VISTEX

Using SAP®

Solution Extensions by Vistex

to Boost Profitability

SAP® Incentive Administration by Vistex

SAP® Paybacks and Chargebacks by Vistex

SAP® Data Maintenance for ERP by Vistex

Larry Buchman

Director of Business Development

Vistex, Inc.

SAP Insider WebcastPaul Hoock 28 October 2009Business Technology Analyst

Graybar

Tony Muscarella

Sr. Business Technology Analyst

Graybar

Agenda

Solution(s) for Chargeback Claims, Rebates and Sales Commissions

Q&A

Introduction

Solution for Pricing Master Data Maintenance

© SAP 2008 /

Boosting profitability…

Increasing Revenues

Decreasing Operating Costs

Managing Prices and Margins

Making It Easier to Do Business With

Improving Trust between Trading Partners

Preventing Profit Leakage

…using SAP Solution Extensions by Vistex

SAP® Incentives Administration by Vistex

• Sales Commissions, Broker Fees, Royalty Payments, etc.

• Performance-Based (Volume and/or Growth) Sales Rebates

• Performance-Based (Volume and/or Growth) Purchasing Rebates

SAP® Paybacks and Chargebacks by Vistex

• Complex Pricing/Rebate Contract and Trading Organization Member Eligibility Management

• Payback (aka Billback) Claims Management (manufacturers)

• Chargeback Claims Management (wholesale distributors)

SAP® Data Maintenance for ERP by Vistex

Pricing

• Pricing Condition Master Data

• Pricing Simulation & Analysis

• Price Books

Resources

• Material/Product Master Data

• Customer Master Data (including Customer Info Records)

• Vendor Master Data (including Vendor Info Records)

© SAP 2007 /

Where do these solutions fit in your business?

Inquiry

to

Cash

Financial, Operations & Human Capital

Management

Source

To

Pay

Customer

Relationship

Management

Business

Intelligence,

Planning

&

Analytics

Revenue Processes

Spend Processes

Administrative ProcessesMaster

Data

Management

Supplier

Relationship

Management

Supply

Chain

Management

SAP Business Suite

SAP ERP

© SAP 2007 /


Inquiry

to

Cash


Management

Source

To

Pay

Indirect

Sales

Reporting

&

Claims

Performance-

Based

Incentives

&

Rebates

Sales

Agreements,

Contracts

&

Promotions

Purchasing

Agreements,

Contracts

&

Promotions

Claims

Performance-

Based

Incentives

&

Rebates

Customer

Relationship

Management

Business

Intelligence,

Planning

&

Analytics

Revenue Processes

Spend Processes


Data

Management

Supplier

Relationship

Management

Supply

Chain

Management

SAP Business Suite

SAP ERP

© SAP 2007 /


Inquiry

to

Cash


Management

Source

To

Pay

Indirect

Sales

Reporting

&

Claims

Performance-

Based

Incentives

&

Rebates

Sales

Agreements,

Contracts

&

Promotions

Data

Maintenance

Pricing

Data

Maintenance

Resource

Management

Purchasing

Agreements,

Contracts

&

Promotions

Claims

Performance-

Based

Incentives

&

Rebates

Customer

Relationship

Management

Business

Intelligence,

Planning

&

Analytics

Revenue Processes

Spend Processes


Data

Management

Supplier

Relationship

Management

Supply

Chain

Management

SAP Business Suite

SAP ERP

Purchases product for resale / pays WAC

© SAP 2008 / Page 9

Processes supported from a manufacturer’s

perspective

Customer

Wholesale

Distributor

Sells at mfr-negotiated price …

also performs marketing /

activity(ies) for mfr

GPO or

Customer

Parent / HQ

Negotiates prices &

administrative fees

End User, Consumer Manufacturer

Negotiates special prices

Sales Rep,

Broker, Dealer

Secures orders for Mfr

Pricing Agreement

Purchases product / pays distributor

the manufacturer-negotiated contract price

Joins Group Purchasing Org.

