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Channel Marketing Funds (MDF/Co-Op) in SAP CRM

July 31st, 2014

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SAP Channel Marketing Funds (CMF) Overview

Channel Marketing Funds integrates with SAP CRM Campaign Management, Funds Management, Partner Channel Mgt., Claims Mgt.,Billing, SAP BI for Analytics and SAP ECC Purchasing & FICO for the following key features: Manufacturer ü  Planning & managing of Marketing activities in MDF/Co-Op Program ü  Allocation of funds to Product groups/products/Channel partners ü  Campaign Planning allows for assignment of funds to a Campaign

and reservation of funds according to Campaign planned costs ü  Approve Marketing activities and budgets for channel partners ü  Fund accrual for approved marketing activities & budgets ü  Approve Claims and Channel Partner Payments ü  Channel Partner and MDF/Co-Op performance Tracking

Channel Partner ü  Request Funding for specific marketing activities ü  Perform Marketing activities using collateral provided by

manufacturer ü  Submit Claims and proof for re-imbursement

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Channel Marketing Fund (CMF) Benefits

Manufacturer ü  Increased Lead generation and Sales ü  Faster claim approvals and Quicker Claim payment ü  Reduction in fraudulent claims ü  Consistent branding and increased marketing reach ü  Easier for channel partners to do business with manufacturer ü  Increased adoption by channel partners ü  Reduced administrative costs ü  Ensure Legal and Financial compliance

Channel Partner ü  Easier Claims processing ü  Self Service to track claim status, payments etc. ü  More Leads resulting in additional sales ü  Additional Marketing dollars ü  Leverage Manufacturer collateral

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End to End Channel Marketing Fund (CMF) Process Overview

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MDF/Co-op Program & Funds Management Process in SAP CRM

Funds Create Fund Plan

Create Funds

Initiatives Create

Initiative Template

MDF/Co-Op

program

Create MDF

Project

Assign Initiative Template

Assign Channel Partners

Assign Fund Plan

Generate Fund

Budget

Channel Manager

Sales Conferences Budget for Sales Conferences – $25k

Sales Conference July’13 Expense Types – Print Ad ($5k), Trade Show ($2k), TV Ad ($2.5k)

Reimbursement rate – 50%

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CMF Claims Management Process in SAP CRM

Channel Manager Partner Manager

Approve CMF Reservation

Create CMF Reservation

Enrollment/View CMF Initiatives

Approve CMF Claim

Create CMF Claim

Perform Marketing Activities

Settlement Update Fund Budget

Generate Accounts Rec/Pay

Sales Conference – Print Ad, Tradeshow, TV Ad

Sales Conference – Print Ad $1K X Reimbursement rate 50% = $500

Sales Conference – Print Ad $500 X Reimbursement rate 50% = $250

12 13

456

97 8

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CMF Funds Plan

Funds can be created for specific accounts, products, marketing plans and organizations, or territories, and are grouped into funds plans. Fund plan is a framework for the fund setup which groups individual funds with similar validity period, currencies and other fundamentals

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CMF Funds

CMF Funds support managing the administration, distribution, and consumption of funds for CMF and the respective budgets available to channel partners for funding co-marketing efforts.

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CMF Budget Posting

Budget posting transactions are used to manage fund budget. Budget fill, update, transfer, renew, extend, and expiry can be done using budget posting for funds

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CMF Initiative

CMF Initiatives are requests for funds by channel partners for marketing activities. It defines the marketing activities like Trade Show, TV Ads and has claim & causal information for channel partners

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MDF/Co-Op Program

MDF/Co-Op Program supports the setting up and managing the life cycle of CMF Projects. It allows managing eligible and enrolled channel partners, reimbursement rates, Initiative templates for budget creation and Fund plans for fund generation.

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Channel Partner Claim

On completion of marketing activities, channel partner can request a claim for reimbursement. Claims are validated based on business rules and can be approved/rejected by manufacturer.

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CMF Accruals

ü  Marketing funds committed for Channel Marketing need to be accrued as Liability in the correct posting period for Financial reporting

ü  Different Accrual calculation methods can be defined like §  Whole Amount on a Fixed date

§  Fund Usage amount for accrual period

§  Fund based amount on a fixed date

§  Spread accrual amount using reference data

§  Spread fund based amount using reference data

§  Accrual rate of Sales Volume

ü  Accrual calculation is done using the Accrual calculation methods in Funds and Funds Plan

ü  Accruals can be displayed, edited, searched and reversed

ü  Accruals are then posted to SAP ECC Financials as liabilities

ü  Claim payout consumes Fund accrual

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CMF Reports/Programs

•  RCRM_FM_ACL_ACCRUAL_RUN – Accrual Calculation

•  RCRM_FM_ACL_ACCRUAL_POSTING_FM – Accrual Posting in SAP ECC

•  RCRM_FM_ACL_ACCRUAL_CLEAN - Accrual Staging Area Clean up

•  RCRM_FM_ACL_ACCRUAL_UPLOAD_SV - Sales Volume Load from SAP ECC

•  RCRM_FM_FND_MASSCREATE_FND - Mass Fund Generation

•  RCRM_FM_BPTR_RUN - Automated Budget Posting Transfer Run based on rules

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Definition of CMF Terms

•  Fund Plan is a framework for the funds set-up providing funds to a logical unit, e.g. Product Launch Funds 2013. Fund plans group funds by purpose and organization. Funds plan control the allowed funds type per fund plan

•  MDF/Co-Op Program - An instrument that a brand owner uses to create and manage cooperative marketing with channel partners. MDF/Co-Op programs helps to setup structural elements that help achieve business objectives spanning a long period of time and act as a basis for managing processes with market development funds

•  Funds - Funds management is an application that allows brand owners to manage the administration, distribution, and consumption of funds. Budgets are provided Funds. Budget management is driven by funds as the determining attribute.

•  Budget represents an amount of money allocated to a fund intended for future incurred expenses related to CMF Initiative. Budget Postings are used to create or change budgets in the funds.

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Definition of CMF Terms

•  CMF Reservation is used for blocking fund budget from being used and therefore ensure that a fund still contains enough budget when an expected claim is created

•  CMF Claim follows up on an approved CMF Initiative that has a claiming scenario allowing for straight claims or claims can be created based on reservations. Claims are budget requests that consume money from one or more funds to reimburse channel partner costs.

•  CMF Special program is used for promotional activities with specific, midterm goals and always reside within an CMF program.

•  Initiative is used to outline the kind of fund requests that channel partners can make in the form of initiatives, thus demarcating the activities for funding.

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Contact Information: Ashish Saxena Email: ashish@accretesol.com Phone: 1-877-849-5838 Website: www.accrete-solutions.com