections with applicable fields:
Source

o
o

Owner Role is used to assign a specific owner role or responsible


party role i.e. "coordinator" or "department supervisor" to the
agreement itself.
o Owner role options are defined in configuration and selected at
the time of agreement creation.
Owner is the used to assign a specific owner based on the owner
role selected. Owners are set up in master data and pulled into the
agreement at the time of creation.
Priority is used to assign priority levels to the agreement i.e. high,
medium, low priority. This allows for prioritization of one agreement
over another.
o The priority levels are defined in configuration and selected at
the time of agreement creation.
Objective is used to assign specific objectives to an agreement.
The objective explains the purpose of the agreement itself. For
example, an objective could be to "win market share" or "become
sole supplier".
o The objectives are defined in configuration and selected at the
time of agreement creation.
Tactic is the means employed to achieve the "objective" chosen in
the previous field. For example, in order to achieve the objective
"win market share" we have to employ the tactic "offer lowest price".
Fixed val.date is the date on which the terms of payment related to
the sales document become effective. If you enter a date in this
field, you cannot enter a value in the "add.value days" field.
Add.value days is the number of days between the billing date and
the date on which the terms of payment for the sales document
become effective. If you enter a value in this field, you cannot enter
a date in the "Fixed val.date" field.
Agreement Grp is used to assign or link a specific agreement to a
particular, more temporary agreement group. For example, if
marketing employs some sort of Easter Promotion or Mothers Day
Promotion, any agreements created for either promotion would be
assigned to their respective group.
o These groups are defined by a user in an agreement group
workbench and assigned at the time of agreement creation.
Auth. Group dictates the group of individuals authorized to view or
make changes to a specific agreement. These groups are defined in
master data/configuration and selected at time of agreement
creation.
Bundling Code is used in government pricing applications to bundle
existing contracts or agreements together to calculate and determine
best price.
Close Out Rsn is the reason for closing out or inactivating an
agreement i.e. "agreement partner out of business" or "revised
contract exists".
o These reasons are defined in configuration and selected at time
of agreement termination or close out.
Close Out Date is the date an agreement is terminated or closed
out.
Mass Ref. is a field that pulls in reference information that is
manually entered by a user when they make a mass updates or
changes to rules on the agreement(s). If this field is populated with

o
o

data it means that the rules on the agreement were changed or


updated using mass processing functionality.
Revision No. appears on an agreement whenever an agreement
request is created and posted to revise an existing agreement, this
field is populated with the number of the revision to the agreement.
If there have been three agreement requests posted then this field
would be populated with a "3". If there have been no revisions, this
field will be blank.
Revision Date appears on an agreement whenever an agreement
request is created and posted to revise an existing agreement, this
field is populated with the date of the last revision. If there have
been no revisions then this field will be blank.
RevisionReason Whenever an agreement request is created and
posted to revise an existing agreement, a reason for the revision can
be selected. This reason then pulls into the agreement itself i.e.
"participant added or removed".
o These reasons are defined in configuration and selected at the
time of agreement request creation.
Calendar is a field that contains a code that represents a particular
calendar. Calendars specify non-working days. Non-working days
can be civic or religious holidays or any other non-working days
unique to a company. This field is used to identify the calendar that
applies to the object being worked with.
Grouping is used to assign a specific agreement to a particular
agreement group i.e. "government contracts" or "Eastern Region
contracts".
o These groupings are defined in configuration and selected at
the time of agreement creation.
Subgrouping is used to more specifically group an agreement based
on the initial "grouping" assigned. For example, if using grouping
"Government Contracts" you could have sub groupings of "Military",
"Federal" and "State".
o These subgroupings are defined in configuration and selected at
the time of agreement creation.
Origin is used to show how the agreement was received or how it
was entered into the system. For example, was it received via EDI,
fax or web?
o These origins are defined in configuration and selected at the
time of agreement creation.
Renewal Type is used to classify the agreement according to
renewal types i.e. "non-renewable", "annual renewal" or "automatic
renewal".
o These types are defined in configuration and selected at time of
agreement creation.
Renewal Action is used to assign actions that need to be carried
out for a specific agreement with regard to the renewal itself i.e.
"manager approval" or "legal review".
o These actions are defined in configuration and selected at time
of agreement creation.
Renewal Term is used to assign the terms or duration of the
renewed agreement i.e. "60 days" or "26 weeks".
TerminationRsn is used to assign a reason for terminating an
agreement if terminated i.e "customer request", "sales manager
request" or "company out of business".

These reasons are defined in configuration and selected at time


of agreement termination.
Termination Dt is the date the agreement was terminated.
o

Rules Overview
Chargeback Agreements are implemented as Sales Deals using the standard
pricing functionality. The IP Module uses the same Pricing Architecture that is used
for sales orders, billing document and purchasing documents. This implies that
condition types, access sequences and condition records can be reused during the
processing of chargeback documents along with other IP application documents.
The grid within the Rules Overview tab is used to illustrate a summary of all
available Condition Type/Condition Table combinations available for the selected
agreement type. This unique combination is also referred to as a Price Sheet.

Buttons:
o

The
button is used to display the field names and values for the
selected record.

The
order.

button is used to sort a column in the grid in ascending

The
order.

button is used to sort a column in the grid in descending

The

button is used to find a term in the grid.

The
button is used to create, change and/or delete column
layouts.
Columns:
o The Application column subdivides the usage of a condition (for
example, pricing) for use in different application areas. The only
application areas available are either Sales/Distribution (V) or
Purchasing (M).
o The Record Count column shows a how many records exist for each
Condition Type/Condition Table combination. The record count does
not affect any pricing functions and is for informational purposes
only.
o The Condition Type 1 column contains the condition type text.
For example, Admin Fees.
The condition type is used for different functions:
In pricing, for example, the condition type lets you
differentiate between different kinds of discounts.
In output determination, the condition type lets you
differentiate between different output types such as order
confirmation or delivery note.
In batch determination, the condition type lets you
differentiate between different strategy types.
o The Condition Type 2 column contains the key that uniquely
identifies the condition. For example, ZAD1.
o The Alias column contains a user-friendly description for each
Condition Type/Condition Table combination (i.e. Price Sheet). By
clicking on the Alias, it will link to the Price Sheet on the Rules tab.
o

For example, Admin Fees - Material.


The Condition Table 1 column identifies the database table that
applies to a condition during the reading and writing of data.
For example, Sales Deal/Payer/Material.
The Condition Table 2 column contains the key that uniquely
identifies the condition.
For example, A910.
The Assignment column contains the user-defined flexible grouping
of condition types. The assignment grouping does not affect any
pricing functions and is for informational purposes only.
For example, Incentive.
The Category column contains the user-defined flexible grouping of
condition types. The price category grouping does not affect any
pricing functions and is for informational purposes only.
For example, Rebate.
The Group column contains the user-defined flexible grouping of
condition types. The price groups' grouping does not affect any
pricing functions and is for informational purposes only.
For example, Performance Based.
The Spend Type column contains an attribute of a condition type
that designates the purpose of the condition type.
For example, Promotional discounts, freight allowances,
marketing events, etc.

**If the agreement type is set up in configuration to use the New Pricing Engine,
the Rules tab will be visible and located to the right of this tab. If it is not, please
refer to the Other Pricing section in this document.**

Rules
The grid within the Rules tab is used to illustrate a summary price sheet of all
active price sheets in the agreement or each individual price sheet can be
displayed via the Current Sheet dropdown box. All active sheets in the agreement
will have a set of parenthesis next to the Price Sheet name with the total number
of condition records in it.
This tab will only be present if the agreement type is set up in
configuration to use the New Pricing Engine.
Buttons:
o

The
button is used to measure the performance of the
agreement without customization. Measures can also trigger specific
approval statuses, such as total profit on the agreement (<$1000
goes to manager)
o This button is only available on the Summary Price Sheet if
there was a Measure(s) set up for the IP Agreement Type in
configuration.

The
button is considered to be a dynamic button because
it allows the user to drill into the Membership List. The list can be
displayed in a Hierarchy view or in a Grid view. This button is only
available for Price Sheets that have a Trade Organization as part of
the record.
o A Membership Group is a group of end customers that have
been grouped together in order to get special pricing.

Membership groups can go by many names such as trade


organizations, buying groups, and group purchasing
organizations (GPO).
o The Membership List summarizes the end partners that are in
the group.
o Members can be customers, vendors, or business partners.
Membership can also be tiered or hierarchy driven.
Detailed information for each price record can be drilled into by
clicking on the
button. Once in the price record detail screen,
the user can create, change and display scales, text and validity
periods.
Scales: This tab shows scales related to this condition record.
Key: This tab shows the key for this particular condition record.
The user can also view the key entries for the record via
the Key tab.
Validity periods: This tab shows existing condition records for
the row selected along with their respective validity periods,
rates and deletion indicators.
The functionality of the validity periods tab is unique to
Vistex. It enables the user to see changes to validity
periods for the displayed record.

Always click on Check and Complete button


to check the validity
of the condition record before saving. If for this particular
combination, the flag Date Check is set in the Condition Type Table
Enhancement table, then overlapping validity periods of condition
records for that combination is not permitted.

The current price sheet can be refreshed by clicking the


button
on the sheet itself.
If there is the need to refresh all of the price sheets that are open,

us the
o

button in the application toolbar.

The
button is used to add one line, five lines and/or ten lines
to the record.
o For example, if three lines need to be added, it can be done
three different ways:

They can be added by clicking on the


selecting

button and

from the dropdown three times

-OR

They can be added by clicking on the


selecting

button, then

from the dropdown, then highlighting two lines,

then clicking on the


from the dropdown.

button and then selecting

-OR

They can be added by clicking on the


button, then
selecting
from the dropdown, then highlighting seven lines,

then clicking on the


the dropdown.

button and then selecting

from

The
button can be used to "Undo Deletion" of a record. This is
only used when in SPRO (SPRO Sales and Distribution Basic
Functions Pricing Pricing Control Define Condition
Types Maintain Condition Types) and the "delete fr.DB" is set to "Do
Not Delete".
o By doing this, when a record is deleted it will set a deletion flag
on the record. Then, in change mode, if the user selects "Undo
Deletion" it will take the deletion flag off of the record.

The
button is for adding multiple lines with the ease of
selecting the key fields.
o For example, Condition Type PR00 (Price) and Condition Table
A005 (Customer-Material) would have the option to add lines
by selecting multiple materials, customers, distribution
channels and/or sales organizations.

The
button is used to copy the selected price records.
If none of the direct input field check boxes are selected, it will
copy the values in those fields as they are on the original price
record.
If one, some, or all of the direct input fields are selected, and
different values are entered, it will copy all original values in the
fields where the values were not changed and it will override
the values that have been selected to be overridden.

The
button is used to import price records from excel.
o Start Row is where the user specifies the first row that
contains the data in the selected file to import.
o File Path contains the path to the file to be imported. The
user can search for the file path by clicking on the Search
o
o

Help
button.
Field Position is where the user specifies the column that
contains the field data in the selected file to import.
Field_Value contains designated default values.

The
button is used to search and replace the selected values
within the current price sheet.

The
button can be used to mass create rates for the selected
price records.
o Valid From contains the date that the rate for the selected
price record will start.
o Valid To contains the date that the rate for the selected price
record will end.
o Rounding Rule contains the rule that determines how the
system rounds off condition values during pricing. The last digit
will be rounded.
o For example, in rounding rule 'A', values are always
rounded up: 10.459 10.46 DEM
o Rounding Formula contains specified formulas to direct the
rounding routine.

o
o

New is a checkbox signifying if a new price record should be


created with the specified rate or if the specified rate should be
applied to the existent price record.
Update Scales is a checkbox signifying if the specified price
record rate change should update the scales or not.
Rate
o Rate Field 1 contains a dropdown to select the manner in
which the rate should be changed. For instance, if
'Increase By' is chosen, the price record will be increased
by the number in Rate Field 2 in the proper measure in
Rate Field 3.
o Rate Field 2 contains the number that the price record
should be changed by.
o Rate Field 3 contains the measure in which the rate should
be changed. For instance, if '%' is chosen, it will change
the price record by using a % of the number specified.
o Example: Original Price Record Rate(s) = 15.00 USD.
Using the Set Value functionality, increase (rate field 1)
the rate by 5.00 (rate field 2) units (rate field 3) would
change my price record rate(s) to 20.00 USD.
o

The
button is used to carry through the rate
calculation to the selected price record(s).

The
hyperlink is used to
dynamically create rules using the Rule Builder.

The
button can be used when there are formula profiles that
exist for the current price sheet.
o Formula pricing is pricing values derived from a defined
formula.
o Formulas are specific to price sheets. User fields or values
directly within the price sheet, such as rate, can be calculated.

The
button is used to indicate the condition records that comply
with the pricing policies assigned to the Condition Type/Condition
Table combination in the Condition Type Table Enhancement table.
o This button is only available when there is an applicable Price
Sheet that has underlying pricing policies to check whether or
not the pricing records are in compliance or in violation.

The
o

button can be used to recall the most recent log.


It is a prerequisite for the
button to be clicked in order for
the most recent log to be visible using this button.

The
button can be used to highlight lines based the selected
filter and the search criteria that was input. This button can also be
used to reset the highlighting.

The
button can be used to view the cumulated values from sales
orders and from billing for the selected record.

