Agenda:

Day 1: Vistex Overview

Day 2: IP Module and configuration
Day 3: Pricing Process and Questions

Vistex Overview:
About Vistex
Vistex was founded in 1999 to meet a marketplace need for software solutions
that utilize data-driven sales and marketing programs to drive consumer behavior,
control costs and enhance corporate profitability.
Vistex is the pioneer and global leader of the Go-to-Market Suite of solutions,
which offers distinct processes that manage pricing, incentive, rebate, royalty and
channel programs across 13 unique industries. 
Vistex is headquartered just outside Chicago in Hoffman Estates, Ill., with offices
around the globe including Germany, UK, Poland, India, Singapore, Brazil,
Colombia and South Africa.

What is Vistex?
Vistex offers a number of innovative embedded solution extensions for SAP
software and embedded natively into core ERP.Organizations that utilize SAP
software make use of Vistex for their business, Vistex has a proven solution that
leverages the investment.  

 Vistex is a third-party tool developed by Vistex Inc.  which was founded in

early 1999 and headquartered in Chicago, USA. Vistex solutions have been
developed to cater special business needs based on different Industry.
  It is an embedded SAP Add-On; it is NOT an external application. In other
words, it sits on top of ECC itself and which means there is no system
interface development (ECC-Vistex). It has a different set of objects and
tables.

 It is best suited to handle complex calculation like processing rebates, sales

commissions, Bill backs, chargeback and Price deals in ECC and Incentives
and Paybacks (IP) Module have been branded as Global Solution Extension
Product by SAP, licensed and supported by SAP through the SAP Service
Marketplace since mid-2004.

Advantage:
 An add-on component and not an interface but sits on ERP, No additional
hardware cost involved like Middleware componenets etc.,
 Uses all SAP standard tables and SAP Database
 Offers better customizing business requirements
 Provides unprecedented visibility into the breadth and depth of go-to-
market programs and enabling businesses with insightful information that
drive revenue, control costs and increase margins.
 Streamline maintenance of master data that drive business transactions
 Serving businesses of all sizes worldwide across a spectrum of industries
 Transparent Accounting and Pre-defined Agreement based claims and
settlements
 Offer future rebate price maintenance unlike standard SAP SD Rebate
 Customized reports for reconciliation and payments for all IP Modules
Vistex Overview and Architecture

Vistex provides valuable solutions to organization that operates in one of the

following sectors:
 Wholesale Distribution
 Consumer and Commercial Products
 Pharmaceutical and Medical Devices
 Industrial Machinery and Components
 High Tech and Electronics
 Process Manufacturing
 Retail
Landscape Overview with Integration of ECC and Vistex:

Vistex Modules:
 IP Module: Incentives and Paybacks calculation

 Pricing: Same Condition Types/Condition Tables/Access sequence similar to

standard SAP Pricing (KOMP and KOMK)

 Data Maintenance: Product, Customer and Vendor data is maintained

using DM module. Massprocessing of data is also available.
Vistex IP Module: Incentives and Paybacks Module from Vistex

1. Sales Rebate
2. Purchase Rebate
3. Sales Commission/Incentives
4. Billback
5. Chargeback
1. Sales Rebates(Customer): Sales rebates are refunds or outgoing payments
made to customers, channel partners and or group purchasing organizations for
various reasons such as volume sales commitments, loyalty and revenue growth
as agreed upon by the company and the customer or channel partner.

 Full lifecycle support for plan creation, participation, quotas, actuals,

tracking, accrual, and settlement
  Flexible, accurate, and auditable plan administration
 Ability to handle tiered and retroactive rebates
 Accurate pricing (rebate amount) calculations. Calendars, settlement rules,
and short payments considered during payout calculations. Rebates can be
calculated using external metrics and data.
 Approval process to validate rebate payouts
 Post-settlement dispute adjustments that help reduce dispute handling
costs. Adjustments can be traced back to agreements and partners.
 Significant reductions in manual administrative work
 Employee behavior more aligned to corporate goals (more selling, less
shadow accounting)
 Rules based pay-for-performance
 Instant visibility to performance data
 Efficient and extensive on-demand reporting and analytical capabilities
 Increased sales to customers due to incentives based on attaining purchase
volumes
 Increased transparency due to effective monitoring of all contracts
 Lower Total Cost of Ownership (TCO); lean process supported by standard
documents

