Vistex Contract Overview

Vistex Contract Overview /IRM/PCMS

Vistex Introduction

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The sheer complexity of managing and administering life sciences contracts makes it prone to revenue leakage.

Business processes are typically managed by stand alone systems resulting in issues of data integrity.

The large volume of transactions, especially with managed care organizations overwhelms stand alone and departmental systems.

Establishing a full audit trail from initiation to payment to support accounting and compliance efforts is an absolute necessity and no longer a luxury.

Industry Challenges


Introduce efficiencies in management and administration of complex contracts and settlements.

Reduce erroneous payouts.

Ensure full compliance with regulation and periodic audits.

Automate claims and payouts reducing administrative costs.

Improve your profitability and competitive advantage.

Benefits of Vistex Solution


Integrated Contract Life-Cycle Management


Using rule-based concepts in conjunction with standard pricing techniques, Vistex software simplifies the process for developing and managing contracts.

The solution enables rules to be defined to filter member eligibility on contracts, along with supported pricing programs and performance rebate types.

Standard contract templates are available to make contract development efficient, fast, and easy. And you can manage all types of rebates – from simple market share or growth measurements to elaborate, matrix-style conditions – as well as handle fixed or tiered pricing.

You can also capture data for contract analysis, provide enterprise pricing capabilities, and communicate in various formats, including a standardized link to electronic data interchange (EDI) transactions for outbound bid-award notifications.

Contract Development and Administration


• Tier Contract: Pharma industries or customer segments may have a

common set of terms and conditions that are applicable to all contracts that are created for customers in those industries or segments. A Tier contract that contains this common set of terms and conditions. This creates a contract that has GPO linked to it with all terms and condition.

• Individual Contract: Individual Contract means the contract which is

done between Customer and the manufacture/supplier of the product, no other party in involved in the same.

• Base Contract: Base Contract is the one which is associated to set of

customer who is member of a buying group where as Tier contract is attached with buying groups organization. All other features of Base Contract is same as Tier Contract.

Contract Types


Contract Screen General Tab


Contract Screen Customer Tab


Contract Screen Products Tab


Group Purchase Organization is logical body which bring group of customer together and involved the negotiation with vendors. This way small customer can get benefited of negotiated price. GPO do change membership fee from customers to avail the benefit.

Group Purchase Organization (GPO)

Buying Group is logical grouping of Related Materials/Group of Customers which can be assign to a Contract. Buying Group is a subset of GPO.

Buying Group


With the group membership feature of the Vistex software, you can manage the complex business relationships between contract organizations and affiliated clients and plans.

The application maintains an exact copy of your customer’s membership list and automatically matches it to your customer database according to external cross-references.

Data collected from your customers’ files, third-party data providers, or EDI transactions are loaded through applications that are integrated with customer master data.

Because you establish filters, policies, and participation rules to control contract participation, the software can automatically determine contract or member eligibility, updating contracts without manual intervention.

Group Membership


Membership/Block Maintenance Screen


Buying Group assignment to Contract


Sample Process Flow START

SAP receives Supplier Notifications from Vendors

in the form of EDI 845 IDOC

SAP validates the received

data by applying various

matching logic and Business

rule. Is matching record

found?

Supplier notification is created/ updated upon

successfully processing of the IDOC

Business or Contract analyst will analyze the data

and associate the Supplier Notification with

Base/Individual/Tier Contract

Record captured as

Exception

No

YES


Once the Supplier Notification Information is updated, a batch job

is scheduled to run, which will update all associated contracts

(Base, Tier and Individual) with member and product information

SAP validates the received

data by applying various

business rules. Is data good to

process?

All associated contracts is updated with product and member

information received from the supplier

END

Record captured as

Exception

No

YES


Sample Exception Processing Flow

Get the list of records captured as Exception

Business or Contract analyst will analyze the data

Business is fine with

the exception and want

to process the data ?

Process the data manually by clicking the Process Button and System

will update all the contracts accorondingly

Delete or ignore the data

by marking it Processed

START

END

Yes

No

System will process the Exception automatically in case Same Contract,

Same Product with Same Exception occurs next time.


Contract Activation

Contract Activation is standard Vistex process which will move all the

active records on a particular date from staging tables to active tables.

History and Future records will not be moved.

Contract should be marked as Priced to move to active area.

Contract should be Released to move to active area.

Batch job is scheduled to run the activation at required frequency.


Contract Best Price Logic

We can have multiple Group / Individual / Tier Contract in contracts

master data for a given Customer and Material combination on a given pricing date.

Customer should always be charged with the best/lowest available

price among all the available contracts. Logic to determine the best possible price to the customer is called

the BEST PRICE LOGIC.


Check Contract with all the buying group associated for the customer

Exclude Contract based on various blocks

Check the customer validity dates in Tier and Individual Contract

Check the Material with validity dates exist in the contracts selected in above steps

Eliminate contracts where customers are excluded as well as products do not have valid contract price and or sell price



Apply contract sequences and use exit flag till contract price found

In case we do not find any Exit flag then consider all contracts that

are captured so far

Contract have both contract price & sell price available, then sell price will be used.

Marks ups/downs are applied to contract price i.e Vendor, Dropship, Contract Override etc

Select best contract price (Lowest Price) among various contracts



There are 3 different ways to upload contract information to SAP

Vistex system, which are as follows:

Manual Upload via Tcode /IRM/PCMS

File Upload

Inbound Contract Update (EDI 845) Upload

Contract Data Upload


The SAP Vistex system have the capability to Create/Edit/Delete the contract manually.

Transaction code (/IRM/PCMS) to trigger contract creation.

Once the transaction code is entered a selection screen appears. User needs to select the create button (F5), and then select the type of the contract and provide all other details

Manual File Upload


The SAP Vistex system have the capability to upload the Excel or text files provided by External or Internal Parties.

Custom Transaction code can be used.

Separate Batch jobs can be scheduled to upload external and internal party files.

Every file has a specific format in which it can be created and uploaded

File Upload


Majority of the Supplier Notifications (EDI 845) received from the manufactures are through EDI. There are several steps in Vistex to identify these supplier notifications and create/change these notifications.

Supplier notification is/are created/updated upon successfully processing of the IDOC.

Business or Contract analyst will analyze the data and associate the Supplier Notification with Base/Individual/Tier Contract.

Inbound Contract Create/Update (EDI 845)


T-Codes /irm/pcms – To Add/Edit/Display Contract /irm/pcsgmblk – To Add/Edi/Display Membership and Block /irm/pcactv – To Activate a contract /irm/pcmdactv – To activate a membership and Block Tables /irm/pcshdr – Header Table /irm/pcscus – Detail Table for customer information in contract /irm/pcsprd – Detail Table for product information in contract /irm/pcsbgp – Header Table for Membership /irm/pcsbgc – Detail Table for Membership /irm/pcsblk – Detail Table for Blocks BADI /IRM/BADI_PC_ALL

Common T-Codes, Tables & BADI


Vistex Contract Overview

Technology

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