The
button can be used to display the change history for the
selected condition records.

The
button is for Price Simulation purposes that will create a
Price Book (catalog). This is used to simulate prices/discounts for the
chosen materials for a particular customer. A Price Book can be used
by customers to see prices of materials before they place an order.
o Price Simulation is only available if Vistex Foundation Data has
been licensed.
o Process:
o Select the rows of the materials whose prices need to be
o
o
o
o
o
o
o
o
o

simulated and click on


.
In the pop up, enter all the information using the drop
down menus.
The Price Book Type is maintained in the Basic Settings.
Input an External Description.
The Sold-to Party is the customer for whom you are
carrying out this price simulation.
The Material field at the bottom is filled with the materials
selected by you.
Click on the Continue button
.
Select the Sales Area for the Customer and then click on
the Choose button
.
This will navigate you to the Price Book Workbench.
To see Price simulation of each material, click on the Price
Book Item link in the middle grid. Then for that material,
you can see the Details, Conditions, Partners and Notes
tab.
In the Conditions tab, value of a condition Type can be
modified before saving this simulation and sending it to a
customer.
Click on

to save this simulation as a Price Book.

The
button is to change the view of the selected records from
horizontal column layout to vertical column layout.

The
order.

button is used to sort the selected column in ascending

The
order.

button is used to sort the selected column in descending

The

button is used to find specified terms within the price sheet.

The

The
button is used to either sum up a total, maximum and/or
minimum.
o The system will restrict this operation to certain columns. For
instance, the Per column can be totaled using the Total option
from the dropdown.

The

button is used to set and delete filters.

button is used to print the price sheet(s).

The
button is used to generate a Print Preview of the current
price sheet and/or a Crystal Reports preview of the current price
sheet.

The

button allows the user to export the price sheet.

The

button is used to manage the column layout.

Funds
The sections, fields and buttons in this tab are related to and used for funds
management. Funds management is the process of tracking earmarked, budgeted
or prepaid funds for the overall payout of a specific agreement or across multiple
agreements. If funds management is being used then the following fields would
be populated accordingly. These fields will be blank if funds management is not
being utilized. Funds Management related topics are working only if Funds
Management is set to active. For more information on funds management please
see Funds Management.
The funds tab is structured and divided into 3 separate sections with applicable
fields and buttons: The "main section", "territories", and "funds for territory".
Main
Buttons:
o

The
button launches a user to a search screen to search for
and display all funds reservations documents.

The
button launches a user to the actual document
referenced in the Actual Document field of a line item. The line item
must be highlighted first and then this button is pressed.

The
button is used to display the field names and values for the
selected agreement request.

The
order.

button is used to sort a column in the grid in ascending

The
order.

button is used to sort a column in the grid in descending

The

button is used to find a term in the grid.

The

The
button is used to either sum up a total, maximum and/or
minimum. The system will restrict this operation to certain columns.
o

button is used to filter on column criteria that is set.

The

button is used to do a sub-total of a total.

The
button is used to export the revisions into any of the
following formats:
o Spreadsheet
o Word processing
o Local File
o Send

o
o
o
o
o
o

Office
ABC Analys.
Crystal Report Designer
Crystal Reports file export
HTML Download
Copy URL to Clipboard

The
button is used to create, change and/or delete column
layouts.
Columns:
There are situations where a company will set aside funds in anticipation of
money that will need to be paid out based on an agreement. There are
fields within this section used to track both actual and expected funds if
applicable.
o Spend Type and Description refers to the more specific spend
areas associated with the various funds that can be set up and
utilized. For example, if a fund is established for marketing some of
the specific spend types associated with a marketing fund could be
for display fees or for a newspaper advertisement. The types are
defined in configuration and selected at the time of funds
management implementation.
o Actual Document displays the number of the document that
maintains the consumption activities related to the fund.
o Actual Document Item displays the line item as it pertains to the
actual document number listed.
o Total Amount displays the total amount that was set aside or
earmarked for the fund.
o Fund Used displays the total portion of the total fund amount that
has been used to date.
o Open Amount displays the total portion of the total fund amount
that is still available for use.
o Funds Center is typically the cost center associated with the fund.
This allows for funds to be assigned to or budgeted against a
specific functional area within a company i.e. marketing or sales.
o Commitment item is typically the cost element associated with the
fund. It is more of a granular breakdown of the fund. For example,
a fund could be established for a marketing program. A commitment
item tied to that marketing program fund could be for display fees or
for a newspaper advertisement. Commitment items and spend types
are closely related.
o Fund displays the name of the actual fund being utilized.
o Value Adjustment field would have the check box checked if the
line item value was adjusted for some reason after the initial fund
was established or set up.
o

Territories/Territory
A fund can be split across individual territories applicable to an agreement(s)
i.e. the fund as a whole could be split based on geographical locations such as
regions or states. The territories/Territory section pulls in the actual territories
pertaining to the applicable fund if a fund is being tracked by territory.
Funds for Territory
Territories/Territory displays the actual territory or territories the fund
is tied to.

FM Area (Funds Management Area) is an organizational unit which plans,


controls and monitors funds and commitment budgets.
Fund displays the name of the actual fund being utilized.
Funds Center is typically the cost center associated with the fund. This
allows for funds to be assigned to or budgeted against a specific
functional area within a company i.e. marketing or sales.
Commitment item is typically the cost element associated with the fund.
It is more of a granular breakdown of the fund. For example, a fund
could be established for a marketing program. A commitment item tied
to that marketing program fund could be for display fees or for a
newspaper advertisement. Commitment items and spend types are
closely related.

Organization
The fields within the Organization tab is used to illustrate all of the organization
data associated with the agreement.
Sales Org. contains an organizational unit responsible for the sale of
certain products or services. The responsibility of a sales organization
may include legal liability for products and customer claims.
o This is a required field when creating an agreement. A Sales
Organization can be changed via the Organization tab.
Distr. Channel is the way in which products or services reach the
customer. Typical examples of distribution channels are wholesale, retail,
or direct sales. Within a sales organization you can deliver goods to a
given customer through more than one distribution channel. You can
assign a distribution channel to one or more sales organizations.
o This is a required field when creating an agreement. A Distribution
Channel can be changed via the Organization tab.
Division is a way of grouping materials, products, or services. The
system uses divisions to determine the sales areas and the business areas
for a material, product, or service. A product or service is always
assigned to just one division. From the point of view of sales and
distribution, the use of divisions lets you organize your sales structure
around groups of similar products or product lines. This allows the people
in a division who process orders and service customers to specialize
within a manageable area of expertise. For example, if a sales
organization sells food and non-food products through both retail and
wholesale distribution channels, each distribution channel could then be
further split into food and non-food divisions.
o This is a required field when creating an agreement. A Division can
be changed via the Organization tab.
Sales Office is a physical location (for example, a branch office) that has
responsibility for the sale of certain products or services within a given
geographical area.
o This is an optional field when creating an agreement. It can be input
at the time of creation or via the Organization tab for a particular
agreement.
Sales Group is a group of sales people who are responsible for
processing sales of certain products or services. By using sales groups
you can designate different areas of responsibility within a sales office.
When you generate sales statistics, you can use the sales group as one of
the selection criteria. For example, if sales office personnel service both
retail and wholesale markets, you can assign a sales group to each
market.

This is an optional field when creating an agreement. It can be input


at the time of creation or via the Organization tab for a particular
agreement.

Terms / Settlement
The Terms / Settlement tab is used to contains the payment/terms, settlement
parameters and individual settlement information on the agreement.
*See also Customer Settlement Parameters, Vendor Settlement
Parameters and Settlement Calender Maintenance.

Payment / Terms:
o Payment Method determines how payments are to be made, e.g.
by check, bank transfer or bill of exchange.
o Payment methods are entered in the master records of
customers and vendors in order to specify how payments are
made. If an open item is to be paid using a specific payment
method, enter it in the open item. The terms which have been
defined for the payment method must be satisfied for the
payment.
o Payment Terms is the key for defining payment terms composed of
cash discount percentages and payment periods.
o For example, 20 days 2%, 30 days net
o Exch. Rate Type is the key representing a type of exchange rate in
the system.
o The exchange rate type can be used to define a buying rate,
selling rate, or average rate for translating foreign currency
amounts. The average rate can be used for the currency
translation, and the bank buying and selling rates for valuation
of foreign currency amounts.
o Exchange Rate is used by the system for the translation of amounts
into another currency.
o Incoterms are commonly-used trading terms that comply with the
standards established by the International Chamber of Commerce
(ICC).
o Incoterms specify certain internationally recognized procedures
that the shipper and the receiving party must follow for the
shipping transaction to be successfully completed.
o For example, if goods are shipped through a port of departure,
the appropriate Incoterm might be: FOB ("Free On Board"). You
can provide further details (for example, the name of the port)
in the secondary Incoterm field: FOB Boston, for example.
o Incoterms 2 contains additional information for the primary
Incoterm.
o For example, if the primary Incoterm is, for example, FOB
("Free on Board"), then the second field provides details of the
port from which the delivery leaves (for example, "FOB
Boston").
o Conversion Date is the date that the currency was converted into
another currency.

Parameters:

o
o

Settlement Method: This field specifies whether the IP document


will be parked for review or directly settled. There are two types of
settlement methods that can be used:
Park i.e. Settlement takes place after review.
Settle without Parking i.e. Settlement takes place directly.
Usually in chargeback scenarios parking is not involved.
Settlement Type: This field specifies how often the settlement
takes place. There are two options to define the type of settlement.
o Daily i.e. Settlement is done on a daily basis
o Settlement Calendar i.e. Settlement is done periodically on
scheduled dates. Click the
button in the top menu bar to
see the scheduled dates for a particular settlement calendar.
o E.g. Settlement can be done at the end of each month
Stlmt Calendar: This field is used only if the option Settlement
Calendar is chosen for the field Settlement Type. It specifies an ID
that represents the combination of settlement dates chosen for the
customer.
o E.g. ID 01 represents settlement at month end.
o See also
Settlement Amount: This field also determines when the
settlement is carried out. While processing settlement, if for this
customer the settlement amount is reached before the scheduled
settlement date then the system settles the chargeback amount.
Thus, settlement takes places either if the settlement amount is
reached or the settlement date is reached, depending on which
occurs first. Also, if the settlement amount is maintained then it
means that individual settlement takes place.
Stlmt Par.Role is the corresponding partner role for the partner
that is associated with the settlement parameters.
Stmt Partner is the corresponding partner number for the partner
that is associated with the settlement parameters.

For all the above settlement parameters, if they are maintained in the
agreement then they will always override the parameters at the vendor
level or customer level. If the parameter is not maintained in the
agreement, then the vendor or customer level parameter will be
considered.

Partners

Individual Settlement:
o Individual Settlement: If this option is checked it means that this
customer has requested Individual Settlement.
o Correspondence- This specifies the type of correspondence used
for communication with the distributor.
o The Corresponding Customer specifies the customer number that
is credited when settlement occurs. This party can be the customer
itself, a special department or an outsourced company.
o The Corresponding Vendor specifies the vendor number that is
credited when settlement is carried out. This party can be the
distributor itself, a special department or an outsourced company.

The Partners tab is used to contain all partners associated with the agreement.
Partners can be derived based on agreement rules (for example, customer and
material). The partner search will be defined using the condition search logic and
assigned to the agreement type. The partners that are found will be populated in
the partner tab on the agreement. This can be used for determining
management/ownership of the agreement as well as for authorization and
workflow control.
The Display Range dropdown allows the user to display only certain
types of partners.
o For example, if the Partner tab has 10 sales employees on it, a soldto and a ship-to, the user can choose to display 'All employees' and it
will filter out the sold-to and ship-to in the display.
Buttons:
o

The
button is used to display the field names and values for the
selected partner.

The
button is used to add a row on the Partners tab.
o Available in create and change mode.

The
button is used to delete a row on the Partners tab.
o Available in create and change mode.

The

button is used to select all of the partner records on the tab.

The
tab.

button is used to deselect all selected partner records on the

The
button is used to propose alternative partners, if set up, for
the selected partner.

The
button is used to display the master data record for the
selected partner.
o For example, if the partner selected is a Sales Employee, by
clicking this button it will navigate the user transaction PAL2.

The
button displays the partner determination log for the
selected partner.
Columns:
o Partn.funct. contains the partner function for the agreement.
Example: Sold-to Party, Sales Employee, Trade Organization,
etc.
o Partner contains the partner number for the partner function that
was selected.
o Name contains the name description for the selected partner. The
value is defaulted into this field when the partner has been selected.
o Street, Postal Code and City contains the location information for
the selected partner. The value is defaulted into this field when the
partner has been selected.
o Partner definitn contains the Customer description of partner
(plant, storage location).
o

Dates
The fields within the Dates tab is used to illustrate all of the date type information
associated with the agreement. Date Types are assigned to Agreement Types in

configuration, which pulls in date information into an agreement based on this


customization.
Buttons:
o

The
button is used to delete a row on the Dates tab.
o Available in create and change mode.