Submits SPA/ship-and-debit

and/or marketing event claim(s)

Issues SPA/ship-and-debit

&/or mktg event credit/pymnt

Special Price Authorization,

Deviated Billing, Ship-and-

Debit Claims

© SAP 2008 / Page 10


perspective

Customer

Wholesale

Distributor




GPO or

Customer

Parent / HQ

Negotiates prices &

administrative fees



Sales Rep,

Broker, Dealer


Marketing/Development Cost

Reimbursement Agreement





&/or mktg event credit/pymnt Marketing / Development Event

Claims


© SAP 2008 / Page 11


perspective

Customer

Wholesale

Distributor




GPO or

Customer

Parent / HQ

Negotiates prices &

administrative fees



Sales Rep,

Broker, Dealer


Rebate Agreement




Submits indirect sell-thru data

Issues Rebate Credit or Payment

Issues Rebate Payment

Performance-Based (Volume

and/or Growth) Rebate-Type

Incentives

© SAP 2008 / Page 12


perspective

Customer

Wholesale

Distributor




GPO or

Customer

Parent / HQ

Negotiates prices &

administrative fees



Sales Rep,

Broker, Dealer






Compensation Agreement

Sales Incentive

Pays Sales Commission

and/or Bonus

Sales Commissions and

Bonuses


© SAP 2008 / Page 13


perspective

Customer

Wholesale

Distributor




GPO or

Customer

Parent / HQ

Negotiates prices &

administrative fees



Sales Rep,

Broker, Dealer


Pricing Agreement

Rebate Agreement












Issues Rebate Payment


Sales Incentive


and/or Bonus

Special Price Authorization,

Deviated Billing, Ship-and-

Debit Claims

Sales Commissions and

Bonuses

Performance-Based (Volume

and/or Growth) Rebate-Type

Incentives

Marketing / Development Event

Claims

Special Price Authorization, Deviated

Billing, Ship-and-Debit Claims

© SAP 2007 / Page 14

Customer

Wholesale

Distributor


also performs marketing


GPO or

Customer

Parent / HQ

Negotiates prices &

administrative fees



Processes supported from a distributor’s

perspective

Sales Rep

Secure orders for WD

Pricing Agreement



Rebate Agreement

Rebate Agreement

Sales Incentive


Issues Rebate

Credit or Payment

Purchases product / pays manufacturer-

negotiated contract price

Joins Group Purchasing Organization








and/or Bonus

Sales Commissions and Bonuses

Performance-Based (Volume and/or

Growth) Rebate-Type Incentives

Marketing / Development Event Claims

© SAP 2008 / Page 15

Key features

Common Features

Full contract/agreement lifecycle support

“What-if” simulation/modeling capabilities

Web Portal access

Integration w/ SAP master & trans data

Integration with SAP Workflow

Real-time financial postings to FI/CO for

expected accruals, actual accruals, settlements,

and adjustments

IP documents have their own lifecycle,

independent of the sales/billing documents from

which they were created

Leverages SAP role-based security

authorizations, full forward/backward document

flow audit trails, etc.

Can “push” or “pull” reporting in email, .PDF,

and/or .HTML output formats

Ad Hoc Report Tool

Data extractors to SAP NetWeaver Business

Warehouse

User/Administrator Workbench

SAP Incentive Administration Features

Incentives/rebates can be transactional and/or

performance-oriented (percent of goal achievement),

based upon revenue, margin, growth, etc.

Integration with SAP CRM territory management and

HR organizational structures

Integration with BW/SEM and/or BI/BPS

SAP Paybacks & Chargebacks Features

Support of EDI (844, 845, and 849), flat files, and/or

manual entry for claims

Automatic adjustment within user-defined tolerance

limits

Complex pricing contract management – IP

agreements’ condition records can be used by SD

pricing procedures as well

Trading organization member eligibility mgmt

Integration w/ CRM trade promotion planning

Trade spend funds management

Retroactive chargeback cost recovery

© SAP 2008 / Page 16

Seamless end-to-end solutions

Review History and

Hypothesis

Detailed Analysis

and Presentation

Create

Sales

Order

Invoice

Customer

Rebate

Document

Calculation

Adjustments

for Rules and

Participation

Changes

Tracking

and Accrual

of Rebate

Results

Payout to

Participant

Model and

Create Rebate

Plan Plan Deployment

Continuous Feedback

and Monitoring

Comprehensive

Financial Postings

Load

Participation

and Targets

Sales Volume/Performance-Based Rebates

SAP Standard ERP

Functionality

SAP Incentive Administration &

Paybacks and Chargebacks

© SAP 2008 / Page 17

Introducing:

SAP®

Data Maintenance for ERP by Vistex

These SAP applications provide an intuitive user interface and

mass change tools to facilitate master data maintenance within an SAP ERP system

Pricing

Incentives

Sales commissions and other incentives such as

brokerage fees and royalties paid out to employees

and/or channel partners

Sales volume & performance rebates

Outgoing payments to customers, channel partners

and/or group purchasing organizations for volume

commitments and revenue growth

Purchasing volume & performance rebates

Incoming payments from suppliers for volume

commitments and spend growth

Pricing Data

Profile-based and/or index-based price maintenance

Utilize Workflow to review / approve price changes

Enhance pricing for contracts and other incentive

agreements

Price Simulation & Price Book Generation

Evaluate price changes before release

Generate Price Books for the Field

Pricing Analytics

Price Cascade & Margin Leakage Analysis

Historical Insights

Quick synopsis of pricing procedures, condition types

and access sequences

Materials, Customers and Vendors

User-driven, business-friendly based upon flexible

attributes

Incorporate company and/or industry-specific data

attributes without technical development

Transformation and validation rules

Rapid execution of mass changes

Info Records

Customer / vendor-specific data for a product can be

defined and linked to Info Records in SD / MM

Resources

SAP Data Maintenance addresses your ERP master

data maintenance challenges & pain points

Usability

Facilitates efficient maintenance of pricing, material, customer and vendor records with

a powerful, intuitive user interface to manipulate master data and automate mass

updates

Empowers business users to take ownership with an all-in-one data view to maintain their master data without having to navigate multiple screens and transactions

Complements SAP Master Data Management (SAP MDM) to serve as the data exchange front-end



Usability



updates



Flexibility

Allows flexible depiction of Material, Customer and Vendor hierarchies and relationships

Enables business users to incorporate additional company- and/or industry-specific data

attributes without requiring technical development or modifications



Usability



updates



Flexibility


Enables business users to incorporate additional company- and/or industry-specific data

attributes without requiring technical development or modifications

Speed and Visibility

Provides rapid execution of mass changes instead of iterative and time-consuming

processes to get data updated

Allows future values since pricing, material, customer and vendor master data attributes

are time-based (stored with an effective date)



Usability

Facilitates efficient maintenance of pricing, material, customer and vendor records with a powerful,

intuitive user interface to manipulate master data and automate mass updates


Complements SAP MDM to serve as the data exchange front-end

Flexibility


Enables business users to incorporate additional company- and/or industry-specific data attributes

without requiring technical development or modifications

Speed and Visibility

Provides rapid execution of mass changes instead of iterative and time-consuming processes to get

data updated

Allows future values since pricing, material, customer and vendor master data attributes are time-

based (stored with an effective date)

Validation and Control

Ensures improved accuracy and reliability of master data that is critical for transaction execution

Provides a single point of access to all pricing, material, customer and vendor data

Supports dynamic or dependent field validation rules

SAP Data Maintenance (Pricing)

enhances SAP "Incentives and Paybacks"

SAP Paybacks and Chargebacks by Vistex, SAP

Incentives Administration by Vistex: SAP Data Maintenance (Pricing):

Accurate value calculations for Paybacks,

Chargebacks and Incentives depend upon multiple

pricing condition tables being updated correctly and in

a timely fashion

SAP Data Maintenance pricing workbench allows business

user-defined formulas to drive the mass update of condition

record values

Paybacks, Chargebacks and Incentives might involve

complex pricing calculations that rely on condition type-

specific logic, normally stored in pricing formulas

SAP Data Maintenance supports a virtually unlimited number

of pricing formulas without using up the standard customer

allowed range and permits business users to specify

calculation logic without depending on technical resources

Accurate value calculations for Paybacks,

Chargebacks and Incentives depend upon multiple

pricing condition tables being monitored in a timely

fashion

SAP Data Maintenance allows you to run Pricing Guidelines

which provide the ability to identify inconsistencies in pricing

values according to user-defined logic

Organizations running Paybacks, Chargebacks and

Incentives usually need a mechanism to publish their

prices, targets, margins, etc. for internal and/or external

partners

SAP Data Maintenance offers a flexible agreement-triggered

Price Book feature that has the ability to show/hide user-

selected price components

SAP Data Maintenance (Resources)

enhances SAP "Incentives and Paybacks"

SAP Paybacks and Chargebacks by Vistex, SAP

Incentives Administration by Vistex: SAP Data Maintenance (Resources):