2. Purchase Rebates: A Rebate received from a Vendor/manufacturer for all the

purchases made by an organization.
Purchasing rebates are incoming refunds or payments received from a
manufacturer, vendor, or channel partner for various reasons, such as volume
purchasing commitments, loyalty, and purchasing growth as agreed upon
between the manufacturer/vendor/channel partners and purchasing company.
The manufacturer can generate the rebate amount and make the claim from the
Vendor for which a Debit memo gets created.
 Full lifecycle support for plan creation, participation, quotas, actuals,
tracking, accrual, and settlement
 Flexible, accurate, and auditable plan administration
 Ability to handle tiered and retroactive rebates
 Accurate pricing (rebate amount) calculations. Calendars, settlement rules,
and short payments considered during payout calculations. Rebates can be
calculated using external metrics and data.
 Approval process to validate rebate payouts
 Significant reductions in manual administrative work
 Instant visibility to performance data
 Post-settlement dispute adjustments that help reduce dispute handling
costs.
 Reduced turnaround time of the purchasing rebates process
 Efficient and extensive on demand reporting and analytical capabilities
 Increased revenue from wholesalers due to incentives based on attaining
purchase volumes to receive a net lower cost
 Increased transparency due to effective monitoring of all contracts
 Lower Total Cost of Ownership (TCO); lean process supported by standard
documents
3. Sales Commissions/Incentives: Sales person incentive program for target
based sales for sales promotion.

SAP Incentive Administration by Vistex allows you to administer, model, report

and analyze all aspects of even the most complex incentive programs, such as
sales commissions or incentive compensation and bonus plans, sales or
purchasing rebate programs, and royalty payments. Sales Incentives supports the
commission paid to personnel, including internal sales employees and non-
employees such as dealers, distributors, contract sales representatives, and
brokers, who are directly or indirectly responsible for the sale of the company's
product or services.

 Full lifecycle support for plan creation, participation, quotas, actuals,

tracking, accrual, and settlement
 Flexible, accurate and auditable plan administration. Adjust plans/payment
at any point in the process.
 Ability to establish payouts on a predetermined schedule or on receipt of
payment
 Accurate incentive pricing calculations based on enterprise pricing and
user-defined rules and formulas
 Accrual/settlement approval workflows to validate payment amount
 Significant reductions in manual administrative work, delays, and errors
 Employee behavior more aligned to corporate goals (more selling, less
shadow accounting)
  Instant visibility to performance data
 Efficient and extensive on demand reporting and analytical capabilities
 Increased sales since sales employees are given incentives based on goal
attainment or transactional payouts
 Increased transparency due to effective monitoring of all contracts and
potential liabilities
 Lower Total Cost of Ownership (TCO); lean process supported by standard
documents

4. Billbacks: The claims processed and refunded by the manufacturer to the

distributor.

Billbacks occur when a manufacturer negotiates an agreement with a channel

partner or directly with an end customer for special pricing or spending programs.
The product is sold to the end customer through a channel partner or the channel
partner incurs expenses based on the negotiated spending program. The channel
partner files a claim with the manufacturer. The manufacturer audits the claim
and sends a payment to the channel partner. The end customer may also be
eligible for a payment from the manufactures
  Enhanced capability to define complex agreements that contain tiered
pricing, volume commitment definition and monitoring, and tolerance
handling at the item level
 More accurate billback pricing calculations
 Significant reductions in manual administrative work and errors
 Significant reduction in dispute handling costs
 Increased cash flow
 Reduced turnaround time of the billback process, which significantly
improves the Days Sales Outstanding (DSO)
 Additional time for the business to concentrate on reaching business goals
rather than performing manual processes
 Efficient and extensive on demand reporting and analytical capabilities
 Improved profit margin due to effective and transparent agreement
settlement towards the wholesaler
 Increased transparency due to effective monitoring of all condition
contracts
 Lower Total Cost of Ownership (TCO); lean process supported by standard
documents

5. Chargebacks: The claims distributor request back from the manufacturer for
the difference of amount for which the sale was made based on predefined
agreement between Manufacturer and Customer.
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.
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 distributor.