The
button is used to display the field names and values for the
selected Date Type.
Columns:
o Date Type specifies various date types that can be tracked with
regard to the agreement processing transactions. For example, a
date type for r;renewal notification can be maintained in order to
track and report on the turnaround times associated with renewing
the agreement.
o Plan Stdt specifies the planned start date value for a specific date
type.
o Plan Enddt specifies the planned end date value for a specific date
type.
o Plan Dur specifies the planned duration value. This value is
defaulted based on the planned start and end date.
o Act Stdt contains the actual start date value for a specific date type.
o Act Enddt contains the actual end date value for a specific date
type.
o Act Dur contains the actual duration value. This value is defaulted
based on the actual start and end date.
o Unit specifies the measure of time being used in the date
calculations i.e. day, hours, weeks, etc.
o Changed By defaults to the ID of the user who created or last
changed the various dates for the Date Type.
o Set On defaults to the date of when the various planned and actual
dates for the Date Type were created or changed.
o Set Time defaults to the time when the various planned and actual
dates for the Date Type were created or changed.
o Cal. Id is calendar ID which represents a combination of dates
chosen for a particular event. If a calendar ID is assigned to a date
type in the agreement it would default the value into this field. This
assignment would take place in configuration.
o

Texts
The Text tab enables the user to add notes and/or comments on an agreement.
Text Types are the Text ID descriptions. It defines the various types of
texts related to a text object.
o A Text Determination Procedure must be assigned to an Agreement
Type in order for Text Types to appear on the Text tab. This is done
via Setup Text Processing for Agreements in configuration.
Buttons:
o

The
type.

button is used to cut selected text from a particular text

The
type.

button is used to copy selected text from a particular text

The
button is used to paste cut or copied text into a particular
text type.

The

button is used to undo the user's last step.

The

button is used to restore the user's last step.

The

button is used to find and/or replace text.

The
button is used to find the next specified term/text from the
previous find/replace; it will not clear results from a previous search.

The
button is used to import a text file into the selected text
type.
Only file type .txt is compatible to upload.

The
button is used to export and save the text type in plain text
format.
o It will export as a .txt file type.

The
button is used to create the text on the Text tab directly.
Once text has been entered for a particular text type, this button
must be clicked after text has been input; otherwise the text will not
be retained.

The
button is used to create and maintain text via standard SAP
text editor.

The

button is used to delete text for the selected text type.

The

button is used to toggle to the first text type.

The

button is used to toggle to the previous text type.

The

button is used to toggle to the next text type.

The

button is used to toggle to the last text type.

The
button is used to call the text determination analysis.
This analysis will only occur if the proper configuration is in
place for the text determination procedure and access
sequence.
The Language Key dropdown designates the language in which the
user will:
Enter texts
Display texts
Print documents

Clauses
The Clauses tab contains clauses that are assigned to an agreement via a
template (
). After a template has been assigned to an agreement,
clauses can be added or deleted to the clause structure as necessary. Templates
can be added to agreements during agreement creation and change. Default
template types can be assigned to the agreement type in customizing. Dynamic
displays are available for output based on the template structure. Rules can also

be added as a clause to dynamically display the active rules for the specified rule
sheet.

Buttons:
o

The
button is used to add a clause on the Clauses tab.
o Available in create and change mode after a template has been
assigned to the agreement.

The
button is used to delete a clause on the Clauses tab.
o If the clause originated in the template, then the clause will be
marked as deleted; it will still be visible in the structure and will
be flagged with a deletion indicator flag.
o If the clause originated in the agreement, then the clause will
be entirely deleted from the structure.
o Available in create and change mode after a template has been
assigned to the agreement.

The
button is used to undo a previously deleted clause by
selecting a deleted clause and clicking on this button.
o This will only apply to those deleted clauses that originated on
the template.

The
button is used to create a new version of the clause
structure. A copy of the existing clause structure will be made and
changes can be done to it for version control. This allows the
originally sent structure to be kept as changes are made for
comparison purposes.
o Available in create and change mode after a template has been
assigned to the agreement.

The
button is used to toggle between the versions.
o Version 000 is the copied from the template; it is the initial
version. As new versions are created, the system will
automatically assign the version number accordingly. Also,
whichever version the user is displaying on the agreement
when the user chooses to create a new version, that version
should be the source version.
o Available after a template has been assigned to the agreement.

The
button is used to display version information for the
displayed version.
o Displayed information includes: version number, description,
created by, created on, time, changed by, changed on and time
of change.
o Available after a template has been assigned to the agreement.

The
button is used to illustrate the clauses color legend and the
meaning behind each color. For example,

As mentioned previously, if the clause originated in the


template (i.e. a blue colored line), then the clause will be

The
button is used to dynamically create a Microsoft Office Word
document of the clause structure.
o Available after a template has been assigned to the agreement.

The
button is used to dynamically view the clause structure in
HTML format.
o Available after a template has been assigned to the agreement.

The
button is used to search for clauses by classification. If a
clause has been assigned to an attribute (i.e. characteristic), then
that clause name would be the characteristic value when using this
search functionality. If there is a clause with those values assigned
to that particular attribute, then the search results would appear in
the bottom pane. From here, the clause with the attribute(s) can be
manually added to the clause structure.
o Please keep in mind that attribute checks are at the template
level and not at the agreement level.
o Available after a template has been assigned to the agreement.

The
button is used to display the field names and values for the
selected partner.

The

The

The
button is used to either sum up a total, maximum and/or
minimum. The system will restrict this operation to certain columns.
o

button is used to find text.


button is used to filter on column criteria that is set.

The

button is used to do a sub-total of a total.

The
button is used to export the revisions into any of the
following formats:
o Spreadsheet
o Word processing
o Local File
o Send
o Office
o ABC Analys.
o Crystal Report Designer
o Crystal Reports file export
o HTML Download
o Copy URL to Clipboard

The
button is used to create, change and/or delete column
layouts.
Columns:
o Clause ID contains the number that was automatically assigned to
the clause when it was brought into the template structure. This
remains a fixed number.
o

marked as deleted (i.e. it will be change from a blue colored


line to a red colored line); it will still remain visible in the
structure.
Available after a template has been assigned to the agreement.

o
o

Clause Level contains the number that represents the order in


which the clauses will appear. There can be clauses at the same
level if clause in the structure was replaced with another clause
and/or if there are alternate for clauses. Also, the level may be
xx.1, xx.2 etc. if these clauses were assigned to a higher level
clause.
For example,
Clause Name

Higher Level Clause


Name

Clause Level

Notice

------

Notice to
Customer

Notice

1.1

Notice to Seller

Notice

1.2

Navigate to Clse Workbench contains a link to display each clause


in the Clause Workbench. This is done by clicking on the
button.
Higher Level Clause ID contains the a Clause ID if a higher level
clause has been assigned to a clause.
There are certain Clause Category Checks in place to prevent:
A clause being assigned as a high level clause for a
section.
A sub-clause being assigned as a high level clause for a
section or clause.
A sub-clause being added to a clause structure unless it
has a higher level clause assigned to it.
Higher Level Clause contains the name of the Higher Level Clause
ID. This field is auto-populated based on when the Higher Level
Clause ID has been assigned to a clause.
Print Override is used to take precedence over the section IDs
when dynamically creating the Microsoft Word document and/or the
HTML view.
Section IDs will only appear if the 'Propose Section IDs'
checkbox is selected and if the clause type is meant to show
section IDs.
Alternate For 1 contains the an alternate clause number for
another clause. The Alternate For's are assigned on the template
only; they will always be display only in the clause structure on the
agreement.
o For example, a contract may have two different term options,
one for six months and one for twelve months. By setting them
up as Alternate For's for one another, only one should be
chosen. Please note that the alternate for number only gets
placed in one of the two alternate for number fields (see
below).
Clause Name

Alternate For (Clause


Name)

Clause Level

Term of Contract - 6
months

Term of Contract - 12
months

Term of Contract - 12
months

------

Alternate For 2 contains the an alternate clause number


description. The Alternate For's are assigned on the template only;

o
o
o
o

they will always be display only in the clause structure on the


agreement.
Fast Replace is used for red-lining clauses on the agreement. It
allows the user to copy the Fast Replace clause (that was pulled in
from a template) and make changes to it. Upon save, it creates a
new clause and color codes the NEW line to green, numbers the NEW
clause as the same clause level, and inputs the NEW clause number
and description on the old clause that was replaced.
There is configuration needed on the agreement type that allow
the fast replace clause types to appear in the Fast Replace popup window. This configuration is done in the Maintain
Agreement Types for Chargebacks / 2 configuration step.
Replace With 1 is either auto-populated in the instance where Fast
Replace was used or it allows the user to manually replace a
particular clause with a manually added clause on the agreement.
Replace With 2 is auto-populated when a Fast Replace clause is
created or a clause was manually replaced using the Replace With 1
directly.
Inclusion is set-up on each clause type in the template type
configuration. The purpose of the inclusion is for when the template
is being created to inform the user what clause types are required
versus optional. If a clause type has a required inclusion setting,
then the user will be unable to save the template without the
required clause type. The inclusions are:
'N' = Negotiable
'P' = Preferred
'R' = Required
' ' = Optional
Clause Category is set-up in clause type configuration. The
available clause categories are:
'CL' = Clause
'SC' = Subclause
'SE' = Section
'TL' = Title
Status contains a key that informs the user of the current status of
the clause.
Clause Origin informs the user if the clause originated in the
template or on the agreement.
Description contains the clause type.
Delete Indicator is a deletion flag that is auto-populated when a
template-originating clause has been deleted. A clause marked with
a deletion indicator flag will also be a red colored line.

Confirmations
The Confirmations tab is used to capture the authorizations/sign-offs (i.e.
confirmations) by each respective partner on the agreement when the
configuration is set-up to do so. With that being said, every partner on the
Partner tab would appear on the Confirmations tab.
Columns:
o Partn.funct. contains the partner function for the agreement.
Example: Sold-to Party, Sales Employee, Trade Organization,
etc.

o
o
o
o
o
o

This value pulls in from the Partner tab.


Partner contains the partner number for the partner function that
was selected.
o This value pulls in from the Partner tab.
Name contains the name description for the selected partner. The
value is defaulted into this field when the partner has been selected.
o This value pulls in from the Partner tab.
Act.Receipt Dt contains the confirmation actual receipt date.
Sent Date contains the confirmation sent date.
Tgt Rcpt Date contains the confirmation target receipt date.
Reminder Date contains the confirmation reminder date.
Resent Date contains the confirmation resent date.
Comment is a free-form field for comments pertaining to each
partner confirmation.

Notes
The Notes tab contains notes placed on the selected agreement.
Note Type contains the type that has been created and configured for
Business Object /IRM/IPAGR.
Sec Level contains the security level that has been created and
configured for the selected Note Type.
o Example: Shared with Team, Shared with Department, None, etc.
Team/Department is where the team/department number should be
entered if the corresponding security levels are chosen.
Buttons:
o

The
button is used to display notes in a popup window. The user
can toggle between the notes by choosing the appropriate Note
Type, Security Level and Team/Department. After inputting the
Team/Department, the user must press Enter on their keyboard.

The

button is used to enter a note into the free-form text box.

The

button is used to change a note.

o
o

The
button is used to delete a note.
Once data is input into the free-form text box, the user can click
the
button and depending on the Security Level selected,
it will update the non-editable text box above.

Status
The Status tab contains fields that indicate the overall approval status of the
agreement itself and buttons to navigate to various areas pertaining to the
approval status process.
Buttons:
o

The
status.

button is used to manually set the desired approval

The
button is used to pull in a user friendly map depiction of
the status review process.

The
button is used to show the approval stages that the
agreement has gone through. It also shows the dates and times
that the approvals as well as who set the status.

The
button is used to show all the status changes that have
taken place on the agreement.

The
button is used to show the allowed business transactions
associated with the status profile i.e. "release agreement","block
agreement", or "released for planning/simulation only".

The
button is used to create or navigate to text pertaining to
the status review process.
Columns:
o Status field shows the phase of the approval that the agreement is
currently in i.e. new, requires approval, management/legal review
and approved. If a status profile is defined for an agreement the
agreement cannot be activated until the agreement is in "approved"
status.
o Inactive checkbox contains a checkmark if the status has been
flagged as inactive.
o Set Date contains the date when the Status was set. The value is
defaulted into this field when each new status is set.
o Set Time contains the time when the Status was set. The value is
defaulted into this field when each new status is set.
o

Price Book
The Price Book tab illustrates all of the Price Books that have been created for a
particular agreement. A Price Book is similar to a catalog given to a customer
that indicates the materials along with the prices and discounts, so that he can
refer to it while placing an order.

To create a Price Book, the user must do one of the following:


1. Simulate the prices from the
button on the Rules tab, then save
the Simulation as a Price Book.
-OR2. Directly create a Price Book via Extras Create Price Book.
To maintain/display the Price Book, you can use the TCode /IRM/GPBM.
This will navigate to the Price Book Workbench.
Price Simulation and Price Books are only available if Vistex Foundation
Data has been licensed.
Buttons:
o

The
button is used to display the field names and values for the
selected price book.

The
order.

button is used to sort a column in the grid in ascending

The
order.

button is used to sort a column in the grid in descending

The

button is used to find a term in the grid.

The

button is used to filter on column criteria that is set.

