TPM with SAP ERP Enhanced Rebate Processing and Funds and Claims Management
You use this scenario in the context of direct sales with smaller accounts, for planning and executing trade promotions with variable rebates, that is, rebates that depend on the sales volume of the individual accounts.
Example
The account receives a 3% rebate on all products ordered from a trade promotion, or he or she receives a rebate of USD 5 on all products ordered.
Implementation Considerations
Rebate Settlement at Account and Product Level
In trade promotion planning for smaller direct accounts, brand owners such as consumer goods companies tend to plan variable rebates at a higher level than where they actually execute the trade promotions, for efficiency reasons. This would typically include both the account dimension and the product dimension.
However, the downstream processes still have to operate at the typical granular level of account and product: Financial liabilities in the form of accruals for rebates must be incurred at account level, and payments for promotional performance must also be made to the individual account, subordinated to the planning level. To support product-level profitability analysis, accruals and payment amounts can be prorated on the products that are subordinated to the planning level.
The following figure compares the planning level and the execution level of a trade promotion, with regard to both the account hierarchy and the product hierarchy:
By using SAP ERP enhanced rebates processing with external accruals in your SAP CRM trade promotions, you can support these requirements: SAP ERP rebate agreements can accommodate multiple rebate recipients, thus enabling brand owners to build accruals and to settle rebates at product and account level.
Budget Control for Promotional Rebates in SAP CRM
For integration with budget reservation and consumption tracking, you can set up your trade promotions according to the following scenarios:
Scenario 1
You use SAP ERP (standard or enhanced) rebate processing without using SAP CRM funds and claims. Order management, accruals calculation, rebate settlement, and balancing all run in SAP ERP. Budget control is carried out in SAP NetWeaver BW. This means that you cannot carry out budget control in real-time and that you cannot match an invoice, sent by an account for promotional performance, to a trade promotion.
Scenario 2
You use SAP ERP (standard or enhanced) rebate processing in combination with SAP CRM funds and claims management. Order management runs in SAP ERP, while accruals are built in SAP CRM funds management, and rebate settlement and balancing take place in SAP CRM claims management. SAP ERP rebate agreements are not used for calculating accruals. (However, sales volumes from SAP ERP rebate agreements are transferred to SAP CRM and serve as a basis for the accrual calculation run in SAP CRM funds management.) This means that, with planning at an aggregated level, you cannot build accruals and settle rebates at product level and account level, but only at the aggregated planning level.
Scenario 3
You use SAP ERP enhanced rebate processing while building accruals in SAP ERP and running a full integration with budget control using SAP CRM funds and claims management. Accruals are built in SAP ERP rebate agreements based on the sales volume and are subsequently transferred into SAP CRM funds management. Settlement and balancing take place in SAP CRM claims management but the claim settlement documents are passed on right away to SAP ERP for further processing.
This allows you to build accruals and to settle rebates at product level and account level, while reserving and tracking the budget set up for promotional rebates inside SAP CRM.
To run this scenario, close integration into SAP ERP SD billing is required. The scenario is not available for SAP ERP standard rebate processing.
For more information, see Finalizing Rebate Agreements
in the Sales and Distribution
(SD
) component of SAP ERP Enhancement Packages.
Integration
For variable rebates, both accrual building and rebate settlement can take place in SAP CRM or SAP ERP, but not all combinations are possible. The following table shows the allowed combinations:
Accruals Calculated in SAP CRM Funds Management |
Accruals Calculated in SAP ERP Rebate Agreements |
|
|---|---|---|
Settlements in SAP CRM Claims Management Only |
Possible (scenario 2) |
Not possible |
Settlements in SAP CRM Claims Management with Integration into SD Billing |
Not possible |
Possible (scenario 3) |
Settlements in SAP ERP Rebate Agreements (Outside of SAP CRM Claims Management) |
Not possible |
Possible (scenario 1) |
The following documentation refers to scenario 3 only. To use scenario 3, the following applies:
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) andFSCM Functions 3
(FIN_FSCM_CCD_3) (for integration with SAP Dispute Management)