Trade Claims Management: Full Approval E2E

• Purpose of this module

• The purpose is to demonstrate the Trade Claims Process End to
End in case of a Full approval of a claim

• At the end of this module you will be able to:

• Complete an E2E throughout three cross areas: Finance , Sales
and Settlement to see how a deduction claim flows from its
creation to its closure

• This module will not cover:

• The specific scenarios as it is a generic one for you to fully grasp
the E2E process
• Other scenarios will be explained in the next modules

2 30.12.2019
 I’m Lucy, I am responsible
to coordinate the process
I’m Daniel, I’m and ensure dispute cases
responsible to approve are updated with relevant
or reject trade claims information and resolved
deductions and to match in a timely manner.
them to trade activities

Daniel Lucy
Customer Manager I also perform Customer Finance Services
Service tasks, I manage
As a customer, I the document settlements
appreciate the fact that from CRM to be released
Daniel is quickly to accounting*
processing my
deductions or invoices.

* Note that we will distinguish the two

roles in the training since they are
part of distinctive cross-areas

Mr Jones
The Customer

3 30.12.2019
 Customer Management
• Full ownership of trade agreements
• Only valid claims versus agreements are
approved

Financial Services
• Clear view of dispute case ownership
• Easier flow and exchanges with customer
manager
• Manual creation of document settlement no
longer needed

4 30.12.2019
5 30.12.2019
6 30.12.2019
7 30.12.2019
Financial Services Customer Manager Financial Services

• Creates dispute • Approves by linking • Releases to

case in Dispute to trade activity(ies) accounting the
Management or reject the claim credit memo
module • Prevents automatically
• Assigns to unauthorized created
customer deductions and
managers for unjustified claims
resolution based with good planning
based on & preparation
responsibility
matrix1
• Is responsible for
the dispute case
lifecycle
1 Shows which Customer Manager is responsible for which Customer and Product Category

8 30.12.2019
The process involves different stakeholders and it is crucial to see who
owns the dispute case or the claimed amount at every step. Steps are as
follow:
• The Customer Manager has negotiated specific pricing conditions
with the customer (either for short term activities or as part of annual
deals). These conditions have been defined through the creation of
trade activities.
• At one point the customer is claiming for the money either by
deducting it from our invoice or by sending is own invoice.
• The Financial Services person creates a dispute case with the
claimed amount and assigns to Customer Manager for resolution
• The Customer Manager validates that the claimed amount is related
to agreed conditions, maps it the corresponding trade activities and
approves.
• This generates an automatic settlement for customer service to be
released to accounting.
• Finally, Financial Services can close the dispute case against the
accounting document

9 30-Dec-19
10 30.12.2019
11 30-Dec-19
 1

5 2
Lucy
Lucy Finance Services
Finance Services

4 3

Lucy Daniel
Finance Services Customer Manager
13 30.12.2019
We will split the demo in three major steps. We will demonstrate a
deduction claim and will highlight the steps that are different for
invoice claim. Let’s begin with Lucy:

Receive the Create a Update Assign it to

invoice from dispute relevant Daniel*
customer case information

*according to assignment matrix

(customer manager, product
category, customer)
14 30-Dec-19
The dispute case can be created

• For both deduction and invoice claims

• Manually by the responsible team in the market (ex: Accounts
Receivable /Accounts Payable)
• Manually by a third part provider (ex: HP)

• In case of a deduction claim

• Automatically based on the open items using the dispute case
creation program

15 30.12.2019
16 30.12.2019
17 30.12.2019
18 30.12.2019
19 30.12.2019
20 30.12.2019
 A batch job will be run
every night to transfer
all the dispute cases in
‘Ready for review’
.