The
button is used to export the revisions into any of the
following formats:
o Spreadsheet
o Word processing
o Local File
o Send
o Office
o ABC Analys.
o Crystal Report Designer
o Crystal Reports file export
o HTML Download
o Copy URL to Clipboard

The
button is used to create, change and/or delete column
layouts.
Columns:
o Price Book field shows the price book number that is a hot-key to
the Price Book Workbench.
o Price Book Type field shows the type associated with the Price
Book.
o Description is the description of the price book type.
o Created By contains the user ID of the person who created the price
book. The value is defaulted into this field when the price book is
saved.
o Created On contains the date when the price book was created.
The value is defaulted into this field when the price book is saved.
o Time contains the time when the price book was created. The value
is defaulted into this field when the price book is saved.
o Changed By contains the user ID of the person who changed the
price book. The value is defaulted into this field when the price book
is saved.
o Changed On contains the date when the price book was changed.
The value is defaulted into this field when the price book is saved.
o Time of Last Change contains the time when the price book was
changed. The value is defaulted into this field when the price book is
saved.
o

Sales Documents
The Sales Documents tab is used to display all sales documents (contracts, orders
and/or quotes) created directly in the Agreement Workbench.
The creation of Sales documents in the Agreement Workbench are only
available if Vistex Foundation Data has been licensed.
Buttons:
o

The
button is used to display the field names and values for the
selected sales document.

The
order.

button is used to sort a column in the grid in ascending

The
order.

button is used to sort a column in the grid in descending

The

button is used to find a term in the grid.

The

The
button is used to export the revisions into any of the
following formats:
o Spreadsheet
o Word processing
o Local File
o Send
o Office
o ABC Analys.
o Crystal Report Designer
o Crystal Reports file export
o HTML Download
o Copy URL to Clipboard

button is used to filter on column criteria that is set.

The
button is used to create, change and/or delete column
layouts.
Columns:
o Sales document is the number that uniquely identifies the sales
document.
o Sales document type is a classification that distinguishes between
different types of sales document.
o Description is the description of the sales document type.
o Created By contains the user ID of the person who created the
sales document. The value is defaulted into this field when the sales
document is saved.
o Created On contains the date when the sales document was
created. The value is defaulted into this field when the sales
document is saved.
o Time contains the time when the sales document was created. The
value is defaulted into this field when the sales document is saved.
o Changed By contains the user ID of the person who changed the
sales document. The value is defaulted into this field when the sales
document is saved.
o Changed On contains the date when the sales document was
changed. The value is defaulted into this field when the sales
document is saved.
o Time of Last Change contains the time when the sales document
was changed. The value is defaulted into this field when the sales
document is saved.
o

Revisions
The Revisions tab contains agreement request information if a request was
created to make a revision to an agreement. This could be done via the
Agreement Workbench Request button or via the Agreement Request Workbench,
Request to Change Agreement option.

The Revision Type dropdown is a fixed field that are associated with the
status of an agreement request. The following are ways to view the list of
revisions:
o Open
o Shows only the open agreement requests associated with the
agreement.
o Posted
o Shows only the posted agreement requests associated with the
agreement.
o As agreement requests are posted, the agreement can update
revision numbers if configured to do so.
o Rejected
o Shows only the rejected agreement requests associated with
the agreement.
o If the approval status at the item level is marked as rejected, it
will not copy over to the agreement.
o All
o Shows all of the agreement requests associated with the
agreement.
Buttons:
o

The
button is used to display the field names and values for the
selected agreement request.

The
order.

button is used to sort a column in the grid in ascending

The
order.

button is used to sort a column in the grid in descending

The

button is used to find a term in the grid.

The

The
button is used to export the revisions into any of the
following formats:
o Spreadsheet
o Word processing
o Local File
o Send
o Office
o ABC Analys.
o Crystal Report Designer
o Crystal Reports file export
o HTML Download
o Copy URL to Clipboard

The
button is used to create, change and/or delete column
layouts.
Columns:
o Agreement Request field shows the agreement request number
that is a hot-key to the Agreement Request Workbench.
o Agreement Request Type field shows the request type associated
with the agreement request.
o

button is used to filter on column criteria that is set.

o
o

o
o

Description is the description of the agreement request type.


Revision Number is the number assigned to the agreement
request.
o For example, if there are two agreement requests ('A' and 'B')
that have been posted and one agreement request ('C')that is
open. The revision numbers will be:
o 'A' = Revision Number '1'
o 'B' = Revision Number '2'
o 'C' = Revision Number ' '
Once 'C' is posted, it will be revision number '3'.
Revision Date is the date the agreement request was last revised.
Created By contains the user ID of the person who created the
Agreement Request. The value is defaulted into this field when the
Agreement Request is saved.
Created On contains the date when the Agreement Request was
created. The value is defaulted into this field when the Agreement
Request is saved.
Posted By contains the user ID of the person who saved and posted
the agreement request as a revision to the agreement. The value is
defaulted into this field when the Agreement Request is saved and
posted.
Posting Date contains the date when the Agreement Request was
saved and posted. The value is defaulted into this field when the
Agreement Request is saved and posted.
Release Status contains the release status captured on the Header
of the Agreement Request.
o For example, 'Released', 'Blocked', 'Rejected', etc.
Posting Status indicates whether or not the agreement request has
not yet been posted or if it has been posted.

Territories
Territories can be derived on an agreement based on the agreements individual
rules or condition types. In configuration, condition search logic is defined and
assigned to an agreement type. The logic uses information existing within the
agreement rules such as customer and material to find and pull in territory
information pertaining to that customer and/or material. The derived territory
information is then populated in the Territories tab. This information can then be
used for finding appropriate funds or for management/ownership of the
agreement.
Buttons:
o

The
button is used to display the field names and values for the
selected line.

The
order.

button is used to sort a column in the grid in ascending

The
order.

button is used to sort a column in the grid in descending

The

button is used to find a term in the grid.

The

button is used to filter on column criteria that is set.

The
button is used to export the revisions into any of the
following formats:
Spreadsheet
Word processing
Local File
Send
Office
ABC Analys.
Crystal Report Designer
Crystal Reports file export
HTML Download
Copy URL to Clipboard

The
button is used to create, change and/or delete column
layouts.
Columns:
o Territory displays the specific territory derived if a condition search
is used to pull territory information into the agreement.
o Territory Level displays the level of the territory within a hierarchy
if the territory is part of a hierarchy.
o Valid From displays the beginning date of the validity period of the
territory for the agreement specifically. The date is derived based on
the validity period established for the rule or condition type used to
locate the territory through the condition search logic.
o Valid To displays the end date of the validity period of the territory
for the agreement specifically. The date is derived based on the
validity period established for the rule or condition type used to
locate the territory through the condition search logic.
o Parent Territory displays the higher level territory that a territory is
assigned to if it is part of a hierarchy. For example, a sales area
could be divided into regions. You could have an Eastern, Central
and Western Region. Each region could be divided into states.
Therefore, if the territory pulled into the territory field was the state
of CA then the parent territory would be the r;Western Region.
o Territory Level field displays the level of the parent territory within
a hierarchy. In a hierarchy, a territory could potentially be both a
parent and a child. Therefore the level needs to be differentiated.
For example, a sales area could be divided into regions i.e. Eastern,
Central and Western. The Regions could then be divided into states.
The states could then be further divided into cities. This would
make the state of CA a parent territory to the city of Los Angeles and
a child territory to the Western Region.
o

Actions
The Actions tab is used to capture configured actions and how they are meant to
behave. A few examples of actions are:
Printing a document
Sending EDIs
Triggering workflows
Sending SMS notifications
Triggering alerts
Executing specific code indicated by you

For purposes of configuring the Actions engine the transaction is SPPFCADM or


SPPCWIZARD (available only in SAP ECC 6.0).
In addition to configuration, there are some additional business enhancements
that are needed. There are some pre-delivered business enhancements. Once the
alerts have been triggered they sit idly in the system until they are processed. To
process these alerts, transaction SPPFP must be executed with relevant selections
in the background (usually this will be a nightly job). For IP we pre-deliver a
scenario where an alert is triggered for an agreement which is going to expire in
14 days.
Buttons:
o

The

The
button is used to display action details, such as: processing
information (ex. /IRM/IP_AGREEMENT_EXPIRE_ALERT), processing
parameters (ex. CREATE_ALERT) and a log of all messages
generated for the action (ex. Processing CREATE_ALERT Is Started).

The

The
button is used to display a log of all messages generated for
the action. This is the same log captured on the Log tab using the
Action Details button.

The
exists.

The
button is used to display the action definition. (ex.
Agreement is about to expire or has already expired. Please perform
necessary actions.)

The
button is used to display the field names and values for the
selected action.

The
order.

button is used to sort a column in the grid in ascending

The
order.

button is used to sort a column in the grid in descending

The

button is used to view archived documents.

button is used to display the determination log, if one

button is used to filter on column criteria that is set.

The
button is used to create, change and/or delete column
layouts.
Columns (some of the standard columns displayed are as follows):
o Condition contains the description of the parameter condition for
the action. If one exists, click on the
button to display the
condition in the condition editor.
o Action contains the description of the action definition. The action
definition describes the content of an action independently of the
processing type. At the action definition level, it is specified how the
actions are found, which possibilities exist for the processing of
actions and whether they are set up to specific partners.
o For example, "Raise Alert when Agreement is about to Expire."
o

button is used to display new actions to be processed.

o
o

Condition Parameter is used to display the container instance by


clicking on the
button.
o Actions based on conditions, like trigger only 14 days prior to
validity expiring, are essentially rules based and hence need a
container of data for these rules. To pre-fill this container you
need business enhancement /IRM/BADI_IPxxCNTPPF.
Status shows a key to signify if the action has been successfully
processed or if it hasn't been processed.
Processing Parameters displays the container instance for the
processing parameters.
o For example, the container element may be "Category" and the
container value my be "/IRM/IPAG_VALIDITY_EXPIRE".
Action Profile contains the name of the action profile. The action
profile displays the interface between the application and the Post
Processing Framework (PPF). It gives a view of the application object
type that only shows the settings that are of interest to the PPF.
Using the settings provided in the action profile, the conditions are
evaluated, which leads to the scheduling of actions.
o For example, /IRM/IP_AGREEMENT_EXPIRED.
Created By contains the user ID of the person who triggered the
action on the agreement. The value is defaulted into this field when
the agreement is saved.
Created On contains the date when the action was triggered. The
value is defaulted into this field when the agreement is saved.

Additional Information 1 and Additional Information 2


The Additional Information 1 and Additional Information 2 tabs are extra tabs
provided that can have additional fields programmed for them.
Admin Data
The Admin Data tab contains the administration information for the agreement,
such as Creation information and Change information.

Other Pricing

The agreement is a collection of condition records that helps to determine


the final chargeback amount that must be paid to the distributor. To check
the condition records that belong to this agreement, click on the
(pricing) button.

Click on the
button, which gives an overview of the condition
records present in the agreement. It specifies the Condition Type, Key
Combination and the number of records for them. To see the records for a
particular condition type, double click on the line and make selections as
needed.

To see all records that belong to this agreement, click on the


Button.
To view additional data about the record any individual record, check the
box next to the record and click on required buttons above and below the
records.

Customer Settlement Parameters


Definition
Settlement is the stage in the chargeback process in which the FI-Accounts
Receivable or Accounts Payable document is created.
Customer Settlement parameters are those factors that govern the settlement
phase between the vendor and the distributor if settlement is done using Accounts
Receivable. Here the distributor is set up as a customer.
Customer Settlement Parameters can be set up on the settlement tab of the
agreement or in the Customer Settlement Parameters transaction. Note: The
agreement settlement parameters will always take precedence over the
parameters maintained in the Customer Settlement Parameters transaction

Access
The Customer Settlement parameters can be accessed through the SAP
Chargebacks User menu, following the path CB-Agreements and
Settlement Customer Settlement Parameters.
The transaction code is /IRM/IPCBCSP.

Structure
The customer can be searched based on multiple criteria such as Company Code,
Customer number, Customer name, Settlement Method and Settlement Type.
The view is organized into two sections:

Search and Work list - Left Side


o

The
button is used to switch from display mode to change mode,
and vice versa, to either display existing customer settlement
parameters or to create new customer settlement parameters.

The
button is used to search for customers based on multiple
criteria such as Company Code, Customer number, Customer name,
Settlement Method and Settlement Type.

The
button is used to conduct a search within the results of a
previous search.

The

The
button is used to create a Work List. The user can create
their Work lists from the selected documents for quick reference. The
Work List tab displays all the work list documents for the users.
Customer Information - Right Side
o When a customer is selected from the search and work list, the
customer and all relevant information is displayed on the right side in
a grid.
o

button is used to add the document to the worklist.

Navigation
The relevant information for the selected customer is displayed in two sections in
the grid, the Header section and the Details section.
The Header section contains the customer name and company code.
The Details section contains the following sub-sections:
Settlement Parameters
o Various options can be selected for each customer
Individual Settlement
o Settlement of the chargeback amounts is done on an agreement-byagreement basis
Payments
o Details for managing payments

Settlement Parameters
These fields are used to customize the settlement relationship between the
manufacturer and the customer.