 Accurate chargeback pricing calculations

 Significant reductions in manual administrative work and errors
 Significant reduction in dispute handling costs
 Increased cash flow due to more accurate claim determination and
avoiding missed chargeback opportunities. Less claim errors and faster
claim validation cycle time lowers the risk of deduction for outstanding
claims.
 Reduced turnaround time of the chargeback process
 Increased time for the business to concentrate on reaching business goals
rather than expend their time with cumbersome, manual processes
 Efficient and extensive on demand reporting and analytical capabilities
 Improved profit margin due to effective and transparent agreement
settlement towards the supplier
  Increased transparency due to effective monitoring of all condition
contracts
 Lower Total Cost of Ownership (TCO); lean process supported by standard
documents

Operational Model:
Transactional Model: Single Document based IP calculation
Composite Model: Mass IP processing based on multiple Docs

Source Document used for IP Calculation are as below:

1. Sales Order – SAP SD
2. Claim Request
3. Customer Invoice
4. Purchase Order – SAP MM
 Added later in 2014
5. Transaction Register – Vistex Speicific – A sales transaction report send by
distributor similar to a claim document
6. Business Register: Vistex Specific- Used in US for Life Sciences industry for
government pricing schemes for Medicare facilities and with User Policies

Steps Followed in each IP step:

Vistex IP Workbench: A sample workbench in display

Summary of Day 1:
Vistex Overview and advantages
IP Module and description
Day 2 : IP Module and configuration
Vistex IP Implementation Guide:
/IRM/IPSPRO
IP Process Flowchart:

Vistex Sales Rebate Scenario:

Manufacturer Retailer/Distributor Customer
Creation of a Sales Rebate Document:
Rebate Documents can be created in two ways:
 Individually using the Sales Rebates Workbench or
 Collectively using Mass Processing
 
Tcode:
/IRM/IPCRM

The transaction to create the Sales Rebate documents from the source
documents can be accessed by using the menu path
IP-Sales Rebates-Billing Mass Process (Billing Source Documents)
The transaction code is /IRM/IPCR21.
OR
IP-Sales Rebates-Sales Mass Process (Sales Source Documents)
The transaction code is /IRM/IPCR22.

Rebate Documents can be created using one of the two source documents,

Sales Order or Billing Documents. The rebate document thus created has all
the information required for a rebate payout and has a life cycle of its own.
1. Repricing
2. Accrual
3. Parking
4. Reconciliation
5. Settlement

The Creation of a CR 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 CR document can be
created for every partner role on the source document to whom rebate
has to be paid out.
  Source Document Category and Type - At times, it may be required that
Sales Rebate 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 CR document is

Incoming/Outgoing, i.e. an income/expense and it controls what IP
application this document type belongs to.
 Item Category from Source Documents - Only certain items from the
source documents may be eligible for inclusion in the CR document. This
is controlled by the item categories in the source document in
conjunction with the IP Type i.e., Sales Rebates.

Accrual and settlement of a sales rebate document are controlled using the
following profiles maintained in configuration:

 Accrual Profile

The accrual profile controls how the income/expense is posted, as well as

the FI document type and posting keys used during the accrual. It is also
important to specify a clearing account to record the income/expense to
until the sales rebate document is settled.

 Settlement Profile

The settlement profile controls whether the actual settlement takes place
as Accounts Payable or Account Receivable and the FI document type used
during settlement.

 Payment Schedule Profile

The payment schedule profile controls the predefined events upon which
the payment schedule is updated. The predefined events are the sales
order creation date, invoice creation date, and payment date.
Steps for Vistex Configuration is as below
Step 1: Define the Number Range
Step 2: Define Sales Deal Type
Step 3: Assign Number to Sales Deal
Step 4: Define condition table for agreement type(Rules)
Step 5: Define the Access Sequence
Step 6: Condition Type
Step 7: Condition Group Type
Stpe 8: Create Status Profile(Define/Assign profile)
Step 9: Assign Status Profile to IP Agreement – Map user Status to System
Status
Step 10: Define Agreement Type for Sales Rebate( Or any IP document)
Step 11: Assign Agreement type to Condition type group
Step 12: Define IP Type
Step 13: Define Pricing procedure for IP Document type
Step 14: Define Accrual Profile
Step 15: Define Settlement Profile
Step 16: Define Header Condition
Step 17: Define Item Category for IP Doc Type
Step 18: Create Agreement
Step 19: IP Document Type(Batch Job)