21 30.12.2019
22 30.12.2019
 z

23 30.12.2019
We are now in TCM (Trade Claim Management module). Daniel just
received an email notification or displays “My Open Claims” to
access the claims that need to be reviewed

Approve the
Review My Review claim claim by
Open Claims request assigning Trade
Activity(-ies)

24 30.12.2019
 “MyMyOpen
openClaims”
claims contains all the
displays the
claims that need to be reviewed

25 30.12.2019
26 30.12.2019
27 30.12.2019
28 30.12.2019
29 30.12.2019
 In order to resolve the claim, I
have to link the relevant Trade
Activity(-ies) as per the
agreement with the customer

30 30.12.2019
 The R/3 Accrual Balance is the financial
ThePending
The Reserved Amount
accrual
Amount is
balance
is what
the I have in
remaining
The Available Accrual Balance is my financial
terms of funds
amount allocated
to be approved to this TA
accrual balance less anything I would have
already approved today. This is what is really
available

31 30.12.2019
 What if I don’t have
enough accruals?

Daniel If overpayment is allowed

Customer Manager
(e.g. for prepayments) you
will be able to validate your
claim as long as you have
enough available funds. If
overpayment is not allowed
you have to change the
trade activity (to ensure
funds are properly updated) Lucy
Finance Services

36 30.12.2019
 What if I don’t have enough
funds reserved allocated to
my Trade Activity?

Daniel
Customer Manager
You will still be able to
process as long as there are
enough total funds available
in the pot (normally at
customer & category level).
Available funds will then be
reduced by the portion of the
claimed amount exceeding Maria
Sales Controller
the reserved amount

37 30.12.2019
 What if I don’t have enough
funds in my pot (for the
corresponding planning
customer and product
category level) ?

Daniel You first have to look for ways to

Customer Manager release money in your fund, either by
changing/cancelling future activities
or closing older activities to release
non consumed money.
If not possible you need to follow the
fund issue escalation process defined
in your business. With your Sales
Manager approval I’ll be able to Maria
increase your available funds Sales Controller

38 30.12.2019
39 30.12.2019
 The approval of my claim automatically
triggers the settlement document
(credit memo).

Lucy will have release it accounting so

that my customer can be paid or that
the deduction can be cleared

40 30.12.2019
41 30.12.2019
The credit memo is automatically created once the customer
manager approves the claim, the Financial Service team needs to
review the credit memo, update if relevant (e.g. if tax amounts need
to be adjusted) and release it to accounting.

Review Release it
Update if
credit to
relevant
memo accounting

42 30.12.2019
43 30.12.2019
44 30.12.2019
45 30.12.2019
 I have released the credit memo to
accounting so it is now back to Dispute
Management

I will execute the clearing by

matching the accounting
document against the dispute
case open item. Once the
dispute case amount is cleared,
I will be able to close the
dispute case.

46 30.12.2019
Back to Dispute Management

Perform the
clearing of Close dispute
the dispute case
case

47 30-Dec-19
 The dispute case ID will be
updated in the Assignment field.
This will allow me to clear more
easily the dispute case. This will
be process via a batch job

48 30-Dec-19
49 30.12.2019
50 30-Dec-19
51 30-Dec-19
 In “My Open Claims” I can see that the
dispute case is closed. The closure of
My open
the case claims
in TCM displays the be
will automatically
done once Lucy closes the
corresponding dispute Case

52 30.12.2019
 After what I assigned
Trade Activitiy (-ies) and
I then looked at my
approved the claimed
open claims
amount
Which automatically
created a credit memo
in Customer Service

After updating the credit

memo, I released the
accounting document

Where I matched the

document to the dispute
case open item and
I firstly looked at the closed the dispute case
dispute cases to be
processed and send
them to Daniel

53 30.12.2019
 I appreciate the fact that Nestlé is quickly processing my
deductions or invoices. Thanks to Daniel proactivity in
defining and managing our agreed deals we have less
issues and we can focus in developing business together.
These are the basis for successful long term relationship.

We are able to perform tasks seamlessly and

Mr Jones benefit from an integrated process, which brings
The Customer more transparency and visibility on what is going on
and who is responsible at each step

54 30.12.2019
 Feel free to ask questions or for information

55 30.12.2019