Settlement Method: This field specifies whether the IP document will be


parked for review or directly settled. There are two types of settlement
methods that can be used:
o Park i.e. Settlement takes place after review.
o Settle without Parking i.e. Settlement takes place directly.
Settlement Amount: This field also determines when the settlement is
carried out. While processing settlement, if for this customer the
settlement amount is reached before the scheduled settlement date then
the system settles the chargeback amount. Thus, settlement takes places
either if the settlement amount is reached or the settlement date is
reached, depending on which occurs first. Also, if the settlement amount
is maintained then it means that Individual Settlement takes place.
Settlement Currency: This field indicates the currency that is used
during settlement with this customer.
Exchange Rate Type: Key representing a type of exchange rate in the
system.
Statistics Currency: The currency used for reporting.
Settle Individually: Requires individual settlement of each Incentives
and Payback document.
Settlement Type: This field specifies how often the settlement takes
place. There are two options to define the type of settlement.
o Daily i.e. Settlement is done on a daily basis
o Settlement Calendar i.e. Settlement is done periodically on
scheduled dates. Click the
button in the top menu bar to see the
scheduled dates for a particular settlement calendar.
o E.g. Settlement can be done at the end of each month
Stlmt Calendar: This field is used only if the option Settlement
Calendar is chosen for the field Settlement Type. It specifies an ID that
represents the combination of settlement dates chosen for the customer.
o E.g. ID 01 represents settlement at month end.
o See also

Conversion Group: This field specifies the adjustment code conversion


group for that customer. The manufacturer usually maps the external
adjustment codes from the vendors to his set of adjustment codes. All
the external adjustment codes for each customer are grouped into the
corresponding conversion group
o E.g. The conversion group for Sysco Foods is SY which contains
external conversion codes SY1, SY2 and SY3 which map to the
manufacturers adjustment codes of 01, 02, and 03.
Document Currency: Currency in which the document is calculated.
Fiscal Year Variant: Provides various fiscal year options.
Transmission Frequency: This calendar displays the dates on which the
customer is scheduled to send claims.

Individual Settlement
Individual Settlement: If this option is checked it means that this
customer has requested Individual Settlement.
The Corresponding Customer specifies the customer number that is
credited when settlement occurs. This party can be the customer itself, a
special department or an outsourced company.

Payments
Payment Terms: Defines payment terms composed of cash discount
percentages and payment periods. E.g., Net 30 or Net 60.
Payment Method: Determines how payments will be made, e.g., by
check, bank transfer or bill of exchange.
Payment Currency: Currency for automatic payment.

Modifications
To make any modifications to Customer Settlement parameters, the
used. This button switches between Display and Change modes.

button is

Add
To add settlement parameters for a customer not displayed in the list, switch to
change mode. Use the
button, add the required information and click save to
add the new settlement parameters. Please note that this will not add a new
customer, it will simply create settlement parameters for an existing customer.
Change
To change settlement parameters for a customer from the list, switch to change
mode. Select the customer, change the editable (white) fields as required and
then save.
Delete
To delete settlement parameters for a customer from the list, switch to change
mode. Select the customer and then click on the
button. Please note that this
will not delete the customer; it will simply delete the settlement parameters for
that customer.

Settlement Calendar Maintenance


It is often necessary to define the periodicity with which the actual debits and
credits pertaining to Chargebacks take place.
There are two types of settlement, depending on how often the settlement takes
place between the vendor and the distributor.
1. Daily i.e. Settlement is done on a daily basis
2. Settlement Calendar i.e. Settlement is done

periodically

on

scheduled

dates. The button


is displayed at the left that helps one to see the
scheduled dates in the calendar.
E.g. Settlement can be done at the end of each month
If the Settlement Type is chosen as Settlement Calendar, a settlement
calendar must be maintained. The settlement calendar lists the individual
settlement dates for that year and can be maintained on a year-to-year basis.

Access
The IP module extends the definition of the SAP calendar maintained in the
transaction SCAL.
The transaction to maintain the Settlement Calendar can be accessed by following
the path
CB
Agreements and Settlement
Settlement Dates Calendar
Maintain.
The transaction code is /IRM/IPSCALM.

IP Calendar Overview
Every combination of settlement dates is represented with a Calendar ID.
E.g. ID 01 represents settlement at month end.
When the Calendar ID is specified, the Calendar is displayed with the Settlement
Dates marked.
Modifications
To make any modifications to the calendar for that particular calendar ID,
the
modes.
ADD

button is used. This button switches between Display and Change

To add new dates to the Calendar ID, switch to change mode. Click on the
button, provide the required information and save in order to add the settlement
dates.
DELETE
To delete settlement dates for that Calendar ID, switch to change mode. Click on
the
button, provide the required information and save in order to delete the
settlement dates.

Structure of a Chargeback Document

Chargeback documents are created with reference to billing documents and sales
documents.
The data in the Chargeback document originates from the following sources:
Data from Master Records such as customer, vendor and material master.
Data determined by the system based on customizing settings.
Data from Source Documents such as, Header, Pricing, Item and Partner data.
VOFM Data Transfer and Requirements - Data determined from the master
records and source documents can be extended or modified by using routines
defined in transaction /IRM/GVOFM.
The Chargeback Document has three sections: General information, Header Level
Data and Item Level Data. To hide a section at any time, click on the
button present on the left of the section.
CHARGEBACK DOCUMENT

General Information:
Chargeback Document Number: This gives the unique identification number
for this chargeback document.
Debit/Credit Indicator: This field specifies whether the funds are incoming or
outgoing.
Invoice Number/ Sales Order: This field refers to the Source Document for
which the Chargeback Document was created. To see the document, double
click in this field.
Net Value: This specifies the total chargeback amount for the document.
Vendor: This field specifies the Vendor from whom the chargeback will be
claimed.

Header Level Data:


The Header tab contains general information about the sale for which the
chargeback is being claimed. None of the fields here are editable.
The Partner tab contains all the partners involved in the sale. You can change
the display of the type of partner based on the display criteria.
The Status tab displays the System Status and User Status. The User
Status can be maintained at the IP document header and item level. This is
controlled by Customizing settings. The System Status displays the
following:
Accrual status: The applicable values are,
Not yet processed
Partially processed
Completely processed
Parking Status: The applicable values are,
Not yet Parked
Partially Parked
Completely Parked
Settlement Status: The applicable values are,
Not relevant
Not yet Settled
Partially Settled
Completely Settled
oThe Notes tab is used to maintain notes at the header level to track and
share information. Every note is tagged with a date, time and user
stamp.
oThe Admin Data tab is used to track administrative data related to
creation and modification. If a Repricing Block code has been
selected for this document, then the Reprice function cannot be used
for this document. The Reprice Block Code can be set to prevent the
system from repricing the IP document. This may be required when a
specific IP document has special pricing that is maintained by the user.
During the collective processing, these CB documents should be
skipped for repricing.

Item Level Data


Items are mainly created by taking eligible items from the source document. Each
line in this section has item specific data. The details for each item can be seen in
a separate window by selecting the line item and clicking on the
button.
The important fields include
Item: This gives the item number of that item in this chargeback document.
When this field is clicked, the pricing for that item is displayed. It shows how
the chargeback amount for the item is obtained. Pricing can also be obtained
by clicking on the
button.
Material: This field shows the item for which chargeback is calculated. When
this field is clicked, it takes one to the material data in the master data.
Agreement: This gives the agreement number based on which the net
chargeback amount is arrived at. The system scans through the condition
types to find the favorable chargeback amount. When the system obtains the
most favorable chargeback amount, it displays the agreement that is tied to
that condition record. A click on the agreement number displays the
agreement.
Accepted Amount Status

This status reflects the status of partner response during correspondence


regarding claim amount. Following values are possible for accepted amount
status,
A - Accepted amount within tolerance
B - Accepted amount outside tolerance
C - Accepted amount outside tolerance and adjusted
D - Accepted amount within tolerance and adjusted
X - Accepted amount matches Original Claim Amount.
When the chargeback document is updated with the Vendors response, the line
items undergo a color change to reflect the Accepted Amount status. The color

legend can be seen by clicking on the


button.
Adjustment Codes
A parked or settled claim is sometimes contested by the recipient. The recipient
can provide the reason for the disagreement in the form of an adjustment code.
External Adjustment codes can be maintained with their respective internal
adjustment codes. The system automatically performs the conversions. The
adjustment codes can be entered in the item grid of the IP document.
Settlement Block: This field determines whether the item has a settlement
block and for what reason. Thus, if the document is being settled and
Settlement Block is set for at least one item, then the system status shows
Partially Settled. A settlement block can be set to prevent the system from
settling the CB document to SAP FI. If a certain IP document is being
investigated either internally or externally by a partner, it may be required to
block the settlement of the document until the investigation has been
completed.
Claim Status
The Claim Status is based on the recipients response and can have the following
values:
Accepted
Rejected
Accepted with Changes
The entire claim as well as every item in the claim can have a corresponding
claim status.
Settlement Status: This field specifies the status of the settlement phase. The
applicable values for this field are,
Not yet Processed
Parked
Settled
Reverse Parked
Reverse Settled
Force Settled
Settled through Composite IP

Partner Communication Number: This gives us the number of the Partner


Communication Document that was used for correspondence with the vendor.
User Status: The user status is maintained at the item level as well as the
header level. This is controlled by Customizing settings. The user status for an
item can be seen by choosing the item and then clicking on the

button.

Control Settings of a Chargeback Document


The creation of a CB Document is controlled by the following parameters
maintained in Customizing that can be accessed using transaction /IRM/IPSPRO:
Sales Area of the Source Document Defined as the concatenation of the
Sales Organization, Distribution Channel and Division
Partner functions from Source Documents One CB document can be
created for every vendor partner role on the source document
Source Document Category and Type At times, it may be required
that Chargeback Documents are created only for certain source document
types such as customer billing documents and credit memos but not for
intercompany invoices. The source document category (e.g M - Invoice) and
the type (e.g. F2-Customer Invoice) along with the primary partner role control
the creation of the IP document.
IP
Type
This
primarily
controls
whether
the CB document
is
Incoming/Outgoing, i.e. an income/expense.
Item Category from Source Documents Only certain items from the source
documents may be eligible for inclusion in the CB document. This is controlled
by the item categories in the source document in conjunction with the IP
Type i.e. Chargebacks.
The subsequent functions of a CB document are controlled using the following
profiles maintained in Customizing that can be accessed using transaction
/IRM/IPSPRO:
Accrual Profile This controls how the income/expense gets posted, the FI
document type and posting keys to be used during the accrual. It is also
important to specify a Clearing Account that will be used to record the
income/expense to until the IP document is settled.
Settlement Profile This controls whether the actual settlement takes place
as Accounts Payable or Account Receivable and the FI document type used
during Settlement.

Individual creation of Chargeback Documents


To create individual Chargeback Documents, the Chargeback Workbench is used.
To access the Chargebacks Workbench, choose Chargebacks Workbench from
the SAP user menu.
The transaction code is /IRM/IPCBM.
Follow the procedure to create a chargeback document using the workbench:
From the CB Workbench, select the
(Search) button on the toolbar of the
bottom left grid.
Depending on your selection of the Source Document, a selection screen for
billing or sales documents is presented. Enter the search criteria for the source
document and then click on
(Execute). The search can also be based on
the Header, Item or Partner data of the source document by clicking on
the
button.
The selected source documents are shown in the bottom left grid.
Click on the

button to switch to change mode.

Select the source documents one at a time and click on the


(Execute)
button of the toolbar the bottom left grid and select the Create option.
In the IP Type selection screen, choose Chargebacks and click on
.
Note: For any of the selection criteria, if it is possible to exclude values within a
range, include values not belonging to a range, or to search for more than one
category. Click on the
button to enter complex selection criteria to
obtain several possibilities.
A Chargeback Document is created for every vendor for one or more items.
The Chargeback documents created are shown below the source documents in
the bottom grid.
Any subsequent processes can be made to these Chargeback Documents one at a
time using the Chargeback Workbench.

Collective creation of Chargeback Documents


To create Chargeback Documents in a collective manner, the Chargeback Mass
Processing transactions are used.
The Chargeback Document can be collectively created from a range of Billing
Documents or Sales Orders.
The transaction to create the chargeback documents from the source documents
can be accessed by using the menu path
CB
Mass Processing
IP-Chargebacks-Billing Mass Process (Billing
Source Documents)
The transaction code is /IRM/IPCB21.
OR
CB
Mass Processing
IP-Chargebacks-Sales Mass Process (Sales
Source Documents)
The transaction code is /IRM/IPCB22.
Follow the procedure to create a chargeback document using Mass processing:
In the selection screen, enter the range of the Source Document and other
criteria for the source document.
Check Docindex if the table is to be used as a search criterion.
Choose the function as Create. Also, it is possible to accrue these documents at
the same time by checking Accrue.
In the IP Type selection, choose Chargebacks.
The Commit Frequency specifies the number of source documents that will be
processed at a time to create Chargeback Documents.
These programs can be setup to run in background mode using variants. Select
the kind of messages you want the system to capture while the task is being
processed in the background. The message log is saved to the database for
further analysis.
Click on

(Execute). The search can also be based on the Header, Item or

Partner data of the source document by clicking on the

button.