Step 1: Define agreement type

/IRM/IPSPRO -> Basic Fns->Pricing Sales->Pricing agreements-> Setup
agreements->Define agreement. Then select define sales deal type

Step 2: Add created agreement type to chargeback's setup

/IRM/IPSPRO -> Basic Fns->Pricing Sales->Pricing agreements-> Maintain IP
agreement types-Sales
   Then select Maintain Agreement Types for Sales Rebate / 1
  - New entries
        -in Agreement type F4 help select agreement type created in step-1
        -Fill other details that you want (Don't forget to mark new pricing check box
available @ agreement type level)

Step 3: Adding Rules to agreement type

 /IRM/IPSPRO -> Basic Fns->Pricing Sales->Pricing agreements-> Setup
agreements->Condition Type groups
 Here we need to create set of price sheets ( KSCHL + KOTABNR) that we want to
show in our agreement as a condition type group so first create a condition type
group using define condition type groups, then assign condition types/tables to
condition type groups
them assign this type group to agreement type that we created in step-1

Step 4: Use /IRM/IPCRASP T-code to create new agreement of type that we

created in step 1

Steps for Creating an Agreement:

An agreement defines the terms and conditions of a contract between two or
more parties.

1. Access transaction /IRM/IPCRASP.

 2. Click on the   Create button to display the Create Agreement dialog
window. Alternately, from the menu bar select Agreement → Create.
3. In the Create Agreement dialog window, make one selection from the
Agreement Type dropdown menu.
4. Enter data in all required fields. Values may default into certain fields,
depending on configuration.
5. Click on   to return the data screen for the new agreement.
6. To add rules, select one of the following tabs:

 Rules Overview - Find the rule you require and click on its link in the Alias
column. The chosen rule is then displayed on the Rules tab.
 Rules - Select the price sheet from the list in the Current Sheet field.
Add lines to the condition records by selecting the   Create button.
Click on the Create button to add one, five and/or ten condition records.
For example, adding three condition records can be accomplished in the
following ways:
 Click on the Create button and select 1 from the dropdown three
times.
 Click on the Create button, select 5 from the dropdown, highlight two
of the five new records, click on the Delete button, and then select
Delete from the dropdown.
 Click on the Create button, select 10 from the dropdown, highlight
seven of the ten new records, click on the Delete button, and then
select Delete from the dropdown.
7. Click on the   Check and Complete button to validate the condition
record(s) you created.

7. Save the agreement. The system will assign an agreement number for the
New Agreement created.

Comparing Two Agreements

1. Access transaction /IRM/IPCRASP.

 2. In the Search and Worklist, perform a search or display your worklist. Select
two agreements to compare.
3. On the Search and Worklist toolbar, click on the   Compare Agreements
button.

The agreements will appear side-by-side in a viewing pane. Each side of the
pane has scrolling capabilities and each section can be expanded or
collapsed.
4. Click on the Back button to exit the view.

Extending Multiple Agreements

You can use Mass Change to either:

 Extend existing agreements to new dates.
 Create new agreements with new dates.
 Create requests to extend dates on existing agreements.
 Create requests for new agreements with new dates.

1. Access transaction /IRM/IPCRASP.

2. In the Search and Worklist, perform a search or display your worklist. In the
grid, select the agreements to be changed.
3. Click on the   Display ↔ Change button to activate Change mode.
4. Click on the   Mass Change button to display a dropdown menu.
5. Select the Header Data option to display the Mass Change Agreement
dialog window.
6. Enter the renewal dates.

Use the Reset flag to set the value to null or blank.

NOTE: You must use Mass Change to change the Valid From/Valid To
values, even if for one agreement; there is no manual way to update these
fields.
7. Click on   to make the changes, or click on the Save as Request button to
save the changes as an agreement request.