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Process documentationProcess of TPM with SAP ERP Enhanced Rebate Processing and Funds and Claims Management

 

This process allows you to build accruals for promotional rebates and settle rebates at account level and product level, while reserving budget for rebates and tracking budget consumption in SAP CRM.

Prerequisites

  • You have activated the following business functions:

    • In SAP CRM: Claims and Funds Management (CRM_CF_1)

    • In SAP ERP: ERP, Integration with Claims and Funds Management (ERP_CF_INTEGRATION_1) and FSCM Functions 3 (FIN_FSCM_CCD_3) (for integration with SAP Dispute Management)

Process

The following figure shows an example of a typical process:

  1. Trade promotion planning

    A brand owner creates and plans a trade promotion with variable rebates in SAP CRM at a fairly high level of the account hierarchy, covering a large number of individual stores or small franchises. From a product dimension, he or she plans the trade promotion at product group level or product category level. Pricing conditions are typically generated at account hierarchy level and, for example, product group level.

  2. Budget consumption tracking

    The brand owner assigns a funds plan with budgeted funds to the trade promotion. When he or she approves and releases the trade promotion, the SAP CRM system generates pricing conditions and rebate conditions, and transfers them to SAP ERP. From the rebate conditions, it generates rebate agreements with reference to the trade promotion and transfers them to SAP ERP as well. In addition, it generates fund usages, either at promotion planning level (one fund usage per trade spend with one fund usage item per product dimension) or, with trade promotions set up for individual products, at an aggregated level (see Aggregation of Fund Usage Items). These fund usages consume the funds that are assigned to the funds plan of the trade promotion.

  3. Trade promotion execution

    The stores or franchises start ordering promotional goods from the brand owner. Goods are shipped and invoiced. From the invoices, SAP ERP builds accruals on the invoiced promotional rebates at product level and account level. SAP ERP also updates the rebate statistics at product level and account level with the accrued amounts, the sales quantities, and the sales volume. The brand owner then uploads these values back to SAP CRM.

  4. Rebate agreement settlement

    The rebate agreements are settled through one of the following:

    • Invoice claims: The store or franchise sends in an invoice for promotional performance. The brand owner creates an invoice claim, validates the invoiced amount against the amount accrued in SAP ERP and/or the maximum payable amount determined in SAP ERP rebate processing, and settles the claim.

      The brand owner may also choose to pay out the accrued amounts or the amounts of simulated final settlements periodically to the individual stores or franchises (see Periodic Claim Creation).

    • Deduction claims: The store or franchise deducts an amount from an invoice received for ordering promotional goods. This is detected automatically in SAP ERP dispute management, where the system creates a dispute case. The brand owner uploads the dispute case to SAP CRM, where it is represented as a claim submission document. From the claim submission document, he or she creates a deduction claim, checks the deducted amount against the accrued amounts in SAP ERP, and approves the deduction or initiates a chargeback process. This closes the dispute case in SAP ERP.

    The brand owner can settle individual invoices sent by the stores or franchises, or a number of invoices collectively, as they come in. With collective claim processing, he or she can add several validated accounts to a claim. Validated accounts are accounts that belong to the account hierarchy node or target group of the trade promotion and for which sales volume exists for the corresponding trade promotion (see Collective Claims Processing). The payment amount can be capped to the maximum payable amount set in SAP ERP.

    The amount accrued in SAP ERP for each account is taken as reference data for the claims settlement (see Validation Against SAP ERP Accruals). To support product-level profitability accounting, the total settlement amount for each account is then broken down to products, again using the accrued amount as reference data for the split (see Proration of Claimed Amount).

    In all cases, the brand owner creates claim settlement documents in SAP CRM but they are transferred automatically to SAP ERP right away for further processing. All subsequent processes, such as account determination, taxation, or printing are executed in the SD billing documents that the system generates in SAP ERP from the SAP CRM claim settlement documents. SAP CRM claim settlement documents are no longer transferred directly into SAP ERP financial accounting and controlling. For this scenario, integration into SD billing in SAP ERP is mandatory (see Claim Settlement with Integration into SD Billing).

  5. Balancing

    Balancing reverses all open accruals related to a specific trade promotion and trade spend as soon as no further payments are expected (see Balancing). Reserved funds that were not used are made available for planning again.

More Information

Sample Procedure for TPM with SAP ERP Enhanced Rebate Processing