Note: For any of the selection criteria, if it is possible to exclude values within a
range, include values not belonging to a range, or to search for more than one

category. Click on the


obtain several possibilities.

button to enter

complex

selection

criteria to

Subsequent Chargeback Functions


Once a Chargeback Document is created, it undergoes a life cycle of its own.
If there are any changes in the agreement or billing documents which must be
reflected
on
the
chargeback
document,
then
the
document
is repriced or recreated.
Besides
the
basic
functions, subsequent
functions are carried
out on
the chargeback document to settle the claim between vendor and distributor.
They are enlisted as follows:
Accrual
Parking
Reconciliation
Settlement
Completion

Introduction to Accrual
Accrual is a process that involves financial postings against a Chargeback Income
Account and a Clearing Account. The financial postings are controlled by
theDebit/Credit indicator at the Header level of the Chargeback Document.
An Incoming indicator represents an incoming document and the accrual is posted as
an income or reduction in cost. This usually takes place when the entire chargeback
amount is to be claimed from the vendor. An Outgoing indicator represents an
outgoing document and the accrual is posted as an expense. This usually takes place if
the customer returns the product and a certain amount has to be paid back to the
vendor.
During Accrual, there is no physical transfer of funds between the accounts. The
accrual process helps the company to determine what its financial position will be
after all the chargeback claims are settled. The accrual status of the chargeback
document is displayed at the Header Level Status tab of the Chargeback
Document. The three applicable values for Accrual status are Not yet
processed, Partially processed and Completely processed.
Accrual is usually carried out after the chargeback document is created. Before
Accrual takes place, the status reflects Not yet processed. Consider the example
of an incoming accrual. When the accrual takes place, the Chargeback Income
Account is credited by the net value of the Chargeback Amount and the Clearing
Account is debited by the same amount. The reverse takes place in case of
an incoming accrual. This is clearly displayed in the accounting document got from
the Document Flow, as explained later. At this point it shows the accrual status
as Completely processed. However, due to certain situations, accrual status
may change from Completely processed to Partially processed.
When a CB document is repriced, the net chargeback amount changes and hence
the original postings made against the accounts must be reversed. When the
reprice function is carried out, the system does not automatically reverse the
original postings. The document must undergo reverse accrual. In the incoming

accrual case, the Chargeback Income Account is debited and the Clearing Account
is credited by the original chargeback amount. An Accrual Reversal Document is
created to reflect these postings. The system status is now changed to Partially
processed. Thus, before proceeding to the parking or settlement stage, the
document has to be re-accrued.
When a CB document has to be recreated and if the Accrual status is Completely
processed, then the accrual must be reversed before the document is
recreated. This is due to the fact that during recreation the original document
must be deleted but the document cannot be deleted if it has any account
postings associated with it. The new Chargeback document thus created will have
its accrual status as Not yet processed.

Introduction to Parking
It is often necessary to provide an opportunity to the partner, i.e. the
manufacturer to review the settlement before the actual debit/credit takes
place. This process is known as Parking.
Parking takes place depending on the Agreement Settlement Parameters and the
Vendor/Customer Settlement Parameters and whether the process is taking place
online or in the background. After all considerations, if the Settlement Method
is chosen as Park, then the Chargeback Document is parked. If it is chosen
as Settle without Park, then Immediate Settlement takes place i.e. Settlement
is carried out without the vendor having a chance to review the claim.
During parking, the claim for the chargeback amount is submitted to the vendor
using some kind of correspondence. The kind of correspondence used is governed
by the Agreement Settlement Parameters and the Vendor/Customer Settlement
Parameters. This creates a parked document in SAP-FI. The term Parked
Document/Settlement Document and Claim are used interchangeably in the
Chargeback Application.
Once the claim is submitted, the vendor must respond to it within the number
of Response days as specified in the Vendor Settlement Parameters. If the
vendor does not respond within the specified number of days then the documents
will be settled. However, after the settlement, if there are any disputes from the
vendor then they are resolved used Post Settlement Adjustments.
The parking status of the chargeback document is displayed at the Header
Level Status tab of the Chargeback Document. The three applicable values
forParking Status are Not yet Parked, Partially Parked and Completely
Parked.
Parking is usually carried out after accrual. Before Parking takes place, the status
reflects Not yet processed. When parking takes place and if all the items in the
chargeback document are parked, then the parking status is Completely
Parked. If at least one item is parked but not all, then the parking status
isPartially Parked.
While a chargeback claim is parked, there may be changes in the agreement or
billing
document.
Thus,
the
CB
document
has
to
be repriced or recreated.During repricing,
the
net
chargeback
amount
changes, hence the claim has to be resubmitted and the necessary adjustments
are to be made. In this case the vendor must respond by the number of days
mentioned in the Resubmit response Days field in the Vendor Settlement
Parameters . When a CB document has to be recreated and if the Parking Status
is Completely or Partially parked, then the parking must be reversed before
the document is recreated. The new Chargeback document thus created will have
its Parking status as Not yet Parked.

A Parking document is created for the chargeback document. If individual


settlement is checked in the agreement or vendor level parameters then all items
belonging to the same agreement will be on the same Parked document. Thus the
number of parked documents will be the same as the number of agreements.
When settlement takes place, the parked document becomes the settlement
document.

Introduction to Reconciliation
Reconciliation is defined as the process used to resolve the difference between the
claimed amount and the accepted amount. The accepted amount is recorded
directly in the IP document or updated via the Partner Communication document.
Reconciliation typically takes place during Parking. If Immediate settlement is
carried out then the Reconciliation is carried out as a Post Settlement Adjustment.
If the vendor does not approve of the claim amount sent by the distributor, then
he proposes a different amount. This amount may be within tolerance or outside
tolerance for the distributor. If it is within tolerance then the distributor usually
accepts it and settles the document. If the amount is outside tolerance, the
distributor may opt to reconcile to get a higher chargeback amount or may accept
the amount. The tolerance limit can be set up as per the distributors preferences.
After reconciliation, the final chargeback amount agreed upon by both parties is
settled. If there are any changes after settlement, then they are made effective as
a Post Settlement Adjustment.
A pricing formula with a $5 tolerance limit is delivered as a template with the
reports
/IRM/IP_PRICING_EXPECTED_PRICE and
/IRM/IP_PRICING_EXPECTED_VALUE

Introduction to Settlement
Settlement is the process
that
involves
financial
postings
against
a Vendor account and a Clearing Account. The financial postings are controlled by
theDebit/Credit indicator at the Header level of the Chargeback Document.
An Incoming indicator represents an incoming document and the settlement is
posted as an income or reduction in cost. This usually takes place when the entire
chargeback amount is to be claimed from the vendor. An Outgoingindicator
represents an outgoing document and the settlement is posted an expense. This
usually takes place if the customer returns the product and a certain amount has
to be paid back to the vendor.
During Settlement, there is actual transfer of funds between the accounts. During
Settlement, the chargeback amount is then debited from the vendors account and
credited to the Clearing Account. Thus, after settlement takes place the clearing
account is balanced, the Chargeback Income account is credited and the Vendor
Account is debited by the Chargeback amount. The settlement creates an FIAccounts Receivable or Accounts Payable document based on the settings in the
Settlement Profile.
Before Settlement takes place, the Accrual status must be Completely
Processed. If the Accrual status is Partially Processed, then accrual must be
carried out prior to Settlement. The amount for which debit/credit takes place in
accrual must be the same as final chargeback amount agreed upon by both the
parties.

Based on either the Agreement Settlement Parameters, the Vendor Settlement


Parameters or Customer Settlement Parameters, the Chargeback Document items
are either parked or directly settled.
If the items have been parked, then the accepted amount status of every item in
the claim must have the values C, D or X as noted below, before the claim can be
settled.
A Accepted amount within tolerance
B - Accepted amount outside tolerance
C - Accepted amount outside tolerance and adjusted
D - Accepted amount within tolerance and adjusted
X - Accepted amount matches Original Claim Amount
The Settlement status of the chargeback document is displayed at the Header
Level Status tab of the Chargeback Document. The three applicable values
forSettlement status are Not
yet Settled,
Partially
Settled and Completely Settled.
Before Settlement takes place, the status reflects Not yet Settled. If Parking has
taken place then the Settlement Status will be the same as the Parking. Thus, if
the parking status is Partially/Completely Parked then the settlement Status
will also be Partially/Completely Settled. In this case the Parked document
becomes the Settlement Document. The corresponding accounting document
shows the transfer of funds.
If Immediate settlement is carried out then, all the items are settled, unless a
settlement block has been assigned to them. If all the items on the chargeback
document are settled the settlement status is Completely Settled or else it
is Partially Settled.
When a CB document has to be recreated and if the Settlement status
is Completely processed, then the Settlement must be reversed before the
document is recreated. This is due to the fact that during recreation the original
document must be deleted but the document cannot be deleted if it has any
account postings associated with it. The new Chargeback document thus created
will have its Settlement status as Not yet Settled.
After settlement, the Chargeback Document cannot be repriced as any changes in
the agreement will not affect the current document since the funds have already
been transferred. After settlement, only reconciliation in the form of Post
Settlement Adjustment can be carried out.

Completion
Once the settlement and all post settlement adjustments are carried out, the
chargeback document can be assigned a completion status. The chargeback
document can then be archived for future references.
The completion can be carried out using the Mass Processing transactions for
Chargeback Documents.

Chargebacks Workbench
The Chargebacks Workbench is used to create and perform subsequent functions
on Chargeback documents. However, the creation and subsequent processing can
be done for only one CB document at a time. To process more than one CB

document, mass processing transactions or Search and Process transactions


are used.
Access
The Chargebacks Workbench can be accessed by the SAP User menu.
The transaction code is /IRM/IPCBM.
Structure
The Workbench is organized in 3 sections
Search and Work list Top Left Side
Source Documents and Chargeback Document list Bottom Left Side
Chargeback Document Right Hand Side.
Search and Work list
In this section, Chargeback documents can be searched with multiple criteria.
The
button is used for a new search of chargeback documents. The results
from this search will be displayed after clearing all the previous search results.
Multiple CB documents can be searched however only one can be processed at a
time.
The
button is used to conduct a search that will not clear results from a
previous search. The new CB documents found will append to the current list of
CB Documents.
The
button is used to switch to change mode to carry out further processing
of the document.
The
button gives a dropdown menu to select the function to be performed
on the CB document. The same options can be got from Chargebacks in the
menu bar.
The
button is used to create a work list. The user can create their
Work lists from the selected documents for quick reference. The Work List tab
displays all the work list documents for the users.
The

button is used to add the document to the users Favorites list.

Source Documents and Chargeback Document list


In this section, Chargeback documents are created and listed from the source
documents.
The
button is used to carry out a new search for the source document from
which Chargeback document can be created. It can be a sales order or a billing
document. The results from this search will be displayed after clearing all the
previous search results. Multiple source documents can be searched however only
one can be used at a time to create CB Documents.
The
button is used to conduct a search that will not clear results from a
previous search. The new source documents found will append to the current list
of source documents.
The
button gives a dropdown menu to select the function to be performed
on the CB document. The dropdown gives an option to Create, Reprice, and
Recreate.

Chargeback Document
In this section, the chargeback document currently being processed is displayed.
It is further split into Main Information, Header Tabs and the Item Grid.
See Also

Display and
document

Change

single

Chargeback

Since a single CB Document is to be displayed and changed, the Chargebacks


Workbench is used. Follow these steps:
From the CB Workbench, select the
button from the "Search" tab.
A selection screen with numerous search criteria is presented. A logical database
comprising all fields from the IP document header or item is also available for
selection.
Enter the search criteria for the chargeback document and then click on
(Execute). The search can also be based on the Header, Item or Partner data of
the source document by clicking on the
button.
Note: For any of the selection criteria, if it is possible to exclude values within a
range, include values not belonging to a range, or to search for more than one
category. Click on the
several possibilities.

button to enter complex selection criteria to obtain

The selected CB documents are shown in the top left grid.


To display the CB document, one at a time, click on the hot spot for the CB
document number.
To change the CB document, click on the hot spot for the CB document number
to display it and then click on the

button to switch to Change mode.

In Change mode, the


button gives a dropdown menu to select the
function to be performed on the CB document. The same options can be got
from Chargebacks in the menu bar.

Display and Change multiple Chargeback


documents
In practical scenarios, changes are collectively made to chargeback documents.
Thus, we use the different available transactions for collective processing.
Method 1:
The transactions to be used can be accessed using the menu path,

CB
Search and Process
IP-Chargebacks-Billing Process
(Using Billing Source Documents)
The transaction code is /IRM/IPCB31.
OR
CB
Search and Process
IP-Chargebacks-Sales Process
(Using Sales Source Documents)
The transaction code is /IRM/IPCB32.
OR
CB
Search and Process
IP-Chargebacks-Process
The transaction code is /IRM/IPCB33.
A selection screen with numerous search criteria is presented. A logical database
comprising all fields from the IP document header or item is also available for
selection.
Enter the search criteria to find the required chargeback document and then
click on

(Execute). The search can also be based on the Header, Item or

Partner data of the source document by clicking on the


button.
Note: For any of the selection criteria, if it is possible to exclude values within a
range, include values not belonging to a range, or to search for more than one
category. Click on the
button to enter complex selection criteria to obtain
several possibilities.
The resulting documents are displayed in a hierarchical list as Header and
Items. This gives one an option to see the list of documents prior to
processing.
Multiple CB documents can be selected by clicking on the checkboxes for further
display and/or change.
After selecting the CB documents to be processed, the required function can be
chosen by clicking on Chargebacks or Subsequent Functions on the menu
bar.