Paybacks, Chargebacks and Incentives usually require

pricing calculations for a date in the past, but master

data attributes may have been updated since

SAP Data Maintenance attributes are stored with an effective

date that allows accurate time-based pricing

Paybacks, Chargebacks and Incentives often involve

pricing calculations that use business process-specific

attributes that are not easily captured in standard

master data objects

SAP Data Maintenance allows the creation of master data

extensions without technical intervention, making it possible to

store both internal and external attributes that influence price

calculations

Paybacks, Chargebacks and Incentives often rely on

the interpretation of external identifiers for partners and

materials, which leads to custom development of

cross-reference tables

SAP Data Maintenance provides several identification

mechanisms to recognize alternate identifiers for customers,

vendors and materials; customer/material and vendor/material

info records are also supported

Paybacks, Chargebacks and Incentives need current

relationship information (membership lists, sales

territory assignments, material allocation, etc.) that can

be cumbersome to implement in standard structures

SAP Data Maintenance offers flexible user-defined, time-

based relationship types that support a wide array of common

business requirements for partners and materials

Paybacks, Chargebacks and Incentives require current

product and/or customer hierarchy information for

accurate pricing and reporting

SAP Data Maintenance supports logical and/or functional

organization of Customers/Vendors/Materials into multi-tier

hierarchies with unlimited grouping potential

© SAP 2008 / Page 24

Technical Integration

Totally integrated embedded solutions

Development

Common Toolset & Methodology

Leverage SAP Technology, Functionality, Data, and User Interface

SAP “Premium Qualification” Solution Validation – Warranted by SAP

Compatible w/ SAP Releases & Support/Enhancement Packs

Process Integration

Extending core ERP

functionality with

“best-of-breed”

solutions

inside

SAP

Support

Access to global SAP

Support

Infrastructure:

1st and 2nd Level

Support via SAP

Service Marketplace

Customer Advantage:

Lowest risk & TCO

Fastest adoption & ROI

Greater value from SAP

Value architected in

Agenda


Q&A

Introduction


Company profile for Graybar

Fortune 500 company est. 1869

Leading North American distributor of electrical

and telecommunications equipment

Stock and sell hundreds of thousands of items

from thousands of manufacturers

Employed owned

$5+ Billion Sales (2008)

$526 Million Inventory

All locations have stock

250+ Locations

Distribution Centers, Branches and Counters

7,000 Employees

1,500 Sales Reps

1,900 Customer Service and Counter Personnel

1,700 Warehouse Personnel

729,000 SKU’s

7+ Million Plant/Material Records

Company profile for Graybar

“Take away” learning points

SAP Data Maintenance for ERP by Vistex leverages our SAP investment

Creates visibility to our pricing conditions

Addresses the need for efficient price maintenance

Pricing record information

63 unique tables or pricing conditions

1+ Million net price conditions

1+ Million Column Discount price conditions

600+ Thousand cost plus price conditions

Covering thousands of customers and manufacturers

Dynamic environment

Cost increases or decreases from suppliers

Commodity items’ prices increase/decrease often

Changes to product groupings

New customer

New project

Graybar pricing support

14 District Pricing Coordinators

Located in each of our 14 Districts

7 Pricing support personnel

Located within our Corporate structure

21 People total to manage a 2.8 million dynamic record set, spread

throughout 670 thousand customers.

Challenges prior to SAP Data Maintenance for

ERP by Vistex

Update one pricing condition type at a time per customer

Add seventeen pricing records under one pricing condition type

Change validity dates on one pricing condition type at a time, per customer, one item at a time

Unable to limit changes to a unique supplier

Increase or decrease rate one line item at a time

SAP Data Maintenance for ERP by Vistex

Fully integrated and embedded into our current SAP environment

Customizable, adapt for specific needs

Provides the visibility and tools needed for efficient and consistent

execution of pricing transactions.

Adding multiple records

Challenge:

Only add 14 pricing records under one pricing condition type

Adding column discounts: Add discount under condition supplement

• Different screen

• One line item at a time

Vistex:

Import Function (from spreadsheet data)

Changing multiple records

Challenge:

Change rate or validity dates seventeen line items at a time

Copy/paste

Cannot isolate a given supplier

One line item at a time

Vistex:

Select & Compute function

Changes to multiple condition types

Challenge:

Change one condition type at a time

Vistex:

Profile-Based Pricing

Allows changes to multiple condition types

• Import

• Select & Compute

Return on investment

Major supplier announces 5% increase

Cost Graybar $50K every day we are late passing the increase onto our customers

Cut Corporate support staff in half

Integrity with our customers

Customer contracts are extended

Contracts renegotiated

Summary

SAP Data Maintenance for ERP by Vistex offers efficient methods to

manage customer pricing:

Select & Compute

Import functionality

Make changes to multiple condition types

SAP customers can benefit by using SAP Data Maintenance for ERP by

Vistex:

Save time and money

Increase master data accuracy

Prevent profit leakage

Agenda


Q&A

Introduction


Integration activities

Material

Customer

Order entry –Price displays

Sales Deal

Cost Recovery Program

Bill revenue

manufacturer

Sales and

Marketing

Recover cost

- District

- National

http://www.sfs.uic.edu/sfshome/sfins/IMAGES/billing.gif

http://www.sfs.uic.edu/sfshome/sfins/IMAGES/billing.gif

Return on investment

The SAP Paybacks and Chargebacks by Vistex application provides wholesale

distributors and manufacturers using SAP R/3 or SAP ERP with a fully-integrated,

closed-loop process for handling their chargeback claim request-related

transaction processing.

This enables both the distributor and the manufacturer to leverage the EDI

capabilities for the SPA process, which reduces operating costs.

Visibility

Visibility of the data allows for greater usage.

• IP documents

• Can be sorted, aggregated, queried with the standard and custom t-codes.

• Can be fed to BW allowing more usage, and subsequently to the portal for web based

queries/reports.

• Common fields

• Shares common fields with SAP so that associating data is simple.

• General ledger

• Open Item managed GL accounts allow for aging of items.

• Chargebacks accrued per IP doc, Customer rebates and Incentives accrued monthly.

Consistency

Consistency of the data is paramount.

The ability to generate the same results with the same data sounds simple, but

with volume can become a data nightmare. The IP documents are created and

controlled with accuracy. Being able to prove results every time allows for

suppliers and customers to rely on the data as accurate.

With consistency comes reliability and less interruption of the daily activities. If

the users can trust what they see, they can use the data for decision making. The

employees administering the agreements can focus on new and changed data

instead of answering questions.

Chargebacks, Customer Rebates and Incentives can all be tied to the single

billing doc to produce the IP documents.

Batch processing at night creates the IP documents. Manual processing available

as needed.

Chargeback basic flow

Billing

DocumentsIP

document

Reconciliation

And

Settlement

Sales deals with

Matching conditions

IP doc’s are grouped into a

claim to the manufacturer

Chargebacks

• Agreements

The conditions allow for flexibility in use and control. Agreements can be built so

that rules are applied uniformly according to your business needs.

Access to specific Agreement types can be controlled by security to allow for

segregation of duties.

• SPA data

The SPA is made up of the contract (SPA) number, beginning and ending dates, the associated customers, the distributor, and the line item data. The line item data can be product (SKU) specific and/or product grouping (hierarchy) specific.

The 845 is the best process to deliver the SPA data, but still need to establish a set of conditions to house the rules for the contract (SPA) with the manufacturer. Excel versions of the data may be uploaded or need to be hand keyed. Paper, pdf, MSWord versions of the data need to be hand keyed.

Chargebacks

• Applying the SPA to the customer billing

An automated process for matching the key fields of the bill doc to the key fields

of the SPA is a must. However, a manual process for matching the key fields of

the bill doc to the key fields of the SPA is a convenience.

• Settlement

Chargebacks can be settled and included in A/P or sent via EDI for electronic

claims.

• Reconciliation

Differences are handled within the Chargeback process so that the GL is kept

intact.

Customer rebates flow

Billing

DocumentsIP

document

Reconciliation

And

Settlement

Agreements with

Matching conditions

IP doc’s are aggregated to

be applied to a scale to

determine payout

Customer rebates

• Agreements

The conditions allow for flexibility in use and control. Agreements can be built so

that rules are applied uniformly according to your business needs.

Screens can be assembled to display the data as desired. Users will see data

relevant to the customer instead of everything.

Payments to customers can be directly tied to A/P for ease of use.

Incentives administration basic flow

Billing

DocumentsIP

document

Reconciliation

And

Settlement

Sales credit partners

associated with the plan

on a participation table

IP doc’s are aggregated and

applied to a matrix to

determine payout

Incentives administration

• Plans

Different plans, once set up, can be maintained outside of IT. This allows for the

control of the plan to be based with the plan administrator.

Screens can be assembled to display the data as desired. Users will see data

relevant to their title instead of everything.

Incentives can be tied to HR/payroll for ease of payment.

© SAP 2008 / Page 51

Questions? Thank you!

For additional information, visit

http://www.sap.com/usa/solutions/solutionextensions/index.epx

http://www.sap.com/usa/solutions/solutionextensions/index.epx

VISTEX

Documents

Transcript of VISTEX