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 Ship-and-Debit

Purpose

This process allows you to credit the distributor/reseller for a resale transaction, as per the terms and condition of a ship-and-debit agreement.

Prerequisites

  • You have maintained ship-and-debit agreements as standard quantity contracts . In the Standard System, sales document type JSDQ is configured for this purpose. A line item of a ship-and-debit agreement in a standard quantity contract has a manufacturer book part number rather than material number.

    Note Note

    A ship-and-debit quantity contract must be extracted using an output mechanism in the ERP system.To do this:

    End of the note.
  • You have set up a condition type to be used for sales document output determination. This output type has transmission medium Special Function. It is recommended that the dispatch time for the Output type is set up as Send immediately (when saving the application).

  • For this output type, the Program is /SAPHT/RDRM_OUTPUT_PROCESS and form routine CONTRACT_ENTRY . In the Standard System, output type JRMC is configured for this.

  • You have ensured that the output type is part of the output determination procedure attached to the quantity contract.

Process Flow

Typically, the process starts when the distributor/reseller sends a claim request via EDI.

The EDI message lands in the DRM staging area. Based on the business rules applicable to the manufacturer/supplier (derived from the tracking partner’s DRM profile), the system validates the distributor’s claim request. You can configure the system to send a claim reject message to the distributor/reseller if the claim request does not meet one or more business rules applicable to it.

  1. You release the claim request from the DRM staging area after removing the transmission errors.

    On release from the staging area, the claim request creates an entry in the DRM ship-and-debit due list.

  2. You display items from the ship-and-debit due list as per your selection criteria, directing the system to calculate claim amounts in each case.

    For a claim item, the system determines if there is a matching resale that has been released for updating DRM lots. In the DRM profile attached to the tracking partner, you can define the logic that the system should apply to find the matching resale.

    The price protectable price, at the time of resale, of the DRM lots against which the matching resale is logged, is taken as the original sell-in cost incurred by the distributor/reseller.

    The DRM system then calculates the ship-and-debit claim amount using the following formulae:

    Ship and Debit Down To: Quantity * (Original sell-in condition rate minus down to ship and debit agreement rate). For example:

    Claim quantity = 100 EA

    Original sell in cost = $20 per 1 EA

    Down to ship and debit agreement rate = $18per 1 EA

    Ship and Debit claim amount = 100*(20-18)= $200

    Ship and Debit Down by Value: Quantity * (Ship-and-debit down by agreement rate)

    Claim quantity = 100 EA

    Original sell in cost = $20 per 1 EA

    Down by ship and debit agreement rate = $1.5 per 1 EA

    Ship and Debit claim amount = 100*1.5= $150

    Ship and Debit Down by. Quantity * (Ship-and-Debit down by agreement rate * Original Sell In cost)

    Claim quantity = 100 EA

    Original sell in cost = $20 per 1 EA

    Down to ship and debit agreement rate = 10%

    Ship and Debit claim amount = 100*0.1*20= $200

    The system logs an audit trail record against the lots if the matched resale has already logged one against these. In the Standard System, the audit trail is created using the transaction code MCLC .

  3. You now direct the system to create a credit memo request from the ship-and-debit due list item(s).

    The creation of credit memo request, and subsequently the credit memo, updates the processing status of the item in the ship-and-debit due list. You can configure the system to send a claim acceptance message to the distributor/reseller on creation of the claim credit memo.

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