Method 2:
The transaction to be used can be accessed using the menu path,
CB
Mass Processing
IP-Chargebacks-Mass Process
The Transaction Code is /IRM/IPCB23.
In this transaction, in addition to the regular selection screen, it allows one to
specify what subsequent changes must be applied to the CB document.
In the selection screen, enter the range of the document and other search
criteria.
If you select the Reprice or Recreate option, and it is desired that accruals are
posted at the same time, then select the Post Accruals checkbox.
If you select the Park or Settle option, then you have the option of checking
the Simulation box which simply shows how the various accounts will be
affected if settlement is complete. If the simulation displays satisfactory
results, then settlement can be carried out.
If you select the Set Completion Status, then the system will assign a
Completed Status to the CB document, no more changes are made to the
document and the document is archived.
The Offset Days for Park/Settle is used if one has prior knowledge that, due
to certain circumstances, settlement of the documents will take place one or
more days earlier or later than the scheduled date. The number in the field
specifies the number of days that the system must adjust from the current
system date to process the documents.

The Commit Frequency specifies the number of CB documents that will be


processed at a time to carry out the subsequent function.
These programs can also be setup to run in background mode using variants.
Select the kind of messages you want the system to capture while the task is
being processed in the background. The message log is saved to the database
for further analysis.
The mass processing can be carried out online or in the background. If the
document processing is done online, then the results will be displayed as a pop
up. If it is done in the background then to see the results, one must see
the message log.
The difference between Method 1 and 2 is that in case of Search and
Process, the documents that satisfy the search criteria are first displayed,
undergo further selection and then processed. In case of mass
processing, all the documents that satisfy the search criteria are directly
processed without any prior display.

Reprice
There are certain practical situations where the Chargeback document must be
repriced. Repricing updates the current CB Document to reflect the most recent
changes made to an agreement or billing document. If the agreement between
the vendor and distributor changes at a later date, the corresponding pricing in
the CB document also changes. The agreement may change after the sale, accrual
or parking. Changes in the agreement may be due to a change in the condition
records tied to the agreement. This, in turn, would affect the pricing of each item
on the chargeback document. Thus, before proceeding with any other function,
the chargeback document must be repriced. Also, if there are some items added
to the billing document after the chargeback document has already been created,
then the document must be repriced to include the new items. After repricing, it is
required to accrue the document again due to a change in the amount.
However, repricing cannot be carried out if there is a reprice block on the
chargeback document. To find if the document has a repricing block, go to
theAdmin tab of the header data of the CB document. If the CB document has
already been settled and new items were added to the invoice, then on repricing
the CB Document, the already settled items are not affected.
Chargeback Documents can be repriced in two ways:
Individually using the Chargebacks Workbench or
Collectively using Mass Processing

Reprice a single Chargeback document


To reprice a single Chargeback document, we use the Chargebacks Workbench.

Method 1:
From the top left part of the CB Workbench, select the
"Search" tab.

button from the

A selection screen with numerous search criteria is presented. A logical database


comprising all fields from the IP document header or item is also available for
selection.
Enter the search criteria for the chargeback document and then click on
(Execute). The search can also be based on the Header, Item or Partner data of
the source document by clicking on the
button.
Note: For any of the selection criteria, if it is possible to exclude values within a
range, include values not belonging to a range, or to search for more than one
category. Click on the
several possibilities.

button to enter complex selection criteria to obtain

The selected CB documents are shown in the top left grid.


To reprice the CB document, click on the hot spot for the CB document number
to display it and then click on the

button to switch to Change mode.

In Change mode, the


button gives a dropdown menu to select the
function to be performed on the CB document. The same options can be got
from Chargebacks in the menu bar. Select the Reprice option.
The Chargeback Document is then repriced to include any new items added to
the source billing document and/or to reflect any changes in the agreements
used by the system to calculate the net chargeback amount.

Method 2:
From the CB Workbench, select the
(Search) button on the toolbar of the
bottom left grid.
Depending on your selection of the Source Document, a selection screen for
billing or sales documents is presented. Enter the search criteria for the source
document and then click on
(Execute). The search can also be based on
the Header, Item or Partner data of the source document by clicking on
the
button.
The selected source documents are shown in the bottom left grid. The CB
documents already created for these source documents are also shown.
Click on the
button to switch to change mode.
Select the CB document which needs to be repriced one at a time and click on
the
(Execute) button of the toolbar the bottom left grid and select
the Reprice option.
The Chargeback Document is then repriced to include any new items added to
the source billing document and/or to reflect any changes in the agreements
used by the system to calculate the net chargeback amount.

Reprice multiple Chargeback documents


Method 1:
This method involves using the mass transactions for Chargeback processing.

CB
Mass
Processing
IP-Chargebacks-Billing
Process (Using Billing Source Documents)
The transaction code is /IRM/IPCB21.
OR
CB
Mass
Processing
IP-Chargebacks-Sales
Process (Using Sales Source Documents)
The transaction code is /IRM/IPCB22.
OR
CB
Mass Processing
IP-Chargebacks-Mass Process
(Using Chargeback Documents)
The transaction code is /IRM/IPCB23.

Mass

Mass

Follow the procedure to reprice a chargeback document using Mass processing:


In the selection screen, enter the range of the document and
other search criteria.
In case of /IRM/IPCB21 or /IRM/IPCB22, check Docindex if the table is to
be used as a search criterion. If you choose the function as
Choose the function as Reprice. Also, it is possible to accrue these documents
at the same time by checking Accrue or Post Accruals, as applicable.
In the IP Type selection, choose Chargebacks.
The Commit Frequency specifies the number of source/CB documents that will
be processed at a time to reprice Chargeback Documents.
These programs can also be setup to run in background mode using variants.
Select the kind of messages you want the system to capture while the task is
being processed in the background. The message log is saved to the database
for further analysis.
Click on

(Execute). The search can also be based on the Header, Item or

Partner data of the source document by clicking on the


button.
The Chargeback Documents are then repriced to include any new items added to
the source billing documents and/or to reflect any changes in the agreements
used by the system to calculate the net chargeback amount.
Note: For any of the selection criteria, if it is possible to exclude values within a
range, include values not belonging to a range, or to search for more than one
category. Click on the
button to enter complex selection criteria to
obtain several possibilities.
The mass processing can be carried out online or in the background. If the
document processing is done online, then the results will be displayed as a pop
up. If it is done in the background then to see the results, one must see
the message log.

Method 2:
This method involves using the Search and Process for Chargeback
documents.
CB
Search and Process
IP-Chargebacks-Billing Process
The transaction code is /IRM/IPCB31.
OR
CB
Search and Process
IP-Chargebacks-Sales Process
The transaction code is /IRM/IPCB32.
OR

CB
Search and Process
IP-Chargebacks-Process
The transaction code is /IRM/IPCB33.
A selection screen with numerous search criteria is presented. A logical database
comprising all fields from the IP document header or item is also available for
selection.
Select the IP Type as Chargebacks.
Enter the remaining search criteria for the chargeback document and then click
on

(Execute). The search can also be based on the Header, Item or

Partner data of the source document by clicking on the


button.
Note: For any of the selection criteria, if it is possible to exclude values within a
range, include values not belonging to a range, or to search for more than one

category. Click on the


button to enter complex selection criteria to obtain
several possibilities.
The resulting documents are displayed in a hierarchical list as Header and
Items. This gives one an option to see the list of documents prior to
processing.
Multiple CB documents can be selected by clicking on the checkboxes for
further processing.
After selecting the CB documents to be processed, the required function can be
chosen by clicking on Subsequent Functions on the menu bar and then
clicking on Reprice.
The Chargeback Documents are then repriced to include any new items added to
the source billing documents and/or to reflect any changes in the agreements
used by the system to calculate the net chargeback amount.

The difference between Method 1 and 2 is that in case of Search and


Process, the documents that satisfy the search criteria are first displayed,
undergo further selection and then processed. In case of mass
processing, all the documents that satisfy the search criteria are directly
processed without any prior display.

Recreate
There are certain practical situations where the Chargeback document must be
recreated. Recreating is done for the same purposes as repricing. If the
agreement between the vendor and distributor changes at a later date, the
corresponding pricing in the CB document also changes. The agreement may
change after the sale, accrual or parking. Changing the agreement implies that
the condition records in the agreement have been changed. This, in turn, would
affect the pricing of each item on the chargeback document. Thus, before
proceeding with any other function, the chargeback document must be repriced or
recreated. Also, if there are some items added to the billing document after the
chargeback document has already been created, then the document must be
repriced or recreated to include the new items.
Repricing updates the current CB Document to reflect the most recent changes
made to an agreement or billing document. However, in case ofRecreating, the
system deletes the old chargeback document and creates a new chargeback
document, incorporated with all the required changes.

There are two types of deletions carried out by the system. A physical delete is
carried out if the Chargeback document had no accounting documents linked to it.
This means that the physical entry of the document is completely removed from
the database. A soft delete is carried out when there are accounting documents
linked to the chargeback document. This means that the document entry still
resides in the database but is inactive.
It is important to note that if there are any accounting documents linked to the
chargeback document, then their corresponding functions must be reversed
before Recreation is carried out. This is due to the fact that the chargeback
document is deleted before it is recreated.
Chargeback Documents can be recreated in two ways:
Individually using the Chargebacks Workbench or
Collectively using Mass Processing

Recreate a single Chargeback document


To recreate a single Chargeback document, we use the Chargebacks Workbench.

Method 1:
From the top left part of the CB Workbench, select the
button from the
"Search" tab.
A selection screen with numerous search criteria is presented. A logical database
comprising all fields from the IP document header or item is also available for
selection.
Enter the search criteria for the chargeback document and then click on
(Execute). The search can also be based on the Header, Item or Partner data of
the source document by clicking on the
button.
Note: For any of the selection criteria, if it is possible to exclude values within a
range, include values not belonging to a range, or to search for more than one
category. Click on the
several possibilities.

button to enter complex selection criteria to obtain

The selected CB documents are shown in the top left grid.


To recreate the CB document, click on the hot spot for the CB document number
to display it and then click on the

button to switch to Change mode.

In Change mode, the


button gives a dropdown menu to select the
function to be performed on the CB document. The same options can be got
from Chargebacks in the menu bar. Select the Recreate option.
The current Chargeback Document is then deleted and recreated to include any
new items added to the source billing document and/or to reflect any changes
in the agreements used by the system to calculate the net chargeback amount.

Method 2:
From the CB Workbench, select the
bottom left grid.

(Search) button on the toolbar of the

Depending on your selection of the Source Document, a selection screen for


billing or sales documents is presented. Enter the search criteria for the source
document and then click on
(Execute). The search can also be based on
the Header, Item or Partner data of the source document by clicking on
the
button.
The selected source documents are shown in the bottom left grid. The CB
documents already created for these source documents are also shown.
Click on the
button to switch to change mode.
Select the source document for which CB documents need to be recreated one
at a time and click on the
(Execute) button of the toolbar the bottom
left grid and select the Recreate option.
The Chargeback Document is then deleted and recreated to include any new
items added to the source billing document and/or to reflect any changes in the
agreements used by the system to calculate the net chargeback amount.

Recreate multiple Chargeback documents


Method 1:
This method involves using the mass transactions for Chargeback processing.
CB
Mass
Processing
IP-Chargebacks-Billing
Mass
Process (Using Billing Source Documents)
The transaction code is /IRM/IPCB21.
OR
CB
Mass
Processing
IP-Chargebacks-Sales
Mass
Process (Using Sales Source Documents)
The transaction code is /IRM/IPCB22.
OR
CB
Mass
Processing
IP-Chargebacks-Mass
Process (Using
Chargeback Documents)
The transaction code is /IRM/IPCB23.
Follow the
processing:

procedure

to recreate a

chargeback

document

using

Mass

In the selection screen, enter the range of the document and other search
criteria.
In case of /IRM/IPCB21 or /IRM/IPCB22, check Docindex if the table is to
be used as a search criterion.
Choose the function as Recreate. Also, it is possible to accrue these documents
at the same time by checking Accrue or Post Accruals, as applicable.
In the IP Type selection, choose Chargebacks.
The Commit Frequency specifies the number of source/CB documents that will
be processed at a time to recreate Chargeback Documents.
These programs can also be setup to run in background mode using variants.
Select the kind of messages you want the system to capture while the task is
being processed in the background. The message log is saved to the database
for further analysis.

Click on

(Execute). The search can also be based on the Header, Item or

Partner data of the source document by clicking on the


button.
The current Chargeback Documents are then deleted and recreated to include
any new items added to the source billing document and/or to reflect any
changes in the agreements used by the system to calculate the net chargeback
amount.
Note: For any of the selection criteria, if it is possible to exclude values within a
range, include values not belonging to a range, or to search for more than one
category. Click on the
button to enter complex selection criteria to
obtain several possibilities.
The mass processing can be carried out online or in the background. If the
document processing is done online, then the results will be displayed as a pop
up. If it is done in the background then to see the results, one must see
the message log.

Method 2:
This method involves using the Search and Process for Chargeback
documents.
CB
Search and Process
IP-Chargebacks-Billing Process
The transaction code is /IRM/IPCB31.
OR
CB
Search and Process
IP-Chargebacks-Sales Process
The transaction code is /IRM/IPCB32.
OR
CB
Search and Process
IP-Chargebacks-Process
The transaction code is /IRM/IPCB33.
A selection screen with numerous search criteria is presented. A logical database
comprising all fields from the IP document header or item is also available for
selection.
Select the IP Type as Chargebacks.
Enter the remaining search criteria for the chargeback document and then click
on

(Execute). The search can also be based on the Header, Item or

Partner data of the source document by clicking on the


button.
Note: For any of the selection criteria, if it is possible to exclude values within a
range, include values not belonging to a range, or to search for more than one

category. Click on the


button to enter complex selection criteria to obtain
several possibilities.
The resulting documents are displayed in a hierarchical list as Header and
Items. This gives one an option to see the list of documents prior to
processing.
Multiple CB documents can be selected by clicking on the checkboxes for
further processing.
After selecting the CB documents to be processed, the required function can be
chosen by clicking on Subsequent Functions on the menu bar and then
clicking on Recreate.
The current Chargeback Documents are then deleted and recreated to include
any new items added to the source billing document and/or to reflect any

changes in the agreements used by the system to calculate the net chargeback
amount.
The difference between Method 1 and 2 is that in case of Search and
Process, the documents that satisfy the search criteria are first displayed,
undergo further selection and then processed. In case of mass
processing, all the documents that satisfy the search criteria are directly
processed without any prior display.

Purpose of Composite IP
Composite IP chargebacks are based on attainment of quotas and targets. The IP
Module offers sophisticated functionality to model, track and administer Composite
IP plans of any complexity. Composite Processing aggregates data across time
periods and applies rules and conditions from agreements to calculate
the chargeback amounts.
Accrual and Settlement does not take place at the document level it is
performed at the participant level. Chargebacks can be based on a percentage or
on a flat rate scale of the vendor partner sales activity in a month.
The primary driver behind composite processing is a matrix which reflects the
target and actual key figures being tracked for the plan. The actual key figures
may be updated from the IP documents or can be entered directly in the matrix.
Target key figures may be in the form of flat rates, standard percentage rates, or
any user-defined rate criteria. Auxiliary data such as manual adjustments, etc.
can also be tracked in matrices.

Introduction to Composite IP
What is Composite (IP)?
Composite IP is another model of the IP Module. If the incentives and paybacks
calculations related to Logistics (Sales & Distribution, Material Management)
business processes is to be done on a document by document basis, then the
transaction model of the IP Module is used. However, if the calculations are to be
done based on aggregated data or based on comparison with quotas, then the
composite model is used.
The Composite IP is designed to accommodate all possible scenarios that a
business is typically challenged with during its payouts and sales activities.

All the applications supported by the IP Module have the Composite model:
Chargebacks (CB)
Sales Commission and Incentive Compensation (SI)
Billbacks (BB)
Sales Rebates (SR) *formerly known as Customer Rebates (CR)
Purchasing Rebates (PR)

Tracking several Participants-Multiple Plans


If a participant(s) participates in a multiple deployment codes, the tracking
information and results for all deployment codes can be simultaneously presented.

The end user does not have to know how many plans the participant is in, they
can search by participant name and other search criteria. This allows the plan
administrator to view results for several participants or for
managers/distributors to view the results of business partners participating in
multiple plans.
In the SAP/IP Menu choose CB - Composite Processing Administration and
Tracking CB: Composite IP Participant Process or T-code: /IRM/IPCBCPP
On the application screen, enter the following information:
Field Name

Entry Value

Particip Type:

Vendor Number

IP - Participant:

Click

on

Start

Search

Participants
Select

Select
All

Click on Copy Button


Fiscal Year:

Enter desired fiscal year

Participation Through:

Todays Date and current Year

Note: Fiscal Year Field and Participation Thru fields give the end user the ability to
search plans for a particular year and date and for an overview of all the plans
postings and participation.
Press Execute
Note: The information above displays all participants in one or many deployment
codes for selected year and date without knowing the plans for a criteria search.
You can compare the data for all the participants and sort to check who has
received the highest/lowest postings.

Click in Total Posting Amount Column to highlight Select sort in


ascending order button

This is a great way to compare and contrast the participants performance


in multiple plans.

Collective Tracking for a Single Plan


Collective tracking enables you to track information for several participants
(selected based on user input criteria) simultaneously. This allows the plan
administrator to view results for several participants.
Accrual takes place at the participant level based on the accrual calendar defined
for the deployment code. The financial postings are similar to
transactionalprocessing, in that; an expense and a liability are recorded at the

participant level for every period in the deployment code. Accrual can be initiated
manually or automatically.
Similarly, the settlement process can also be initiated from collective tracking. This
creates the actual receivable from the participant and transfers the data to the
SAP Accounts Receivable module. Settlement can be initiated manually or
automatically according to the settlement calendar specified in the deployment
code.
Collective tracking can be executed in advance and staged for further analysis by
the users. This can happen, for example, in a periodic batch job. The users can
then display the results from the staged data saving valuable processing time
during business hours.
In the SAP/IP Menu choose: CB - Composite Processing Administration and
Tracking /IRM/IPCBCCP CB Composite IP: Collective Process
On the application screen, enter the following information:
Field Name

Entry Value

Deployment Code:

Select the Chargeback plan

Participant:

Select Multiple Vendor Participants with Search


Help

Period:

Select current Month and Year

Press Execute Button


When the Execute Button is selected, the system checks for
participation authorization before displaying data. The data is then displayed for
multiple participants belonging to the same plan.
To navigate from multiple participant transaction to single participant transaction,
highlight Vendor# Select Tracking

Collective Tracking - Views


Under the same transaction /IRM/IPCBCCP for Collective Tracking for a Single
Plan, please review the Application Views:
There are three different views to display the data that is set up
for Chargebacks Plan Select
Fields.

drop down box Select View All

This will display all details about Components, Accrual, and Settlement etc.

Collective Tracking Accounting Postings


Accrual is a process that involves financial postings against a Chargeback
Income Account and a Clearing Account. The financial postings are controlled by
the Debit/Credit indicator at the Participant Level. During Accrual, there is no
physical transfer of funds between the accounts. The accrual process helps the
company to predetermine what its financial position will be when the
Chargeback amount has been received.
In
the
SAP/IP
Menu
choose: CB Composite
Processing Administration
and Tracking /IRM/IPCBCCP-CB Composite IP: Collective Process
Click on

to select All Participants. From the Application Tool Bar , click

on Participants Maintenance

to switch to change mode. From the Main Menu

Bar, Select Edit Accrue Select Post

Note: Postings are allowed only in Collective Tracking and it has to be in a change
mode.

Select Continue Button


Postings

and to see the accounting document Select

Button

Each Accrual for a particular participant will show the accounting document

When you select an Accrual it will show you the accounting


document Double Click on Accounting Document and it shows you
that the chargeback income account was credited while the Clearing
Account was debited for the same amount.

Lets take a look at an example for Accrual and Settlement for PTD and
CPD Plans:

If a plan is set up as Period to Date Plan then all data depends on the
cumulative totals of all previous periods. For the Chargebacks Plan our
agreement is set up that a vendor partner participant gives a percentage of
the purchase back after settlement. Companies can set up any kind of
rules in the agreement according to their business requirements.

Lets take a look at a PTD Postings Example: For Month 1 the administrator
accrues $100 for the total chargeback for that month.

Month 2 the administrator accrues a new amount of $180, the system


reverse accrues the amount from the previous month of $100. Since the
vendor has already paid the chargeback for the first month, he owes only
the remaining amount of $80.00. Thus, the final chargeback amount for
second month is $80.00.

Month three the administrator accrues $250, then it reverse accrues the
old amount of $180. The final chargeback amount will be $70.00.

PTD Plan Postings Example


Accrual
Month
1

Reverse
Accrual

Chargeback
Amount

$100

Month
2

$100

$180

Month
3

$250

-$100

$80

-$180

$70

Note: When Settlement occurs, the Formula Builder looks at the Agreement and
pulls the information before calculation.

If a plan is set up as Current Period plan, then all data depends on the
totals of the current period. Companies can set up any kind of rules in the
agreement according to their business requirements.

Current Period to date Plan is on a month to month accrual and settlement


basis. Each month it will accrue and settle without any reverse accrual for
previous months.
CPD Plan Postings Example
Accrual

Settlement

Chargeback
Amount

Month 1

$1,000

$1,000

$100.00

Month 2

$800

$800

$80.00

Month 3

$700

$700

$70.00

Settlement process can also be initiated from collective tracking. This creates
the actual receivable from the vendor participant and transfers the data to the
SAP Accounts Receivable module. Settlement can be initiated manually or
automatically according to the settlement calendar specified in the deployment
code.
To settle chargebacks for vendor partner participants, from the Application Tool
Bar,
click on Participants Maintenance

to switch to change mode. Highlight all

vendors and from the Main Menu Bar Select Edit Settle and then click on Post
.
Note: Postings are allowed only in Collective Tracking and it has to be in a change
mode.

Composite IP Logs Display


The mass processing can be carried out online or in the background. If the
document processing is done online, then the results will be displayed as a pop
up.

These programs can also be setup to run in background mode using variants. The
system captures certain messages as selected by the user, while the task is being
processed in the background. The message log is saved to the database for
further analysis.
To get the message log number, use the standard SAP transaction for Simple
Job Selection. The Transaction code is SM37.
Enter the selection criteria and execute. This will display the overview of all the
jobs that satisfy the search criteria. Check the job for which message log number
is required and then click on
. This displays the job log. One of the
entries in the job log specifies the message log number.
To view the message log, use the transaction,
CB Composite Processing
Utilities
Composite IP- Logs Display.
The transaction code is /IRM/IPCILOG.
Enter the message log number, if known, or else enter other search criteria and
click on the
(Execute) button.
This will display the message logs that match the search criteria.
To view a particular Message Log, double click on the log. This will show all the
messages as required.

Composite IP Correspondence Trigger Event


Composite IP Correspondence refers to the type of communication used to
communicate with the partner. The decision pertaining to the kind of correspondence
to be used is triggered by the event taking place.
The transaction used to maintain the IP Correspondence Trigger Events is:
CB-Composite Processing
Utilities
Maintain Composite IP Corr
Triggers
The transaction code is /IRM/0IPG26.
The different fields are:
IP Doc Category: This represents the function for which correspondence is sent
to Participant.
Deployment Code: is the plan that the correspondence is about.
IP Type: This specifies the IP application for which correspondence is being
used.
IP - Participant: This field allows one to specify a particular partner for the
process. If all partners of the type specified in Partner Role are to be selected
then a "*" is placed in this column.
Correspondence: This specifies the type of correspondence to be used when all
the above criteria are satisfied.
Medium: This specifies the Message Transmission medium. The output may be
printed or sent by other means such as Fax, electronic mail or Electronic Data
Interchange (EDI).

Individual creation of Chargeback Documents


To create individual Chargeback Documents, the Chargeback Workbench is used.
To access the Chargebacks Workbench, choose Chargebacks Workbench from
the SAP user menu.

The transaction code is /IRM/IPCBM.


Follow the procedure to create a chargeback document using the workbench:
From the CB Workbench, select the
(Search) button on the toolbar of the
bottom left grid.
Depending on your selection of the Source Document, a selection screen for
billing or sales documents is presented. Enter the search criteria for the source
document and then click on
(Execute). The search can also be based on
the Header, Item or Partner data of the source document by clicking on
the
button.
The selected source documents are shown in the bottom left grid.
Click on the

button to switch to change mode.

Select the source documents one at a time and click on the


(Execute)
button of the toolbar the bottom left grid and select the Create option.
In the IP Type selection screen, choose Chargebacks and click on
.
Note: For any of the selection criteria, if it is possible to exclude values within a
range, include values not belonging to a range, or to search for more than one
category. Click on the
button to enter complex selection criteria to
obtain several possibilities.
A Chargeback Document is created for every vendor for one or more items.
The Chargeback documents created are shown below the source documents in
the bottom grid.
Any subsequent processes can be made to these Chargeback Documents one at a
time using the Chargeback Workbench.

Collective creation of Chargeback Documents


To create Chargeback Documents in a collective manner, the Chargeback Mass
Processing transactions are used.
The Chargeback Document can be collectively created from a range of Billing
Documents or Sales Orders.
The transaction to create the chargeback documents from the source documents
can be accessed by using the menu path
CB
Mass Processing
IP-Chargebacks-Billing Mass Process (Billing
Source Documents)
The transaction code is /IRM/IPCB21.
OR
CB
Mass Processing
IP-Chargebacks-Sales Mass Process (Sales
Source Documents)
The transaction code is /IRM/IPCB22.
Follow the procedure to create a chargeback document using Mass processing:
In the selection screen, enter the range of the Source Document and other
criteria for the source document.
Check Docindex if the table is to be used as a search criterion.

Choose the function as Create. Also, it is possible to accrue these documents at


the same time by checking Accrue.
In the IP Type selection, choose Chargebacks.
The Commit Frequency specifies the number of source documents that will be
processed at a time to create Chargeback Documents.
These programs can be setup to run in background mode using variants. Select
the kind of messages you want the system to capture while the task is being
processed in the background. The message log is saved to the database for
further analysis.
Click on

(Execute). The search can also be based on the Header, Item or

Partner data of the source document by clicking on the

button.

Note: For any of the selection criteria, if it is possible to exclude values within a
range, include values not belonging to a range, or to search for more than one
category. Click on the
obtain several possibilities.

button to enter

complex

selection

criteria to

Creating a Chargeback Document


Chargeback Documents can be created in two ways:
Individually using the Chargebacks Workbench or
Collectively using Mass Processing
Chargeback Documents can be created using one of the two source documents,
Sales Order or Billing Documents. The Chargeback document thus created has all
the information required for a chargeback process and has a life cycle of its own.